BYVINAYAK RAO , I.R.A.S.DY. CAO(C&P)CCGWESTERN RAILWAY

OVERVIEW OF STORES ACCOUNTS

PURCHASES BY I. R.

1998-99 RS. 9114 CR.1999-00 RS. 9015 CR.1998-99 RS. 8562 CR. INDEGENOUS1999-00 RS. 8601 CR. INDEGENOUS1998-99 94% INDEGENOUS

PURCHASES1999-00 95.4% INDEGENOUS

PURCHASES

INVENTORY T.O.R.

INV. TOR = VALUE OF BALANCE STOCK

– ISSUES DURING THE YEAR

–YEAR TOR–1998-99 10%–1999-00 10.22%

ORGANISATION AT RLY. BD. LEVEL

S .O .

D .D .

D IR

D .D .

JT. D IR

E X . D IR E X . D IR E X . D IR

A D D . M E M B E R (S TO R E S )

M E M B E R (M E C H .)

ORGANISATION AT ZONAL LEVEL

A C O S A C O S

S S O S S O

D Y . C O S I D Y . C O S II

C M M C M M

A C O S A C O S

D Y C O SD E P O T

C M M

C O S

ASSOCIATE ACCOUNTS

A O / F U E L

S A O /IC

A O / S TO R E S TE N D E R S

S A O / S F

A O / S TO R E S B IL L S

S A O / S A L E S

D Y . C A O (S TO R E S )

F A & C A O (W S T)

F A & C A O

FUNCTIONS OF STORES DEPT.PURCHASE, ISPECTION, CUSTODY, ISSUE OF RLY.

STORESSTANDARDIZATIONCONDUCT PURCHASES IN MOST EFFICIENT AND

ECONOMIC MANNERINVENTORY MGT.COMPILATION OF STORES BUDGET IN CONSULTATION

WITH ACCOUNTSSATISFY PUBLIC ACCOUNTABILITY AT ALL STAGES OF

TRANSACTIONS[ PURCHASE, ISSUE, SALE]

FUNