LDCE QUESTIONS 2001

LDCE QUESTION PAPERS YEAR WISE14th June 2001PAPER IImportant; this paper contains two sections A and B. both sections have to be answere. Sectin A carries 50 marks and Section B carries 100 marksSection A (max marks 50)GK I Expand the following abbreviations(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT(ix) UNESCO (x) SEBI 5 marksGK II write short notes onANY FIVEI. BALCO disinvestmentII. Dabhol power projectIII. External commercial borrowingIV. Moody’s ratingV. Narmada river valley projectVI. Green house effectVII. Public distribution system 10 marksGK III. write short notes in not more than 200 words on ANY ONE of the followingi. Official language policyii. Renewable energy sourcesiii. Information technology 10 marksGK 4 name the authors of the following booksi. God of small thingsii. Discovery of Indiaiii. Malgudi daysiv. Das capitalv. War and peace 5 marksGK 5 name the sports associated with the followingi. Ranji trophyii. Durand cupiii. Rangaswamy cupiv. Thomas cupv. Wimbledon 5 marks

GK 6 Use the following pairs of words in sentences of your owni. Poll – poleii. Adept – adaptiii. Excepted – expectediv. Opposite – appositev. Cite – site 10 marks

GK 7 Fill up the blanks with suitable prepositionThe cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______ a white paper __________ the financial position _____ the

state. The Government wanted ________ place the factual position _____ the people ______ the white paper 5 marks

SECTION B max marks 100

This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks

BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable but socially relevant projects over the few decades. The massive investment requirements of the shelf of pending projects need innovative measures for funding. Outline some of the specific initiates taken by the railways in this direction and suggest further measures to over come the problem of resource crunch.

BA 2 how is parliamentary control over railway’s finances exercised? What is the role of various parliamentary committees in this process?

BA 3 writes short notes on ANY FOURi. Ways And Means Advancesii. Rakesh Mohan Committeeiii. Railway Safety Fundiv. Action Taken Note’v. Commercial Exploitation Of Landvi. Amortization

BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to adopt this system?

BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the organization if the internal auditing system is strengthened?

PART BBB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department. Discuss

BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of traffic earnings. Discuss duly explaining the present system in detail

BB3 railways operate a large number of suspense heads. Discuss the need the context and the method of operation of any THREE of them selecting one each from earnings, revenue and expenditure and works expenditure

BB4 the delay in making available the acutals and the wide variation between the approximate and actual render the present system of closing of accounts

ineffective and liable for criticism. Give concrete suggestions to make tangible improvements in this area

BB5 physical performance and financial results do not go in tandem so far as earnings are concerned. What are the factors responsible for such a divergence?&/&/&/WWW

LDCE QUESTION PAPERS YEAR WISE15th June 2001PAPER IIThis paper contains two sections A and B. both sections have to be answered .Section A is compulsory for all candidates and carries maximum of 50 marks. Section B which carries maximum of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on their optional subject

SECTION A (max marks 50)

A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should be given up and there should be alignment of tariff with the costs. How far our traffic costing system can be relied upon to take decisions in such important aspect? Do you have any suggestions to make?A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway workingA3. With the computerisation of accounts is should be possible to determine the cost activity wise. Do you agree? What further measures are required to have meaningful data?A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an improvement over the normal costing system?

OrWhat is marginal costing? Explain the scope for adopting this concept for maximising the intensity of use of railway assetsSECTION BImportant: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)Answer any three questions. All questions carry equal marks

BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?

BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts office. Discuss

BA3. (i) What are the important operating statistics relating to goods operations?(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?BA 4 writes short notes on:I. Workmen’s compensationII. Transport allowanceIII. Annual statistical statement No 40IV. Operating ratioV. Pension fundBA 5. ‘Recommendation of V pay commission has thrown railway finances out of gear do you agree?OrElaborate the procedures of internal check of establishment claims in a computerised environment as distinct from manual bills

PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marksBB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single tender basis for execution of works and (2) post tender negotiation?

BB2. Write short notes on:(i) risk purchase(ii) profroma on cost(iii) “make” or “buy” decision(iv) completion reports(v) variation in quantities in a works contract

BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of workshops accounts office”. Discuss with particular reference to checks to be exercised in the preparation of statement

BB4. How far stock verification can contribute to better material management? What improvement, if any, would you suggest to make it more effective?

BB5. Explain the linkage between stores, WMS and Revenue Budget

BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation and management? Suggest remedies.

Posted by gracemugil at 9:27 AM LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY11TH JUNE 2008PAPER I

GENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A B & C both sections have to be answered section A carries 50 marks and section B carries 100 marksSECTION A (MAX MARKS-50)1. Write short notes on any two of the following (10 marks)a) Narmada Bachaob) VATc) Organ Transplantd) Right to Information Act2. Expand the following abbreviations ( 5 marks – ½ marks each)a) LPGb)CATc)PACd)SPVe)ONGCf) UPSCg)SPCAh) PERTg) IMFh) IRCTC3. Explain the concept of Raj Bhasha how it is implemented in your office (Please restrict your note to 250 words) 5 marks4. Name the authors of the following books ( 5 marks)a) God of Small Thingsb) Malgudi Daysc) As You Like ItD) My Experiments With TruthE) ArthashastraF) Who Moved My CheeseG) Anand MathH) The Monk Who Sold His FerrariI) Discovery of IndiaJ) Harry Potter and Order Of Phoenix5. Fill in the blanks (5 marks)a) Veni ______ viccib) A Stitch in time _____________ ____________

c) Ignorance is _____________d) Rise and Fall of _________ __________e) Few and ________ betweenf) I came, I saw and I __________g) Jai Jawan Jai ____________h) A thing of ________ is a joy foreveri) if they don’t have bread let them ear ____________j) a ___________ measures earthquake

6. Briefly explain the difference between the following (10 marks)a) Fundamental rights and directive principlesb) bonafide and malafidec) BOLT & BOTd) Limited tender an d open tendere) Concurrence and sanction7. The following personalities have been newsworthy. Briefly state the reason ( 10 marks)a) E Sreedharanb) INDIRA Nooyic) Barack Obamad) J K Rowlinge) Sunita Williamsf) Kiran Mazumdar Shawg) Dalai Lamah) Ratan Tatai) Asif Ali Sardarij) Hillary Clinton

SECTION B MAX MARKS 100This section contains two parts A & B Attempt four questions taking any two from eachAll questions carry equal marks of 25 each1. What is the need for separate audit by representatives of comptroller and auditor general with effective internal auditing within the system, can c& AG Audit can be dispensed with discuss in detail giving pros and cons.2. Write short notes on any fivea) Konkan Railway Corporationb) Canons of Financial Proprietyc) Delegation of powersd) reappropriationse) Charged and voted expendituref) Railway Boardg) Dedicated freight corridor

3. In the present set up of Indian railways what are the different “FUNDS” In brief describe the nature of each fund and their operation. Briefly discuss “CAPITAL

FUNDS”

4. How is the “operating ratio” calculated? What the limitations of this ratio in assessing the financial viability of the railway. What are your suggestions to bring down the operating ratio of Southern Railway?

5. “Railway finances were separated fro general finances primarily to secure stability for civil estimates by providing for an assured contribution from railway revenues and also to introduce flexibility in the administration of railway finances, is this concept still relevant today. Discuss relative advantages and disadvantages.

PART B

1. What is the purpose of “accounts office balance sheet. Briefly indicate the nature of debit and credit entries. What action would be taken for realisation of old outstanding?

2. Write short notes on any fivea) Zero based budgetingb) Suspense headsc) Apportionment of earningsd) M & P Programmee) Approximate account currentf) Railway Act3. What is “appropriation accounts” annexure J is an index of the efficiency of the accounts department. Discuss how we can on southern railway minimise the number of instances brought under annexure J4. In the existing systems, the closure of accounts take considerable time. Even then the booked expenditure do not reflect the actual and correct picture. Critically examine the procedure of monthly, quarterly and annual closing and give your suggestions for improving the existing system. Also indicates whether approximate account current should continue5. “Traditional Budgeting is functionally oriented and accounting oriented but not result oriented. Zero based budgeting is an improvement over traditional budgeting” dicusss this statement in detail in the context Indian railways and also explain how zero based budget can be applied for revenue budget (i.e. working expenses).

LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY12TH JUNE 2008PAPER IITOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS CARRY EQUAL MARKS

PART IFINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50) ATTEMPT ANY TWO OUT OF QUESTIONS 1 TO 4

1 In the context of railway operations, explain the cost of joint costs. What is the basis on which such costs are apportioned among various services?2. Write short notes on any five (maxi marks 5 each)a.) Uneconomic Branch Linesb.) Out of Turn WorksC) Special Limited TendersD) Throughput Enhanced WorksE) Terminal ChargesF) Orange Book and Pink BookG) Specific Fuel Consumption

3. What is meant by productivity test and how it is applied to new projects? Do they serve the purpose as intended?4. Highlight the importance of Sensitivity Analysis in evaluating investment proposals. How would you apply this to a proposal for a new line project?

PART IIMANAGEMENT ACCOUNTING (MAX MARKS 50) ANSWER ANY TWO QUESTIONS OUT OF QUESTIONS 5 TO 8

5. Define Break Even Analysis how it is calculated and what are the uses of Break-Even Analysis as a management tool

6. Write short notes on any five:a) Management AuditB) Profit Volume RatioC) Wagon Turn AroundD) Variance AnalysisE) Net Tonne KilometresF) Standard Costing7. What is meant by financial ratios illustrate any two ratios can operating ratio be taken as a financial ratio give reasons8. Discuss in detail the concept of performance of budgeting and its application in railway working

PART III MAX MARKS 50Important answer any two out of questions 9 to 12 or any two out of questions 13 to 16

PART III A9. What is meant by apportionment of earnings how is it done in respect of goods earnings of through traffic?10. What is traffic suspense what are the items that constitute traffic suspense give your suggestions to reduce traffic suspense on Southern Railway?11. Write short notes on any fivea) Leave Not DueB) Staff Benefit FundC) Foreign Service ContributionD) Supernumerary PostE) Ex Gratia PaymentF) Special Casual Leave12. (a) Briefly describe the organisational set up of the statistical departmentAnd(b) Define the followingi. Engine Hoursii. Gross Tonne Kilometresiii. Route Kilometresiv. Occupation Ratio

PART III BWORKSHOP STORES ACCOUNTS AND GENERAL EXPENDITURE13. discuss how the POH of a Locomotive is worked out and explain how direct and indirect costs are taken into accounts14. (a) what is stock adjustment accounts(b) What are the various items adjusted through this accountC. Who is the competent authority to sanction the clearance of balance under this head15. What are the essentials of a good inventory control system? Discuss ABC analysis and its advantages

16. Write short notes on any fivea) Completion Estimates and Completion ReportsB) Risk and CostC) Non-Schedule ItemsD) Final Location SurveyE) Fall Clausef) EFT and ECS Posted by gracemugil at 7:34 AM 0 comments Labels: QUESTIONS

LDCE QUESTIONS 2007

LDCE QUESTION PAPERS YEAR WISE 2007SOUTHERN RAILWAY14TH FEBRUARY 2007PAPER IGENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A & B. Both sections have to be answered section A carries 50 marks and section B carries 100 marksSECTION A (MAX MARKS-50)1. write a short essay on any of the following (10 marks)a. If there is poverty anywhere, it affects prosperity every where.b. Effect of information technology on employment – is it positive or negative?c. Raj Bhasha policy implementation on IR2. Expand the following abbreviations ( 5 marks – 0.5 marks)a. GDP b. CDROM c. RVNL d.GPS e. LIBOR f. PSLV g. GSLV h. SEBI i. BOLT j. ASEAN3. Find the difference in meaning and usage of the following pairs of words( 5 marks)a. effluent & affluent b. hallmark & bench mark c. jeans & genes d. affect & effect e. interpret & interrupt4. why have these persons been in the news ( 5 marks)a. Dr Raja J Cheeliah b. Nawjot Singh Siddhu c. Wangari Maathai d. Mohammed Ynus e. Shane Warne5. give the name of the authors of these books (5 marks)a. Search in Secret India b. Raja Tarangini c. The World is flat d. Ignited Minds e. Savitri6. where are the following situated ( 3 marks 0.5 marks )a. Buland Darwaza b. Hawa Mahal c. RDSO d. Petronas Towers e. Rolland Garros Ground f. Wax Museum of Madam Tussaud7. Match the following ( 2 marks 0.5 marks)

Uber cup Cricket

China man TennisCheck mate BadmintonDeuce chess8. write a paragraph on any two of the following ( 4 marks each)a. Dedicated Freight Corridor b. Ombudsman c. GM Crops d. Garib Rath9. use the following in sentences of your own ( 6 marks 1 ½ marks each)a. ultra wires b. de-novo c. suo-moto d. inter-alia10. use the following idioms In your own sentences ( 5 marks)a. bite the dust b. strike a balance c. in the same breath d. cast the first stone e. pay through the noseSECTION B MAX MARKS 100This section contains two parts A & B Attempt four questions taking any two from eachAll questions carry equal marks Part A1. in a developing country like India on the threshold of the take-off, there is always competing demands between remunerative tariffs and societal needs. This calls of new ways of resource rising and innovative revenue measures. Describe the recent steps taken by IR in the regard. Do you have any suggestion?

2. the public accounts committee of parliament has repeatedly criticised the increasing trend of misclassifications ain accounts and mistakes in budgeting. Present an analysis of the causes for these problems. Suggest appropriate steps to eliminate their recurrence3. railways are at once a Govt dept and commercial enterprise. Discuss how the twin-need of Govt and commercial accounting are satisfied in railway accounting process. Discuss the issue of dividend payment to the central revenue in this context.4. write shot notes on any two of the following :a. Integrated Budget b. Zero Based Budgeting c. Performance Budgeting d. Corporate Plans

Part B5. Raiwlay Board (FC) have recently appointed a committee to explore the reasons for the delay in submission of monthly actual expenditure and also the variations between the approximates and the actuals. From your angle, analyze the causes for these delays and variations. Can the approximate be dispensed with the actuals submitted at an earlier date? Suggest steps for this.6. There is a plethora of suspense heads in railway accounting. Discuss the need for continued operation of these suspense heads, specifically focussing on one suspense head each from Earnings, revenue expenditure and works expenditure7. Write short notes on the following a. demands payable b. exchequer control c. SRS F d. Annual Debt head Report8. What is the accounting mechanism for recording the traffic earnings of a railway under various heads and their progressive realisation? Also describe the

procedure for the apportionment of traffic earnings amongst railways

ANSWER ANY TWO out of questions 9 to 12 or ANY TWO out of questions 13 to 16 (25 each)PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHMENT ( 50 MARKS)9. do you agree with the statement the magnitude of outstanding under traffic suspense reflects the efficiency of traffic accounts office? Discuss with your suggestions to bring it to the optimal levels.10. a. what are the various types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.b. what is the reason for the continued difference between accounts office figures and statistical figures in monthly earnings?11. Write short notes on a. leave not due b. recent changes in the haulage charges of postal traffic c. scale check register d. combine train reports12. Give significance of the following statistical resultsa. wagon kilometres per wagon per day b. net tonne kilo meters c. occupation ratio d. net tonne kilo meters per engine hourPart III B WORKSHOP AND STORES ACCOUNTS AND GENERAL EXPENDITURE13. Elucidatea. what are the constituent elements of workshop manufacturing suspense?b. the objective and procedure for job costing in a railway workshop. How would you take make or buy decision based on cost data?14. write short notes on a. VED b.repeat order c. stores exception reports d. transfer pricing15. a. describe the various techniques used for reducing the material cost through various stages in the purchase,storage, issue and disposalb. how is inventory turn over ratio calculated? Can it be termed as a reliable index of inventory management

16. discuss the management information system with special reference to material management. Explain how the system helps the management in decision making.

LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY15TH FEBRUARY 2007PAPER IITOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS

CARRY EQUAL MARKS

PART IFINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50)

1. Describe the steps/stages involved in preparing a project report for new line project, predominantly for carrying iron ore. How is the project-appraisal and sensitivity analysis done for assessing the viability of the project? Assume your own data

2. Answer the following a. there is a section of opinion which holds that cross-subsidisation in fares between passenger and goods in railways should be abandoned and the fare structure should align costs with tariff. Does the present traffic costing system provide adequate and reliable data to discuss the opinion?

b. discuss the methodologies of costing EMU services

3. Discuss any three of the following in briefa. social cost benefit analysis b. specific fuel consumption c. apportionment of joint costs d. green book e. two packet system of tendering f. risk and cost tender

4. Railways need alternative sources for plan expenditure. Discuss the schemes like BOLT, BOT and projects under PPP in furthering this purpose.

PART II MANAGEMENT ACCOUNTING ( Max marks 50)5. Explain the concept and utility of financial ratio analysis. Discuss the use of at least four ratios to assess the comparative performance of a railway in different periods as well as with other railways

6.a. discuss cost volume-profit analysis . Describe the utility of break-even analysis for profit planning, continue or drop a product, make or buy decisions etcb. zenith company manufactures a special cement which is sold in bags of 20 kgs its financial data is given belowSelling price per bag: Rs. 30.00Variable cost per bag: Rs 16.00Fixed cost : Rs 100000.00Quantity : 3000 bagsCalculate the following a. Break even quantityb. Assume 10 % increase in fixed cost and calculate the new break even pointc. Assume 50 % increase in fixed cost and calculate the new break even pointd. Assume increase in variable cost to Rs 20 per bag and calculate the new break even point

7. write short notes on any three of the followinga. variance analysis b. fund flow analysis c. AFRES d. PERT8. what is meant by Product Life Cycle Costing? Also explain the purpose of the same. What step you would recommend to reduce the life cycle cost in a railway production unit? Posted by gracemugil at 7:33 AM 0 comments Labels: QUESTIONS

LDCE QUESTIONS 2003

LDCE QUESTION PAPERS YEAR WISEMAY 2003PAPER IPART I GENERAL KNOWLEDGE & ENGLISH1. Expand the following abbreviations ( 5 marks half marks each)a) BCCIb) KRCLc) RITESd) IRSSEe) GNPf) MFNg) CCRSh) FEMAi) CD-ROMj) IVRS2. Name the following (5 marks each half marks each)a) First Indian woman to win an Olympic medalb) General manager, southern railwayc) Chairman railway boardd) Mixed doubles’ champions of Australian open 2003e) Venue of Olympics 2004f) Currency of Bangladeshg) Firs president of Indiah) Batsman to score the fastest century in cricket world cupi) The author of the column “with malice towards one and all”j) Secretary of state USA3. In which cities would you find the following ( 5 marks half marks each)a) Leaning Towerb) Statue Of Libertyc) Lotus Templed) Hutatma Chowke) Louvers Museumf) ‘Petronas’ Towersg) Gate Way Of Indiah) Popes’ Residencei) Vidhan Soudha j) Wimbledon

4. Match the following ( 3 marks half mark each)1. rugby a. castle2. golf b. pole position3. motor racing c. deuce4. chess d. little slam5. tennis e. eagle6. contract bridge f. touch down5. Name the authors of the following books ( 2 marks half mark each)a) Interpreter Of Maladiesb) Discovery Of Indiac) A Suitable Boyd) Madhushala6. What are the following ( 3 marks half mark each)a) East coast railway head quartersb) Rail coach factoryc) Diesel component worksd) Garden reache) Baroda housef) IRIATTENGLISH LANGUAGE8. USE THE FOLLOWING to bring out the difference in meaning ( 5 marks 1 mark each)a) Bear and bareb) Lose and loosec) Break and braked) Severe and perseveree) Genes and jeans9. use the following in your own sentences ( 10 marks 1 mark each)a) Suo motob) Fight shy ofc) De factod) Let sleeping dogs liee) Lingua francaf) Take to heartg) Ad infinitumh) At the eleventh houri) Par excellencej) Laughing stock 10. Write a para of not more than SIX sentences on ANY TWO of the following (10 marks 5 marks each)a) Child is the father of the manb) There is many a slip between the cup and the lipc) Brevity is the soul of witPART II GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING (50 marks)11. Write briefly about the various funds now in operation in Indian railways (10)12. Answer ANY TWO of the following (20 each)

a) Trace briefly the various stages from survey to completion report of a new lineb) Write short notes on ANY TWO of the following 1. appropriation accounts2. misc advance revenue3. productivity testc) Distinguish between ANY TWO of the following1. Operating ratio and PEI2. TC and JV3. Sundry earnings and miscellaneous earningsPART III BOOKS & BUDGET (INCLUDING TRAFFIC BOOK) (50 MARKS)13. What steps would you suggest to reduce cash handling by railway (10)14. Answer ANY TWO of the followinga) How are the earnings apportioned between zonal railways? Is apportionment necessary?b) Distinguish between approximate and actual account current. Is it necessary to prepare both?c) What are the various components of traffic suspense? How can we control each of them?LDCE QUESTION PAPERS YEAR WISE 2003PAPER II

SIX QUESTIONS ARE TO ANSWERED (TWO FROM PART I TWO FROM PART II AND TWO FROM EITHER PART III A OR PART III B) (each question carries 25 marks)Part I FINANCIAL JUSTIFICATION AND TRAFFIC COSTING ( 50 MARKS)1. How are Suburban cost worked out in the railway? Is the methodology adequate?2. write short notes on ANY THREE of the followinga. urgency certificateb. debits under demand no 9c. material modificationd. wagon turn round3. if the route between Madurai and Tutucorin is to electrified how will you work out the justification? What are the major data required?PART II MANAGEMENT ACCOUNTING (50 MARKS)4. What are the various sources of non-traditional earnings that have been and can be exploited by railways? Comment on the success or failure of the efforts to southern railway in this area in 2001-02 and 2002-035. What is ratio analysis? Discuss any two major ratios used in railways vis-à-vis companies6. Discuss the use of computers in railway financial management. What are the areas that should be covered in computerised financial management information system?

ANSWER ANY TWO out of questions 7, 8 and 9 or ANY TWO out of questions 0,11 and 12 (25 each)

PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHEMENT ( 50 MARKS)7. Introduction of PRS, ARTS machines and other modernisations hve led to newer types of frauds. What steps can be taken by traffic accounts office and TIAs to detect these frauds? Illustrate your answer with at least two types of frauds8. Write shot notes on ANT THREE of the followinga) LPCb) Combined/joint train reportc) NTKMd) Classification of commoditiese) Leave not due9. How would you check the following proposals?a. station to station rate for moving sponge ironb. proposal under volume discount schemec. opening of a halt station

PART III B WORKSHOP &STORES AND GENERAL EXPENDITURE (50 marks)10 a. explain the concept of part estimatesb. is there any need for accounts office to vet tender schedule in works tenders? Write in detail bringing out Board’s orders on the subject11. Write short notes on ANY THREE of the followinga) Turnover ratiob) Letter of creditc) Basic schedule of ratesd) Material at site accounts 12 how are POH debits settled between two zonal railways? What are the reasons or wide variation in POH costs in different workshops and what can be done to bring about uniformity? Posted by gracemugil at 7:32 AM 0 comments Labels: QUESTIONS

MONDAY, OCTOBER 05, 2009

LDCE QUESTIONS 2001

LDCE QUESTION PAPERS YEAR WISE14th June 2001PAPER IImportant; this paper contains two sections A and B. both sections have to be answere. Sectin A carries 50 marks and Section B carries 100 marksSection A (max marks 50)GK I Expand the following abbreviations(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT(ix) UNESCO (x) SEBI 5 marksGK II write short notes onANY FIVEI. BALCO disinvestmentII. Dabhol power project

III. External commercial borrowingIV. Moody’s ratingV. Narmada river valley projectVI. Green house effectVII. Public distribution system 10 marksGK III. write short notes in not more than 200 words on ANY ONE of the followingi. Official language policyii. Renewable energy sourcesiii. Information technology 10 marksGK 4 name the authors of the following booksi. God of small thingsii. Discovery of Indiaiii. Malgudi daysiv. Das capitalv. War and peace 5 marksGK 5 name the sports associated with the followingi. Ranji trophyii. Durand cupiii. Rangaswamy cupiv. Thomas cupv. Wimbledon 5 marks

GK 6 Use the following pairs of words in sentences of your owni. Poll – poleii. Adept – adaptiii. Excepted – expectediv. Opposite – appositev. Cite – site 10 marks

GK 7 Fill up the blanks with suitable prepositionThe cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______ a white paper __________ the financial position _____ the state. The Government wanted ________ place the factual position _____ the people ______ the white paper 5 marks

SECTION B max marks 100

This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks

BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable but socially relevant projects over the few decades. The massive investment requirements of the shelf of pending projects need innovative measures for funding. Outline some of the specific initiates taken by the railways in this direction and suggest further measures to over come the problem of resource crunch.

BA 2 how is parliamentary control over railway’s finances exercised? What is the role of various parliamentary committees in this process?

BA 3 writes short notes on ANY FOURi. Ways And Means Advancesii. Rakesh Mohan Committeeiii. Railway Safety Fundiv. Action Taken Note’v. Commercial Exploitation Of Landvi. Amortization

BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to adopt this system?

BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the organization if the internal auditing system is strengthened?

PART BBB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department. Discuss

BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of traffic earnings. Discuss duly explaining the present system in detail

BB3 railways operate a large number of suspense heads. Discuss the need the context and the method of operation of any THREE of them selecting one each from earnings, revenue and expenditure and works expenditure

BB4 the delay in making available the acutals and the wide variation between the approximate and actual render the present system of closing of accounts ineffective and liable for criticism. Give concrete suggestions to make tangible improvements in this area

BB5 physical performance and financial results do not go in tandem so far as earnings are concerned. What are the factors responsible for such a divergence?&/&/&/WWW

LDCE QUESTION PAPERS YEAR WISE15th June 2001PAPER IIThis paper contains two sections A and B. both sections have to be answered .Section A is compulsory for all candidates and carries maximum of 50

marks. Section B which carries maximum of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on their optional subject

SECTION A (max marks 50)

A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should be given up and there should be alignment of tariff with the costs. How far our traffic costing system can be relied upon to take decisions in such important aspect? Do you have any suggestions to make?A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway workingA3. With the computerisation of accounts is should be possible to determine the cost activity wise. Do you agree? What further measures are required to have meaningful data?A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an improvement over the normal costing system?

OrWhat is marginal costing? Explain the scope for adopting this concept for maximising the intensity of use of railway assetsSECTION BImportant: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)Answer any three questions. All questions carry equal marks

BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?

BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts office. Discuss

BA3. (i) What are the important operating statistics relating to goods operations?(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?BA 4 writes short notes on:I. Workmen’s compensationII. Transport allowanceIII. Annual statistical statement No 40IV. Operating ratioV. Pension fundBA 5. ‘Recommendation of V pay commission has thrown railway finances out of gear do you agree?

OrElaborate the procedures of internal check of establishment claims in a computerised environment as distinct from manual bills

PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marksBB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single tender basis for execution of works and (2) post tender negotiation?

BB2. Write short notes on:(i) risk purchase(ii) profroma on cost(iii) “make” or “buy” decision(iv) completion reports(v) variation in quantities in a works contract

BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of workshops accounts office”. Discuss with particular reference to checks to be exercised in the preparation of statement

BB4. How far stock verification can contribute to better material management? What improvement, if any, would you suggest to make it more effective?

BB5. Explain the linkage between stores, WMS and Revenue Budget

BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation and management? Suggest remedies. Posted by gracemugil at 9:27 AM 0 comments Labels: QUESTION PAPER

LDCE QUESTIONS 1996

LDCE QUESTION PAPERS YEAR WISE6th September 1996PAPER IGENERAL KNOWLEDGE AND ENGLISH; GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOKImportant: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximum, and section B carries 100 marksSECTION AGK1. Expand the abbreviations in any five 5 marks

a) CTBTb) ICRISATc) NABARDd) ECAFEe) PSLVf) WTOg) SEBIh) MATi) ILOj) BIFRGK2. (I) Write short notes on any five 10 marksa) Alamatti Damb) CHIPKO Movementc) Medha Patkard) Damodhar Valley Corporatione) Vote On Accountf) Atlantag) Solar EnergyOr(ii) Write the main features of the official language Act 1963 (Act 19 of 1963)

GK3. Write a note in not more than 200 words on any one of the following 15 marksa) Public sector disinvestment programmeb) Amarnath yatrac) SAARCGK 4. Fill up the blanks with suitable preposition 5 marksComing back _______ the Eastern Railway, operations were _____ its peak efficiency and ____ February and March 1969, _____ loading figures ____ coal and general goods set new records. ___ far ____ general goods loading is concerned the figures obtained _____ those months have never been reached subsequently.GK 5. Name the authors of the following books 5 marksa) Discovery of Indiab) My experiments with truthc) Passage to Indiad) As you like ite) IvanhoeGK 6. What is common to the following railway stations from the point of view of fast travel 5 marksLucknow, Kalka, Amritsar, Dehardun, Bhopal, Bokaro, Ahmedabad, and BangaloreGK 7. Name the four highest civilian awards given in our country naming atleast two recipients of the highest award 5 marks

SECTION B (MAXIMUM MARKS 100)

This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks of 25PART ABA 1. What are the various instruments through which the Indian railway finance corporation raises funds? How are these deposited to meet the capital requirement of railways ? how does the Indian railways discharge its liability to the corporation? BA 2. write short notes on any foura) Amortisationb) Capital Fundc) Railway Fare And Freight Enquiry Committeed) Activity Based Costinge) BOLT Schemesf) Budgetary Reports

BA3. What are the various committees of parliament relating to railway financial performance? Explain in detail the working of any one of the committees

BA4. “In the wake of economic reforms and liberalisation policies Indian railway’s system and procedures require fundamental change” discuss

BA 5. (a) What is the purpose of different funds in the set up of the existing railway’s financial system?(b) What are the implications in financial terms and nature of justification between charging of works to capital fund and capital-at-charge?

PART BBB 1. What do you understand by zero based budget? How is this improvement over the conventional system of budgeting in railways?BB2. Explain the present system of remittance of earnings into government account. What are your suggestions for improving the promptness of accountal?BB3. How is the earnings budget of a railway formulated? What is the usefulness of various statistical data in this exercise?BB4. Within the appropriations voted by parliament, relays should be free to prioritise their investments on works, rolling stock and machinery and plant. Do you agree? Give reasons for your answer. BB5. The present system of closing of accounts and transfer adjustments delay the availability of accounting information for decision making. What are the areas in which this can be improved upon?

LDCE QUESTION PAPERS YEAR WISE7th September 1996PAPER IIFINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS:

ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximum

Section B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.

Section A maximum marks 50A – 1. what do you understand by “life-cycle” costing? What are the important areas where it can be employed? How is it an improvement over the normally known costing system?A – 2. what is meant by financial ratios? Enumerate any three of them. Can the operating ratio be considered as a financial ratio? Give reasons for your answerA – 3. a work costing Rs 75 Lakhs and not included in the sanctioned budget is required to be executed urgently. What is the procedure to be followed in the zonal railway before the work can be commenced?A- 4. in regard to goods traffic what is the traffic costing information available? How are they helpful in investment formulation?Section BImportant: this section contains two part A & B. either part A or Part B should be attempted by candidates depending on their choice of optional. Each part contains a maximum of 100 marks.Part A Traffic accounts and statistics establishmentAnswer any three questionsAll questions carry equal marksBA 1. What is the impact and consequential changes on the traffic accounts office due to introduction of passenger reservation system (PRS) and advanced railway ticketing system (ARTS)? Has this contributed to the efficiency of internal check?BA 2. Write short notes on a) Cash in transitb) Leave not duec) Ex- Gratia bonusd) Demands recoverablee) Charges for haulage of postal trafficBA 3. What are the types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.BA 4. How far can the procedure relating to internal check in the accounts code be dispensed with in respect of computer prepared pay bills?BA 5. The performance of the accounts dept in recovering dues to the administration from the employees requires improvement. Can you suggest any system improvement? Part B General Expenditure accounts workshop and stores accountsBB1. Higher inventory levels are preferable to “out of stock” situations. What are

the economic and financial implications?BB2 what are the existing safe guards for effective control over expenditure? Can you suggest any improvement?BB 3. What do you understand by the “two envelope system” in a works tender? How is this an improvement over the existing open tender system?BB4. The existing system of incentive payment encourages inefficiency and dilutes quality. Can you suggest any alternative system to improve productivity in the workshops?BB 5. an item was simultaneously ordered on two sources after an open tender – A at Rs 2.00 per unit and B at Rs 2.05 per unit. B completes his supply within the delivery period of 90 days and A fails to even commence supply. In this back ground a proposal is received from the COS for enhancing the quantity on B, arguing that the item is regularly required and stocks will last only 15 days. B is agreeable for the enhancement. What will be your recommendations on the proposal? Give reasons for your answer. Posted by gracemugil at 9:26 AM 0 comments Labels: QUESTION PAPER

LDCE QUESTIONS 1994

LDCE QUESTION PAPERS YEAR WISEMAY 1994PAPER IGENERAL KNOWLDEDGE AND ENGLISH; GENERAL PRICIPLES OF GOVERNEMNT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOKImportant: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximutm, and section B carries 100 marksSECTION A (Max marks 50)GK1. Expand the abbreviations in any five 5 marksi. GATT ii. IMFiii. ANCiv. ASEANv. SLVvi. NPTvii. CATviii. RBIix. ADBx. UPSCGK 2. Write short note on any five 10 marksi. Isobarii. Dunkeliii. Territorial watersiv. Wind farmsv. Bosaniavi. Telugu ganga

vii. Nelson Mandelaviii. Yasser Arafatix. Narmada projectx. Hazarat bal mosqueGK 3. Match the following 5 marksi. Lara a. Jhansiii. Rabindranath Tagore b. Atomic Energyiii. Lakshmi Bai c. Cricketiv. Homi Baba d. Chessv. Anand e. Geethanjali GK 4. Use any five of the following pairs of words in sentences of your own 10 marksi. coarse – course vi. Prey - prayii. wise - vice vii. Brake - breakiii. call – cavail viii. Tall – tolliv. rain – rein ix. Foil - failv. sell - cell x. Naval – Novel

GK 5. Fill up the blank with suitable prepositions 5 marksThe absence _____ census data is taken advantage of ____ various persons ____ each state ____boost the estimates _______ persons speaking their language.

GK 6. Write a note in not more than 250 words one of the following 10 marksa. national literacy programmeb. rail road coordinationc. public sector undertakingGK 7. Give one word for any five of the following 5 marksi. one who sells flowers ii. doctor treating childreniii. specialist in heart diseaseiv. documents issued by authority to its citizens who wants to travel abroadv. the presiding authority over Lok Sabha who generally conducts its proceedingsvi. one who writes dramasvii. the highest point of a mountainviii. a person who knows a number of languagesix. science dealing with study of animals and birds

SECTION BThis section contains two parts A and B. Attempt any four questions taking any two from each part. All questions carry equal marksPART ABA 1. Discuss the committee system introduced for ________ of the budget and examine whether this in any way rendered any of other already existing instrument/procedure for financial control of railway by parliament redundant.BA 2. What is the purpose of different “funds” in the set up of existing financial

system of railways? Has there been any change in the last two years? Discuss the pros and cons of the change if anyBA 3. In what way the present set up and systems and procedures in railway help or hinder the railway in coping with the recent liberalisation policy initiated by the Government? DiscussBA 4. Write short notes on any foura. Railway Convention Committeeb. Plan Heads c. Indian Railway Finance Corporationd. Konkan Railway Corporatione. Canons Of Financial ProprietyBA 5. What is the need for separate audit by representatives of the Comptroller and Auditor General? With more effective organisation or internal auditing system can it be dispensed with? DiscussPART BBB 1. Do you consider the present procedure method of assessing earnings effective and realistic? Suggest any improvements / innovations you feel necessaryBB 2. How far the principles of zero based budgeting and management accounting been adopted I n railway in assessing the requirement as also reasonableness and need of inputs and analysis and presentation? DiscussBB 3. “The present system of monitoring and accountal of remittance of earnings is not effective In preventing frauds”. Discuss. Do you suggest any procedural changes? BB 4. “The present procedure of apportionment of earnings and expenditure is not fair to the southern railway with limited lead”. DiscussBB 5. Discuss whether it is necessary to have Annual Works Programme, and M&P as at present? What are the alternatives/improvements you would suggest and why?

LDCE QUESTION PAPERS YEAR WISEMay 1994PAPER IIFINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximumSection B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.

Section A maximum marks 50Attempt any two questions. Each questing carries 25 marksA – 1. How far the present traffic costing been effective in determining realistically the financial viability of introduction of new trains/augmentation of service? A – 2. “Traffic costing like statistics is often used not for enlightenment in taking correct decision but for supporting decisions one wants to take”. How far is this statement well founded or unfounded. Discuss with specific cases if any illustrating your stand. A – 3. How often the principle of marginal costing used in capturing / retaining the customer while protecting and furthering the financial interest of railways? IllustrateA – 4. How far the principle of zero based assessment of inputs and innovation in management accounting principles utilised to further the objective of change over to unigauge system? Discuss.

SECTION BImportant: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional Each part contains a maximum of 100 marks

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)Answer any three questions. All questions carry equal marksBA – 1. How far the present method of compilation and presentation of statistical data helped in effective management decision and control on railway? BA – 2. Division as profit center knows its expenditure and not its earnings. How far divisionalisation of traffic accounts help in ensuring effective informed participation nad mobilisation in bettering the financial performance of the division? BA – 3. Has the computerisation of reservation system helped in improving the earnings, effecting analysis of passenger profile to maximise the earnings/utilisation of seats, plug loopholes? Discuss the effectiveness of passenger reservation system (PRS) and advance railway ticketing system(ARTS) introduced in current booking. BA – 4. Write Short Notes Ona. Firms Credit Notes (FCNs)b. Special Casual Leavec. National Holidayd. Wage Periode. Productivity Linked Bonus (PLB)BA – 5. Discuss the present method of accountal and recovery of advances and dues like festival advances, diet charges, electricity charges from the staff. Discuss whether the system for recovery is effective and suggest any improvement felt necessaryBA – 6. What are the steps you would suggest to control the expenditure on

establishment – which has almost doubled over the last few years – for improving the competitiveness of the railways and its viability?PART B (GENERAL EXPENDITURE ACCOUNTS AND WORKSHOP AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marksBB – 1. Is risk purchase effective in our system? If not why not and what is the procedural/policy correctives you would suggest?BB -2. With the cost of finance the inventory carriage is increasingly becoming costly. How can railways reduce inventory without compromising on effectiveness of its service and also ensure economy?BB - 3. Discuss the effectiveness of prevailing system of incentive payment in railway workshop. How is it an instrument for improving productivity with quality commensurate with investment for modernisation of the workshop?BB – 4. How far the system of purchase through open tenders ensured quality with economy and reliability? Should railway change over to a system of identifying reliable suppliers with long term commitment in the interest of ensuring quality and reliability? BB – 5. is the present procedure/method of planning , procuring and inducting machines as replacement or for modernisation cost effective? What are the improvements you suggest to ensure the investments slim, strictly need based and improvement is productivity commensurate with investment is ensured?BB – 6. There is growing feeling that “we should better privatise, better buy than make”. Why is this so? What role can stores and workshop accounts play to rationalise and ensure “makes”, more attractive than “buys” and reverse the trend?

LDCE QUESTIONS 1994

LDCE QUESTION PAPERS YEAR WISEMAY 1994PAPER IGENERAL KNOWLDEDGE AND ENGLISH; GENERAL PRICIPLES OF GOVERNEMNT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOKImportant: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximutm, and section B carries 100 marksSECTION A (Max marks 50)GK1. Expand the abbreviations in any five 5 marksi. GATT ii. IMFiii. ANCiv. ASEANv. SLVvi. NPTvii. CAT

viii. RBIix. ADBx. UPSCGK 2. Write short note on any five 10 marksi. Isobarii. Dunkeliii. Territorial watersiv. Wind farmsv. Bosaniavi. Telugu gangavii. Nelson Mandelaviii. Yasser Arafatix. Narmada projectx. Hazarat bal mosqueGK 3. Match the following 5 marksi. Lara a. Jhansiii. Rabindranath Tagore b. Atomic Energyiii. Lakshmi Bai c. Cricketiv. Homi Baba d. Chessv. Anand e. Geethanjali GK 4. Use any five of the following pairs of words in sentences of your own 10 marksi. coarse – course vi. Prey - prayii. wise - vice vii. Brake - breakiii. call – cavail viii. Tall – tolliv. rain – rein ix. Foil - failv. sell - cell x. Naval – Novel

GK 5. Fill up the blank with suitable prepositions 5 marksThe absence _____ census data is taken advantage of ____ various persons ____ each state ____boost the estimates _______ persons speaking their language.

GK 6. Write a note in not more than 250 words one of the following 10 marksa. national literacy programmeb. rail road coordinationc. public sector undertakingGK 7. Give one word for any five of the following 5 marksi. one who sells flowers ii. doctor treating childreniii. specialist in heart diseaseiv. documents issued by authority to its citizens who wants to travel abroadv. the presiding authority over Lok Sabha who generally conducts its proceedingsvi. one who writes dramasvii. the highest point of a mountainviii. a person who knows a number of languages

ix. science dealing with study of animals and birds

SECTION BThis section contains two parts A and B. Attempt any four questions taking any two from each part. All questions carry equal marksPART ABA 1. Discuss the committee system introduced for ________ of the budget and examine whether this in any way rendered any of other already existing instrument/procedure for financial control of railway by parliament redundant.BA 2. What is the purpose of different “funds” in the set up of existing financial system of railways? Has there been any change in the last two years? Discuss the pros and cons of the change if anyBA 3. In what way the present set up and systems and procedures in railway help or hinder the railway in coping with the recent liberalisation policy initiated by the Government? DiscussBA 4. Write short notes on any foura. Railway Convention Committeeb. Plan Heads c. Indian Railway Finance Corporationd. Konkan Railway Corporatione. Canons Of Financial ProprietyBA 5. What is the need for separate audit by representatives of the Comptroller and Auditor General? With more effective organisation or internal auditing system can it be dispensed with? DiscussPART BBB 1. Do you consider the present procedure method of assessing earnings effective and realistic? Suggest any improvements / innovations you feel necessaryBB 2. How far the principles of zero based budgeting and management accounting been adopted I n railway in assessing the requirement as also reasonableness and need of inputs and analysis and presentation? DiscussBB 3. “The present system of monitoring and accountal of remittance of earnings is not effective In preventing frauds”. Discuss. Do you suggest any procedural changes? BB 4. “The present procedure of apportionment of earnings and expenditure is not fair to the southern railway with limited lead”. DiscussBB 5. Discuss whether it is necessary to have Annual Works Programme, and M&P as at present? What are the alternatives/improvements you would suggest and why?

LDCE QUESTION PAPERS YEAR WISEMay 1994

PAPER IIFINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximumSection B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.

Section A maximum marks 50Attempt any two questions. Each questing carries 25 marksA – 1. How far the present traffic costing been effective in determining realistically the financial viability of introduction of new trains/augmentation of service? A – 2. “Traffic costing like statistics is often used not for enlightenment in taking correct decision but for supporting decisions one wants to take”. How far is this statement well founded or unfounded. Discuss with specific cases if any illustrating your stand. A – 3. How often the principle of marginal costing used in capturing / retaining the customer while protecting and furthering the financial interest of railways? IllustrateA – 4. How far the principle of zero based assessment of inputs and innovation in management accounting principles utilised to further the objective of change over to unigauge system? Discuss.

SECTION BImportant: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional Each part contains a maximum of 100 marks

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)Answer any three questions. All questions carry equal marksBA – 1. How far the present method of compilation and presentation of statistical data helped in effective management decision and control on railway? BA – 2. Division as profit center knows its expenditure and not its earnings. How far divisionalisation of traffic accounts help in ensuring effective informed participation nad mobilisation in bettering the financial performance of the division? BA – 3. Has the computerisation of reservation system helped in improving the earnings, effecting analysis of passenger profile to maximise the earnings/utilisation of seats, plug loopholes? Discuss the effectiveness of passenger reservation system (PRS) and advance railway ticketing system(ARTS) introduced in current booking. BA – 4. Write Short Notes On

a. Firms Credit Notes (FCNs)b. Special Casual Leavec. National Holidayd. Wage Periode. Productivity Linked Bonus (PLB)BA – 5. Discuss the present method of accountal and recovery of advances and dues like festival advances, diet charges, electricity charges from the staff. Discuss whether the system for recovery is effective and suggest any improvement felt necessaryBA – 6. What are the steps you would suggest to control the expenditure on establishment – which has almost doubled over the last few years – for improving the competitiveness of the railways and its viability?PART B (GENERAL EXPENDITURE ACCOUNTS AND WORKSHOP AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marksBB – 1. Is risk purchase effective in our system? If not why not and what is the procedural/policy correctives you would suggest?BB -2. With the cost of finance the inventory carriage is increasingly becoming costly. How can railways reduce inventory without compromising on effectiveness of its service and also ensure economy?BB - 3. Discuss the effectiveness of prevailing system of incentive payment in railway workshop. How is it an instrument for improving productivity with quality commensurate with investment for modernisation of the workshop?BB – 4. How far the system of purchase through open tenders ensured quality with economy and reliability? Should railway change over to a system of identifying reliable suppliers with long term commitment in the interest of ensuring quality and reliability? BB – 5. is the present procedure/method of planning , procuring and inducting machines as replacement or for modernisation cost effective? What are the improvements you suggest to ensure the investments slim, strictly need based and improvement is productivity commensurate with investment is ensured?BB – 6. There is growing feeling that “we should better privatise, better buy than make”. Why is this so? What role can stores and workshop accounts play to rationalise and ensure “makes”, more attractive than “buys

LDCE QUESTIONS 1996

LDCE QUESTION PAPERS YEAR WISE6th September 1996PAPER IGENERAL KNOWLEDGE AND ENGLISH; GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOKImportant: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximum, and section B carries 100 marks

SECTION AGK1. Expand the abbreviations in any five 5 marksa) CTBTb) ICRISATc) NABARDd) ECAFEe) PSLVf) WTOg) SEBIh) MATi) ILOj) BIFRGK2. (I) Write short notes on any five 10 marksa) Alamatti Damb) CHIPKO Movementc) Medha Patkard) Damodhar Valley Corporatione) Vote On Accountf) Atlantag) Solar EnergyOr(ii) Write the main features of the official language Act 1963 (Act 19 of 1963)

GK3. Write a note in not more than 200 words on any one of the following 15 marksa) Public sector disinvestment programmeb) Amarnath yatrac) SAARCGK 4. Fill up the blanks with suitable preposition 5 marksComing back _______ the Eastern Railway, operations were _____ its peak efficiency and ____ February and March 1969, _____ loading figures ____ coal and general goods set new records. ___ far ____ general goods loading is concerned the figures obtained _____ those months have never been reached subsequently.GK 5. Name the authors of the following books 5 marksa) Discovery of Indiab) My experiments with truthc) Passage to Indiad) As you like ite) IvanhoeGK 6. What is common to the following railway stations from the point of view of fast travel 5 marksLucknow, Kalka, Amritsar, Dehardun, Bhopal, Bokaro, Ahmedabad, and BangaloreGK 7. Name the four highest civilian awards given in our country naming atleast two recipients of the highest award 5 marks

SECTION B (MAXIMUM MARKS 100)This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks of 25PART ABA 1. What are the various instruments through which the Indian railway finance corporation raises funds? How are these deposited to meet the capital requirement of railways ? how does the Indian railways discharge its liability to the corporation? BA 2. write short notes on any foura) Amortisationb) Capital Fundc) Railway Fare And Freight Enquiry Committeed) Activity Based Costinge) BOLT Schemesf) Budgetary Reports

BA3. What are the various committees of parliament relating to railway financial performance? Explain in detail the working of any one of the committees

BA4. “In the wake of economic reforms and liberalisation policies Indian railway’s system and procedures require fundamental change” discuss

BA 5. (a) What is the purpose of different funds in the set up of the existing railway’s financial system?(b) What are the implications in financial terms and nature of justification between charging of works to capital fund and capital-at-charge?

PART BBB 1. What do you understand by zero based budget? How is this improvement over the conventional system of budgeting in railways?BB2. Explain the present system of remittance of earnings into government account. What are your suggestions for improving the promptness of accountal?BB3. How is the earnings budget of a railway formulated? What is the usefulness of various statistical data in this exercise?BB4. Within the appropriations voted by parliament, relays should be free to prioritise their investments on works, rolling stock and machinery and plant. Do you agree? Give reasons for your answer. BB5. The present system of closing of accounts and transfer adjustments delay the availability of accounting information for decision making. What are the areas in which this can be improved upon?

LDCE QUESTION PAPERS YEAR WISE7th September 1996PAPER II

FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximum

Section B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.

Section A maximum marks 50A – 1. what do you understand by “life-cycle” costing? What are the important areas where it can be employed? How is it an improvement over the normally known costing system?A – 2. what is meant by financial ratios? Enumerate any three of them. Can the operating ratio be considered as a financial ratio? Give reasons for your answerA – 3. a work costing Rs 75 Lakhs and not included in the sanctioned budget is required to be executed urgently. What is the procedure to be followed in the zonal railway before the work can be commenced?A- 4. in regard to goods traffic what is the traffic costing information available? How are they helpful in investment formulation?Section BImportant: this section contains two part A & B. either part A or Part B should be attempted by candidates depending on their choice of optional. Each part contains a maximum of 100 marks.Part A Traffic accounts and statistics establishmentAnswer any three questionsAll questions carry equal marksBA 1. What is the impact and consequential changes on the traffic accounts office due to introduction of passenger reservation system (PRS) and advanced railway ticketing system (ARTS)? Has this contributed to the efficiency of internal check?BA 2. Write short notes on a) Cash in transitb) Leave not duec) Ex- Gratia bonusd) Demands recoverablee) Charges for haulage of postal trafficBA 3. What are the types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.BA 4. How far can the procedure relating to internal check in the accounts code be dispensed with in respect of computer prepared pay bills?BA 5. The performance of the accounts dept in recovering dues to the administration from the employees requires improvement. Can you suggest any system improvement?

Part B General Expenditure accounts workshop and stores accountsBB1. Higher inventory levels are preferable to “out of stock” situations. What are the economic and financial implications?BB2 what are the existing safe guards for effective control over expenditure? Can you suggest any improvement?BB 3. What do you understand by the “two envelope system” in a works tender? How is this an improvement over the existing open tender system?BB4. The existing system of incentive payment encourages inefficiency and dilutes quality. Can you suggest any alternative system to improve productivity in the workshops?BB 5. an item was simultaneously ordered on two sources after an open tender – A at Rs 2.00 per unit and B at Rs 2.05 per unit. B completes his supply within the delivery period of 90 days and A fails to even commence supply. In this back ground a proposal is received from the COS for enhancing the quantity on B, arguing that the item is regularly required and stocks will last only 15 days. B is agreeable for the enhancement. What will be your recommendations on the proposal? Give reasons for your answer

LDCE QUESTIONS 2001

LDCE QUESTION PAPERS YEAR WISE14th June 2001PAPER IImportant; this paper contains two sections A and B. both sections have to be answere. Sectin A carries 50 marks and Section B carries 100 marksSection A (max marks 50)GK I Expand the following abbreviations(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT(ix) UNESCO (x) SEBI 5 marksGK II write short notes onANY FIVEI. BALCO disinvestmentII. Dabhol power projectIII. External commercial borrowingIV. Moody’s ratingV. Narmada river valley projectVI. Green house effectVII. Public distribution system 10 marksGK III. write short notes in not more than 200 words on ANY ONE of the followingi. Official language policyii. Renewable energy sourcesiii. Information technology 10 marksGK 4 name the authors of the following booksi. God of small thingsii. Discovery of Indiaiii. Malgudi daysiv. Das capital

v. War and peace 5 marksGK 5 name the sports associated with the followingi. Ranji trophyii. Durand cupiii. Rangaswamy cupiv. Thomas cupv. Wimbledon 5 marks

GK 6 Use the following pairs of words in sentences of your owni. Poll – poleii. Adept – adaptiii. Excepted – expectediv. Opposite – appositev. Cite – site 10 marks

GK 7 Fill up the blanks with suitable prepositionThe cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______ a white paper __________ the financial position _____ the state. The Government wanted ________ place the factual position _____ the people ______ the white paper 5 marks

SECTION B max marks 100

This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks

BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable but socially relevant projects over the few decades. The massive investment requirements of the shelf of pending projects need innovative measures for funding. Outline some of the specific initiates taken by the railways in this direction and suggest further measures to over come the problem of resource crunch.

BA 2 how is parliamentary control over railway’s finances exercised? What is the role of various parliamentary committees in this process?

BA 3 writes short notes on ANY FOURi. Ways And Means Advancesii. Rakesh Mohan Committeeiii. Railway Safety Fundiv. Action Taken Note’v. Commercial Exploitation Of Landvi. Amortization

BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to adopt this system?

BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the organization if the internal auditing system is strengthened?

PART BBB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department. Discuss

BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of traffic earnings. Discuss duly explaining the present system in detail

BB3 railways operate a large number of suspense heads. Discuss the need the context and the method of operation of any THREE of them selecting one each from earnings, revenue and expenditure and works expenditure

BB4 the delay in making available the acutals and the wide variation between the approximate and actual render the present system of closing of accounts ineffective and liable for criticism. Give concrete suggestions to make tangible improvements in this area

BB5 physical performance and financial results do not go in tandem so far as earnings are concerned. What are the factors responsible for such a divergence?&/&/&/WWW

LDCE QUESTION PAPERS YEAR WISE15th June 2001PAPER IIThis paper contains two sections A and B. both sections have to be answered .Section A is compulsory for all candidates and carries maximum of 50 marks. Section B which carries maximum of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on their optional subject

SECTION A (max marks 50)

A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should be given up and there should be alignment of tariff with the costs. How far our traffic costing system can be relied upon to take decisions in such important aspect? Do you have any suggestions to make?A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway workingA3. With the computerisation of accounts is should be possible to determine the cost activity wise. Do you agree? What further measures are required to have

meaningful data?A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an improvement over the normal costing system?

OrWhat is marginal costing? Explain the scope for adopting this concept for maximising the intensity of use of railway assetsSECTION BImportant: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)Answer any three questions. All questions carry equal marks

BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?

BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts office. Discuss

BA3. (i) What are the important operating statistics relating to goods operations?(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?BA 4 writes short notes on:I. Workmen’s compensationII. Transport allowanceIII. Annual statistical statement No 40IV. Operating ratioV. Pension fundBA 5. ‘Recommendation of V pay commission has thrown railway finances out of gear do you agree?OrElaborate the procedures of internal check of establishment claims in a computerised environment as distinct from manual bills

PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marksBB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single tender basis for execution of works and (2) post tender negotiation?

BB2. Write short notes on:(i) risk purchase

(ii) profroma on cost(iii) “make” or “buy” decision(iv) completion reports(v) variation in quantities in a works contract

BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of workshops accounts office”. Discuss with particular reference to checks to be exercised in the preparation of statement

BB4. How far stock verification can contribute to better material management? What improvement, if any, would you suggest to make it more effective?

BB5. Explain the linkage between stores, WMS and Revenue Budget

BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation and management? Suggest remedies.

LDCE QUESTIONS 2003

LDCE QUESTION PAPERS YEAR WISEMAY 2003PAPER IPART I GENERAL KNOWLEDGE & ENGLISH1. Expand the following abbreviations ( 5 marks half marks each)a) BCCIb) KRCLc) RITESd) IRSSEe) GNPf) MFNg) CCRSh) FEMAi) CD-ROMj) IVRS2. Name the following (5 marks each half marks each)a) First Indian woman to win an Olympic medalb) General manager, southern railwayc) Chairman railway boardd) Mixed doubles’ champions of Australian open 2003e) Venue of Olympics 2004f) Currency of Bangladeshg) Firs president of Indiah) Batsman to score the fastest century in cricket world cupi) The author of the column “with malice towards one and all”

j) Secretary of state USA3. In which cities would you find the following ( 5 marks half marks each)a) Leaning Towerb) Statue Of Libertyc) Lotus Templed) Hutatma Chowke) Louvers Museumf) ‘Petronas’ Towersg) Gate Way Of Indiah) Popes’ Residencei) Vidhan Soudha j) Wimbledon4. Match the following ( 3 marks half mark each)1. rugby a. castle2. golf b. pole position3. motor racing c. deuce4. chess d. little slam5. tennis e. eagle6. contract bridge f. touch down5. Name the authors of the following books ( 2 marks half mark each)a) Interpreter Of Maladiesb) Discovery Of Indiac) A Suitable Boyd) Madhushala6. What are the following ( 3 marks half mark each)a) East coast railway head quartersb) Rail coach factoryc) Diesel component worksd) Garden reache) Baroda housef) IRIATTENGLISH LANGUAGE8. USE THE FOLLOWING to bring out the difference in meaning ( 5 marks 1 mark each)a) Bear and bareb) Lose and loosec) Break and braked) Severe and perseveree) Genes and jeans9. use the following in your own sentences ( 10 marks 1 mark each)a) Suo motob) Fight shy ofc) De factod) Let sleeping dogs liee) Lingua francaf) Take to heart

g) Ad infinitumh) At the eleventh houri) Par excellencej) Laughing stock 10. Write a para of not more than SIX sentences on ANY TWO of the following (10 marks 5 marks each)a) Child is the father of the manb) There is many a slip between the cup and the lipc) Brevity is the soul of witPART II GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING (50 marks)11. Write briefly about the various funds now in operation in Indian railways (10)12. Answer ANY TWO of the following (20 each)a) Trace briefly the various stages from survey to completion report of a new lineb) Write short notes on ANY TWO of the following 1. appropriation accounts2. misc advance revenue3. productivity testc) Distinguish between ANY TWO of the following1. Operating ratio and PEI2. TC and JV3. Sundry earnings and miscellaneous earningsPART III BOOKS & BUDGET (INCLUDING TRAFFIC BOOK) (50 MARKS)13. What steps would you suggest to reduce cash handling by railway (10)14. Answer ANY TWO of the followinga) How are the earnings apportioned between zonal railways? Is apportionment necessary?b) Distinguish between approximate and actual account current. Is it necessary to prepare both?c) What are the various components of traffic suspense? How can we control each of them?LDCE QUESTION PAPERS YEAR WISE 2003PAPER II

SIX QUESTIONS ARE TO ANSWERED (TWO FROM PART I TWO FROM PART II AND TWO FROM EITHER PART III A OR PART III B) (each question carries 25 marks)Part I FINANCIAL JUSTIFICATION AND TRAFFIC COSTING ( 50 MARKS)1. How are Suburban cost worked out in the railway? Is the methodology adequate?2. write short notes on ANY THREE of the followinga. urgency certificateb. debits under demand no 9c. material modificationd. wagon turn round3. if the route between Madurai and Tutucorin is to electrified how will you work out the justification? What are the major data required?

PART II MANAGEMENT ACCOUNTING (50 MARKS)4. What are the various sources of non-traditional earnings that have been and can be exploited by railways? Comment on the success or failure of the efforts to southern railway in this area in 2001-02 and 2002-035. What is ratio analysis? Discuss any two major ratios used in railways vis-à-vis companies6. Discuss the use of computers in railway financial management. What are the areas that should be covered in computerised financial management information system?

ANSWER ANY TWO out of questions 7, 8 and 9 or ANY TWO out of questions 0,11 and 12 (25 each)PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHEMENT ( 50 MARKS)7. Introduction of PRS, ARTS machines and other modernisations hve led to newer types of frauds. What steps can be taken by traffic accounts office and TIAs to detect these frauds? Illustrate your answer with at least two types of frauds8. Write shot notes on ANT THREE of the followinga) LPCb) Combined/joint train reportc) NTKMd) Classification of commoditiese) Leave not due9. How would you check the following proposals?a. station to station rate for moving sponge ironb. proposal under volume discount schemec. opening of a halt station

PART III B WORKSHOP &STORES AND GENERAL EXPENDITURE (50 marks)10 a. explain the concept of part estimatesb. is there any need for accounts office to vet tender schedule in works tenders? Write in detail bringing out Board’s orders on the subject11. Write short notes on ANY THREE of the followinga) Turnover ratiob) Letter of creditc) Basic schedule of ratesd) Material at site accounts 12 how are POH debits settled between two zonal railways? What are the reasons or wide variation in POH costs in different workshops and what can be done to bring about uniformity?

LDCE QUESTIONS 2007

LDCE QUESTION PAPERS YEAR WISE 2007SOUTHERN RAILWAY

14TH FEBRUARY 2007PAPER IGENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A & B. Both sections have to be answered section A carries 50 marks and section B carries 100 marksSECTION A (MAX MARKS-50)1. write a short essay on any of the following (10 marks)a. If there is poverty anywhere, it affects prosperity every where.b. Effect of information technology on employment – is it positive or negative?c. Raj Bhasha policy implementation on IR2. Expand the following abbreviations ( 5 marks – 0.5 marks)a. GDP b. CDROM c. RVNL d.GPS e. LIBOR f. PSLV g. GSLV h. SEBI i. BOLT j. ASEAN3. Find the difference in meaning and usage of the following pairs of words( 5 marks)a. effluent & affluent b. hallmark & bench mark c. jeans & genes d. affect & effect e. interpret & interrupt4. why have these persons been in the news ( 5 marks)a. Dr Raja J Cheeliah b. Nawjot Singh Siddhu c. Wangari Maathai d. Mohammed Ynus e. Shane Warne5. give the name of the authors of these books (5 marks)a. Search in Secret India b. Raja Tarangini c. The World is flat d. Ignited Minds e. Savitri6. where are the following situated ( 3 marks 0.5 marks )a. Buland Darwaza b. Hawa Mahal c. RDSO d. Petronas Towers e. Rolland Garros Ground f. Wax Museum of Madam Tussaud7. Match the following ( 2 marks 0.5 marks)

Uber cup CricketChina man TennisCheck mate BadmintonDeuce chess8. write a paragraph on any two of the following ( 4 marks each)a. Dedicated Freight Corridor b. Ombudsman c. GM Crops d. Garib Rath9. use the following in sentences of your own ( 6 marks 1 ½ marks each)a. ultra wires b. de-novo c. suo-moto d. inter-alia10. use the following idioms In your own sentences ( 5 marks)a. bite the dust b. strike a balance c. in the same breath d. cast the first stone e. pay through the noseSECTION B MAX MARKS 100This section contains two parts A & B Attempt four questions taking any two from each

All questions carry equal marks Part A1. in a developing country like India on the threshold of the take-off, there is always competing demands between remunerative tariffs and societal needs. This calls of new ways of resource rising and innovative revenue measures. Describe the recent steps taken by IR in the regard. Do you have any suggestion?

2. the public accounts committee of parliament has repeatedly criticised the increasing trend of misclassifications ain accounts and mistakes in budgeting. Present an analysis of the causes for these problems. Suggest appropriate steps to eliminate their recurrence3. railways are at once a Govt dept and commercial enterprise. Discuss how the twin-need of Govt and commercial accounting are satisfied in railway accounting process. Discuss the issue of dividend payment to the central revenue in this context.4. write shot notes on any two of the following :a. Integrated Budget b. Zero Based Budgeting c. Performance Budgeting d. Corporate Plans

Part B5. Raiwlay Board (FC) have recently appointed a committee to explore the reasons for the delay in submission of monthly actual expenditure and also the variations between the approximates and the actuals. From your angle, analyze the causes for these delays and variations. Can the approximate be dispensed with the actuals submitted at an earlier date? Suggest steps for this.6. There is a plethora of suspense heads in railway accounting. Discuss the need for continued operation of these suspense heads, specifically focussing on one suspense head each from Earnings, revenue expenditure and works expenditure7. Write short notes on the following a. demands payable b. exchequer control c. SRS F d. Annual Debt head Report8. What is the accounting mechanism for recording the traffic earnings of a railway under various heads and their progressive realisation? Also describe the procedure for the apportionment of traffic earnings amongst railways

ANSWER ANY TWO out of questions 9 to 12 or ANY TWO out of questions 13 to 16 (25 each)PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHMENT ( 50 MARKS)9. do you agree with the statement the magnitude of outstanding under traffic suspense reflects the efficiency of traffic accounts office? Discuss with your suggestions to bring it to the optimal levels.10. a. what are the various types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.b. what is the reason for the continued difference between accounts office figures and statistical figures in monthly earnings?

11. Write short notes on a. leave not due b. recent changes in the haulage charges of postal traffic c. scale check register d. combine train reports12. Give significance of the following statistical resultsa. wagon kilometres per wagon per day b. net tonne kilo meters c. occupation ratio d. net tonne kilo meters per engine hourPart III B WORKSHOP AND STORES ACCOUNTS AND GENERAL EXPENDITURE13. Elucidatea. what are the constituent elements of workshop manufacturing suspense?b. the objective and procedure for job costing in a railway workshop. How would you take make or buy decision based on cost data?14. write short notes on a. VED b.repeat order c. stores exception reports d. transfer pricing15. a. describe the various techniques used for reducing the material cost through various stages in the purchase,storage, issue and disposalb. how is inventory turn over ratio calculated? Can it be termed as a reliable index of inventory management

16. discuss the management information system with special reference to material management. Explain how the system helps the management in decision making.

LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY15TH FEBRUARY 2007PAPER IITOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS CARRY EQUAL MARKS

PART IFINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50)

1. Describe the steps/stages involved in preparing a project report for new line project, predominantly for carrying iron ore. How is the project-appraisal and sensitivity analysis done for assessing the viability of the project? Assume your own data

2. Answer the following a. there is a section of opinion which holds that cross-subsidisation in fares

between passenger and goods in railways should be abandoned and the fare structure should align costs with tariff. Does the present traffic costing system provide adequate and reliable data to discuss the opinion?

b. discuss the methodologies of costing EMU services

3. Discuss any three of the following in briefa. social cost benefit analysis b. specific fuel consumption c. apportionment of joint costs d. green book e. two packet system of tendering f. risk and cost tender

4. Railways need alternative sources for plan expenditure. Discuss the schemes like BOLT, BOT and projects under PPP in furthering this purpose.

PART II MANAGEMENT ACCOUNTING ( Max marks 50)5. Explain the concept and utility of financial ratio analysis. Discuss the use of at least four ratios to assess the comparative performance of a railway in different periods as well as with other railways

6.a. discuss cost volume-profit analysis . Describe the utility of break-even analysis for profit planning, continue or drop a product, make or buy decisions etcb. zenith company manufactures a special cement which is sold in bags of 20 kgs its financial data is given belowSelling price per bag: Rs. 30.00Variable cost per bag: Rs 16.00Fixed cost : Rs 100000.00Quantity : 3000 bagsCalculate the following a. Break even quantityb. Assume 10 % increase in fixed cost and calculate the new break even pointc. Assume 50 % increase in fixed cost and calculate the new break even pointd. Assume increase in variable cost to Rs 20 per bag and calculate the new break even point7. write short notes on any three of the followinga. variance analysis b. fund flow analysis c. AFRES d. PERT8. what is meant by Product Life Cycle Costing? Also explain the purpose of the same. What step you would recommend to reduce the life cycle cost in a railway production unit?

LDCE QUESTIONS 2008

LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY11TH JUNE 2008PAPER I

GENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A B & C both sections have to be answered section A carries 50 marks and section B carries 100 marksSECTION A (MAX MARKS-50)1. Write short notes on any two of the following (10 marks)a) Narmada Bachaob) VATc) Organ Transplantd) Right to Information Act2. Expand the following abbreviations ( 5 marks – ½ marks each)a) LPGb)CATc)PACd)SPVe)ONGCf) UPSCg)SPCAh) PERTg) IMFh) IRCTC3. Explain the concept of Raj Bhasha how it is implemented in your office (Please restrict your note to 250 words) 5 marks4. Name the authors of the following books ( 5 marks)a) God of Small Thingsb) Malgudi Daysc) As You Like ItD) My Experiments With TruthE) ArthashastraF) Who Moved My CheeseG) Anand MathH) The Monk Who Sold His FerrariI) Discovery of IndiaJ) Harry Potter and Order Of Phoenix5. Fill in the blanks (5 marks)a) Veni ______ viccib) A Stitch in time _____________ ____________c) Ignorance is _____________d) Rise and Fall of _________ __________e) Few and ________ betweenf) I came, I saw and I __________g) Jai Jawan Jai ____________h) A thing of ________ is a joy forever

i) if they don’t have bread let them ear ____________j) a ___________ measures earthquake

6. Briefly explain the difference between the following (10 marks)a) Fundamental rights and directive principlesb) bonafide and malafidec) BOLT & BOTd) Limited tender an d open tendere) Concurrence and sanction7. The following personalities have been newsworthy. Briefly state the reason ( 10 marks)a) E Sreedharanb) INDIRA Nooyic) Barack Obamad) J K Rowlinge) Sunita Williamsf) Kiran Mazumdar Shawg) Dalai Lamah) Ratan Tatai) Asif Ali Sardarij) Hillary Clinton

SECTION B MAX MARKS 100This section contains two parts A & B Attempt four questions taking any two from eachAll questions carry equal marks of 25 each1. What is the need for separate audit by representatives of comptroller and auditor general with effective internal auditing within the system, can c& AG Audit can be dispensed with discuss in detail giving pros and cons.2. Write short notes on any fivea) Konkan Railway Corporationb) Canons of Financial Proprietyc) Delegation of powersd) reappropriationse) Charged and voted expendituref) Railway Boardg) Dedicated freight corridor

3. In the present set up of Indian railways what are the different “FUNDS” In brief describe the nature of each fund and their operation. Briefly discuss “CAPITAL FUNDS”

4. How is the “operating ratio” calculated? What the limitations of this ratio in assessing the financial viability of the railway. What are your suggestions to bring down the operating ratio of Southern Railway?

5. “Railway finances were separated fro general finances primarily to secure stability for civil estimates by providing for an assured contribution from railway revenues and also to introduce flexibility in the administration of railway finances, is this concept still relevant today. Discuss relative advantages and disadvantages.

PART B

1. What is the purpose of “accounts office balance sheet. Briefly indicate the nature of debit and credit entries. What action would be taken for realisation of old outstanding?

2. Write short notes on any fivea) Zero based budgetingb) Suspense headsc) Apportionment of earningsd) M & P Programmee) Approximate account currentf) Railway Act3. What is “appropriation accounts” annexure J is an index of the efficiency of the accounts department. Discuss how we can on southern railway minimise the number of instances brought under annexure J4. In the existing systems, the closure of accounts take considerable time. Even then the booked expenditure do not reflect the actual and correct picture. Critically examine the procedure of monthly, quarterly and annual closing and give your suggestions for improving the existing system. Also indicates whether approximate account current should continue5. “Traditional Budgeting is functionally oriented and accounting oriented but not result oriented. Zero based budgeting is an improvement over traditional budgeting” dicusss this statement in detail in the context Indian railways and also explain how zero based budget can be applied for revenue budget (i.e. working expenses).

LDCE QUESTION PAPERS YEAR WISESOUTHERN RAILWAY12TH JUNE 2008PAPER IITOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS CARRY EQUAL MARKS

PART IFINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50) ATTEMPT ANY TWO OUT OF QUESTIONS 1 TO 4

1 In the context of railway operations, explain the cost of joint costs. What is the basis on which such costs are apportioned among various services?2. Write short notes on any five (maxi marks 5 each)a.) Uneconomic Branch Linesb.) Out of Turn WorksC) Special Limited TendersD) Throughput Enhanced WorksE) Terminal ChargesF) Orange Book and Pink BookG) Specific Fuel Consumption

3. What is meant by productivity test and how it is applied to new projects? Do they serve the purpose as intended?4. Highlight the importance of Sensitivity Analysis in evaluating investment proposals. How would you apply this to a proposal for a new line project?

PART IIMANAGEMENT ACCOUNTING (MAX MARKS 50) ANSWER ANY TWO QUESTIONS OUT OF QUESTIONS 5 TO 8

5. Define Break Even Analysis how it is calculated and what are the uses of Break-Even Analysis as a management tool6. Write short notes on any five:a) Management AuditB) Profit Volume RatioC) Wagon Turn AroundD) Variance AnalysisE) Net Tonne Kilometres

F) Standard Costing7. What is meant by financial ratios illustrate any two ratios can operating ratio be taken as a financial ratio give reasons8. Discuss in detail the concept of performance of budgeting and its application in railway working

PART III MAX MARKS 50Important answer any two out of questions 9 to 12 or any two out of questions 13 to 16

PART III A9. What is meant by apportionment of earnings how is it done in respect of goods earnings of through traffic?10. What is traffic suspense what are the items that constitute traffic suspense give your suggestions to reduce traffic suspense on Southern Railway?11. Write short notes on any fivea) Leave Not DueB) Staff Benefit FundC) Foreign Service ContributionD) Supernumerary PostE) Ex Gratia PaymentF) Special Casual Leave12. (a) Briefly describe the organisational set up of the statistical departmentAnd(b) Define the followingi. Engine Hoursii. Gross Tonne Kilometresiii. Route Kilometresiv. Occupation Ratio

PART III BWORKSHOP STORES ACCOUNTS AND GENERAL EXPENDITURE13. discuss how the POH of a Locomotive is worked out and explain how direct and indirect costs are taken into accounts14. (a) what is stock adjustment accounts(b) What are the various items adjusted through this accountC. Who is the competent authority to sanction the clearance of balance under this head15. What are the essentials of a good inventory control system? Discuss ABC analysis and its advantages16. Write short notes on any fivea) Completion Estimates and Completion ReportsB) Risk and CostC) Non-Schedule ItemsD) Final Location Survey

E) Fall Clausef) EFT and ECS APRIL 15, 2010

SOME IMPORTANT QUESTIONS FOR APP IREM 3A

TRAFFIC ACCOUNTS1. Traffic book and its parts2. Cash in transit/stores in transit3. Elements of passenger classification4. Objects of traffic accounts office5. Role of TIAs in preventing leakage of revenue6. Accounts office balance sheet7. Traffic suspense8. Dynamic pricing policy9. FOIS10. COIS11. UTS -12. Sundry earnings13. Journey of traffic earnings from station to cash office and accounts at RBI/Nagpur14. Apportionment of traffic earnings15. Terminal charges16. Pilgrim tax17. Non issued ticket NI statement18. Traffic classification19. Wagon turn round20. Withdrawal from station earnings21. Various types of frauds22. Maintenance of ROB/RUB23. Way lease charges

GENERAL EXPENDITURE1. Surveys2. Estimates: A. Check Of Estimates3. Tenders- Global, LT, SLT, ST,4. Contracts And Agreements5. Measurement Book6. Contractor’s Ledger And Check Of Contractor’s Bills7. Works Registers And Revenue Allocation Registers8. Material At Site Accounts9. Deposit Works10. Sidings – Private11. Maintenance Of Land And Buildings12. Completion Report13. Objectionable Item Register14. Labour Pay Sheets

15. Initial Records At XEN’s Office16. Duties Of Works Accountant17. Revised Classification18. Various Funds – Capital, OLWR, DRF, DF , CF, RSF, SRSF19. Parliamentary Control Over Expenditure20. material modification

GENERAL EXPENDITURE SHORT NOTES1. Feasibility Report2. Techno Economic Survey3. Departmental Expenditure4. Divisional Schedule Of Rates5. Financial Propriety6. Late And Delayed Tender7. Tender Committee8. Terminal Tax9. Earnest Money Deposit And Security Deposit10. Deposit Miscellaneous Receipts / Expenditure11. Muster Sheet12. Completion Statement13. Exchequer Control14. Final Financial Review15. August Review16. Revised Estimate17. Final Modification18. Final Grant19. Demands For Grants20. Budget Order21. Works Programme22. Pink Book23. Ballast24. Buffer Stock25. differentiate between want of estimate/excess over estimates26. Differentiate between want of sanction/excess over sanction27. Performance guarantee bonds28. Bank guaranteeBOOKS1. Distinguish between appropriation accounts and approximate accounts2. Plan heads and revenue heads3. Revenue and Capital PUs4. Various funds in railways DRF, DF OLW-R, Capital and Capital fund5. Differentiate DATC/DATD and TWFA6. Remittance transactions and transfer transactions7. RBI and PSB suspense8. Features of Focal Point9. Reconciliation of Cheques and bills

10. Deposits11. Suspense heads for revenue, capital, traffic, workshop, stores and gen accounts12. Annexure to appropriation accounts – what is annexure J13. Internal audit and audit checking14. Apportionment of earnings15. Demands for grants 03-13, 1-2, 14-1616. Allocation structure – capital and revenue17. Parliamentary control18. Structure of Govt accounts19. Link heads between finance and commercial accounts20. Half yearly arrear report21. Debt head report22. Debit/credit scroll23. Appropriation accounts and Annexure to24. Focal point25. Link cell26. BUDGET1. Distinguish between gross budget and net budget2. Performance budget and the performance units3. Integrated budget, deficit budget4. ZBB5. Capital budgeting in railways – RSP,FWP and M&P6. Financial reviews7. August review8. FM/Final Modification9. Budget grant10. Proportionate budget grant11. SL/ISL12. Controllable PUs13. Budget order14. Cash estimates/requirement/cash authorization/15. Cash budgeting16. COPPY17. RE/BE18. Revised estimates/revised grant19. Operating ratio20. Voted and charged expenditure21. PEI

STORES ACCOUNTS1. ABC analysis2. Inventory control3. Stock verification4. Stock adjustment accounts

5. Purchase accounts6. Stores suspense7. LC opening8. MAC –9. Computerization of stores accounts10. Purchase order/ indent/stock and non stock11. Types of tenders12. Distinguish late and delayed tender13. Role of finance member in stores tender committee14. Purchase policy15. Survey committee16. Combined receipt cum issue note17. EOT18. Sources of supply19. How the tender system has ensured the transparency in Govt transactions?20. Turn over ration21. LD22. EMD and SD23. SFC24. EAR/AAC Quantity vetting25. DGS&D and import policy26. AIC27. CFI28. FOR destination29. Receipt note30. Lorry challans31. Surplus stores/ dead surplus32. Rate / running contract33. Minima and maximaWORKSHOP ACCOUNTS1. GA Cards Tally sheets – time Records SN2. Reconciliation of time records with financial records3. Job costing4. On costs general on cost, shop on cost and proforma on cost5. Role PCO and allowed time in workshops6. AHR - SN7. Labour suspense - SN8. What is a work order? Essential features of WO system types of work orders9. List out the various documents related to production in shops10. Make or buy decision in railway workshop11. WMS debit / credit sides, how to keep it efficient12. Out turn statements are the monthly progress card of a workshop13. Accountal of labour and stores in the WGR SN14. Compare CLW and CRS patterns of incentive schemes15. Modernization, ISO, Total Quality control, green licensing16. Idle time - SN

17. Costing system for POH, production and process18. RCS of Loco POH19. Batch costing in Production Units - SNESTABLISHMENT1. LPC2. MOD3. OI REGISTER4. Elements of internal check5. Cadre/lien6. BOS7. Scale check register8. FSC9. Railway recoveries and non Railway Bodies (NRB)10. Civil grants (HBA, MCA, Cycle, fan)11. Staff cost on deputation12. PRIME and AFRESPENSION & SETTLEMENT1. Qualifying service2. Dies non3. DCRG4. Family pension5. Enhanced family pension6. Exgratia pension7. NPS wef1.04.20048. PPO/PPA9. RELHS10.

Introduction

Material Management is concerned with providing the drugs, supplies and equipment needed by health personnel to deliver health services. The right drugs, supplies and equipment must be at the right place, at the right time, and in the right quantity in order that health personnel deliver health services. Without proper material health personnel cannot work effectively, they feel frustrated and the community lacks confidence in the health services and unless appropriate materials are provided in proper time and are required quantity, productivity of personnel will not be up to expectation.

Inventory control

Inventory control it is an important aspect of material management.  If the level of inventories goes up the carrying charges also increase but the procurement cost decreases. On the other hand, if we have a smaller inventory, turn-over is greater requiring lesser carrying charges but more of procurement costs, as orders have to be repeated more often. By inventory control we could find out the optimum quantities to be stocked so that the two costs, and therefore the total costs are kept at the minimum.

Inventory control is basically a scientific system which indicates as to what to order, when to order, and how much to order, and how much to stock so that purchasing costs and storing costs are kept as low as possible.

 ABC analysis

ABC analysis is the analysis of the store items cost criteria.  It is a simple approach, which avoids being penny wise and pound foolish. Of the various techniques, ABC classification is the most important technique. The cost of each item is multiplied by the number used in a given period and then these items are tabulated in descending numerical value order. It will be seen that first 10% of items approximately account for 70%, the next 20% for 20% of value and the last 70% account for 10% of value.

It has been seen that a large number of items consume only a small percentage of resources and vice- versa. A – Items represent the high cost centre, B items represent the immediate cost centres, and C- items represent low cost centres. A very close control is exercised over A items while less stringent control is adequate for those in the category B, and less attention for category C.

By concentrating on controlling A- items, and to a lesser degree on B items, it will be possible to control the inventory quiet effectively both in the way of cost control and lessening the risk of ‘stock out’. Since A items are of the highest value and are required in large numbers they could be purchased more frequently and the others, B & C items less frequently. In so far as inventory control is concerned the following guidelines will help in keeping the system optimum (i.e. Healthy balance between financial constraints and purchase of required quantity of materials)

A-    Items: on

1. Tight controls

2. Rigid estimates  of requirements

3. Strict and close watch ( monitoring)

4. Safety stocks should be low

5. Management of items should be done at top management level.

B-    Items

1. Moderate control2. Purchase based on rigid requirements

3. Reasonably strict watch and control

4. Safety stocks moderate

5. Management be done at middle level

C-    Items

1. Ordinary control measure2. Purchase based on usage estimates

3. Controls exercises by store keeper.

4. Safety stocks high

5. Management be done at lower levels.

Rate of consumption:

Close study of each item from the point of view of movement of store or consumption rate is a strong tool for proper inventory control. The items can be classified into:

1. Fast moving2. Slow moving

3. Non- moving

4. Obsolete

An understanding of the movement of items helps to keep proper levels of inventories by deciding a rational policy or reordering. This method is based on the fact that some stock items have a much higher annual usage value than others. This after doing a cost analysis, stock items are separated into three classes with the following characteristics.

Class               Number of items                                 Rupee value in items

A                     10% of total items                                             70%

B                      20% of total items                                             20%

C                     70% of total items                                             10%

Steps in computing A-B-C analysis: procedure of A-B-C analysis

First we are trying to prepare a list of items and calculate their annual usage in rupees. This can be obtained by multiplying the quantity ( number of units) of the item consumed in one year by its unit price.

Arranging all these items in the descending order of their individual dosage in rupees. That means the first item in the list will now show the maximum annual usage in rupees, the second item the second maximum, the third item the third maximum and so on. After having done this the total of annual usage in rupees is put at the bottom of  the list.

Those items which together form about 70% of the total annual usage may be total annual usage may be categorized as A items. Similarly. Items which contribute the next 20 to 25 % of the aggregate are listed as B items. The rest which contributes 5 to 10% of the total percentage of annual usage are called C items.

Placing of the orders on the basis of this classification.

Example: The company has 10 items mentioned in the table .

Table: 1 A-B-C analysis usage in rupees

Items Annual usage units

Unit cost in rupees

Annual usage

Rs: (2)×(3)

Ranking

 

1 2 3 4 5

101

102

103

104

105

106

20,000

30,000

10,000

500

50,000

8000

0.25

0.20

0.10

0.30

0.20

.05

5000

6000

1000

150

10000

400

4

3

6

9

2

8

107

108

109

110

60,000

700

9000

50

0.40

1.00

0.50

2.00

24000

700

4500

100

1

7

5

10

Total     Rs: 51,850  

Table :1 shows a representative ABC analysis where 10 items have been studied and annual usage extended by unit cost to get annual usage in rupees.

Table: 2 A-B-C  ranking

Ranking Item Annual usage

Rs.

Cumulative annual

usage Rs.

Cumulative percentage

Category

1

2

3

4

5

6

7

8

9

10

107

105

102

101

109

103

108

106

104

110

24000

10000

6000

5000

4500

1000

700

400

150

100

24000

34000

40000

45000

49500

50500

51200

51600

51750

51850

46.28

65.57

77.14

86.78

95.47

97.39

98.14

99.51

99.81

100.00

A

A

B

B

C

C

C

C

C

C

 Table 2 shows the ranking and assignment of A, B and C categories of items.

Table 3: Summary of A-B-C analysis:

Class Item % of Rs: (per Cumulative

items group) percentage of Rs.

A

B

C

107,105

102,101

109,103,104

106,108,110

20

20

60

34000

11000

6850

65.57

21.21

13.22

Table 3 shows a summary ABC analysis showing that 20% of the items represent 65.57 % of annual usage 20 percent of the item represent 21.21% of annual usage and 60% of the items represent only 13.22 % of annual usage.

A items are ordered more frequently and I small quantities ( i.e. few weeks requirements) while C items are ordered just once or twice a year to obtain the entire year’s requirement. Without A-B C analysis, the ordering policy of an undertaking may be to order all items once a quarter and position would be somewhat represented  by: TABLE 4

Table 4:

Category No. of orders per year

Annual requirement in Rs:

Quantity ordered each time in rupees

Average inventory in Rs.

A

B

C

4

4

4

40,000

4000

400

10000

1000

100

5000

500

50

TOTAL       5550

The average total inventory in the above case is 5550 and adding 20% carrying cost the total inventory cost works out to be 5550+ 1110= Rs: 6660. Now , if A-B-C analysis is applied the ordering policy would be different , thought the total number of orders placed during the year is the same as before.

Category No. of orders

per year

Annual requirement

in Rs:

Quantity ordered

each time in rupees

Average inventory

in Rs.

A

B

C

10

5

1

40,000

4000

400

4000

800

400

2000

400

200

TOTAL       2600

Average total inventory is now Rs: 2600 and adding 20% inventory carrying cost the total inventory cost works out to be 2600+ 520= 3120, which is 3540 lower than the corresponding cost in the first instance.

VED ANALYSIS

ABC analysis does not tell anything about the criticality of the items. This is an important variant in patient care services. Based on the estimation of the time length for which non availability can be tolerated, there are three categories. The stores when subjected to analysis based on their criticality can be classified into vital, essential and desirable stores. This analysis is termed as VED analysis.

1. Vital: items without which treatment comes to standstill: i.e. non- availability can not be tolerated.

2. Essential: items whose non availability can be tolerated for 2-3 days, because similar or alternative items are available.

3. Desirable: items whose non availability can be tolerated for a long period. Although the proportion of vital, essential and desirable items varies from hospital to hospital depending on the type and quantity of workload, on an average vital items are 10%, essential items are 40% and desirable items make 50% of total items available.

Although not included in scientific VED analysis, in some public organizations which are static or inefficiently managed, there is a peculiar category of ‘U’ items which can be grouped as unnecessary. These unnecessary items get purchased due to the following reasons.

a)      Thoughtless continuation of previous purchase.

b)      Indifferent attitude towards hospital formulary

c)      Fear of change

d)      Poor supervision and control

e)      Unfair practice due to vested interest.

The vital items are stocked in abundance; essential items are stocked in medium amounts, and desirable items we stocked in small amounts. By stocking the items in

order of priority, vital and essential items are always in stock which means a minimum disruption in the services offered to the people.

It should be realized that vital- V items and A items are not the same. All the vital items are not expensive and all the expensive items are not vital. Domestic examples of salt and matchbox proves that though these items are vital, they are not expensive, similarly microwave oven and air conditioning unit are expensive, but they are not essential.

It is possible to conduct a two dimensional analysis taking into consideration cost on one hand , i.e. A,B,C categories, and critically VED on the other. Findings of ABC and VED analysis can be coupled and further grouping can be done to evolve a priority system of management of stores:

Coupling matrix model

                                                Cat I                Cat II                           Cat III

                                                  V                      E                                   D

                        A                       Av                   Ae                                Ad

                        B                        Bv                    Be                               Bd

                        C                       Cv                    Ce                                Cd

An example for the coupling matrix model for equipment between criticality and cost

  V E D

HDefibrillator

          1

X-ray machine

          2

Air- curtains

         3

MVentilator

         4

Electric cautery

           5

Ultrasonic wash machine

            6

LOxygen regulator

         7

Patient trolley

           8

Electronic BP machine

            9

NB: 1-9 is cell no                       Matrix module: criticality Vs cost

 Cell 1 contains vital and high cost items like defibrillator. It must be noted that a material manager has to comprehensively supervise category 1 items since an item may be a low cost one but critical for patient care. ( oxygen regulator)

Category I items: these items are the most important ones and require control by the administrator himself.

Category II items: these items are of intermediate importance and should be under control of the officer in charge of the stores.

Category III items: these items are of least importance which can be left under the control of the store keeper.

The grouping will essentially depend upon the strategy of management and the environment of functioning. However these simple techniques can be effective in material management system.

 Items with high criticality (V), but required in small quantity (A) should receive highest priority. Items with low criticality (D) and which are required in big quantity should receive least priority.

Conclusion

A thorough understanding and use of the techniques of materials management would help in ordering the supplies when needed, controlling their use, keeping them safely and in working order, and also motivating the personnel in the best use of equipment and drugs. This also prevents chances of non availability of equipments and drugs as being out of stock of these reduces the usefulness of the hospital system.

References:

1. Kulkarni G R. Managerial accounting for hospitals. Mumbai: Ridhiraj enterprise; 2003.

2. Ghei P N. Selected reading in hospital administration. New Delhi: Indian hospital association. 1990.

3. Pai P. Effective hospital management.( 2 nd edn).  Mumbai: the national book depot; 2003

4. Kumar R& Goel SL. Hospital administration and management. Vol 1 ( first edn).New Delhi: Deep & deep publications;

5. Gupta S& Kanth S. Hospital stores management, an integrated approach.( First edn). New Delhi: Jaypee brothers; 2004.

6. Basavanthappa B T. Nursing administration. ( Ist edn). Newdelhi: Jaypee brothers medical publishers (p) ltd; 20

How to do FSN/FNS analysis

By doing FSN analysis materials can be classified based on their movement from inventory for a specified period. Items are classified based on consumption and average stay in the inventory. Higher the stay of item in the inventory, the slower would be the movement of the material

F – Fast MovingS- Slow MovingN- Non movingSometimes the terms FNS is also being used, where F – Fast MovingN- Normal MovingS- Slow Moving

There following steps in doing the FSN analysis

Calculation of average stay and the consumption rate of the material in warehouseFSN Classification of materials based on average stay in the inventoryFSN Classification of the material based on consumption rateFinally classifying based on above FSN analysis.

Process

Let’s take 10 materials for analysis. Following is the analysis of SKU01. Period of analysis is 15 daysCalculation of consumption rate and average stay of the material in the inventory

Opening Balance : 50

Average stay of the material = Cumulative No of Inventory Holding Days/( Total quantity received + Opening Balance) =1161/115 =10.09 Days

Consumption Rate = Total Issue Qty/Total Period Duration =46/15 =3.06 Nos/Day

Now list down the materials with average stay and consumption rate

Now Carry out the FSN analysis on the basis of Average Stay only as below in MS Excel as below by sorting down in descending order of Average stay. Every company has its policy for defining FSN . Here FSN has been taken as F--10%, S-20%, and N -70%

Now carry out the FSN classification only on the basis of consumption rate   similarly as above 

Now carry out final classification by combining both as under

mm

Pareto principleFrom Wikipedia, the free encyclopedia

Jump to: navigation, search The term "Pareto principle" can also refer to Pareto efficiency.

The Pareto principle (also known as the 80-20 rule,[1] the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.[2][3]

Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.[3]

It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients". Mathematically, where something is shared among a sufficiently large set of participants, there must be a number k between 50 and 100 such that "k% is taken by (100 − k)% of the participants". The number k may vary from 50 (in the case of equal distribution, i.e. 100% of the population have equal shares) to nearly 100 (when a tiny number of participants account for almost all of the resource). There is nothing special about the number 80% mathematically, but many real systems have k somewhere around this region of intermediate imbalance in distribution.

The Pareto principle is only tangentially related to Pareto efficiency, which was also introduced by the same economist. Pareto developed both concepts in the context of the distribution of income and wealth among the population.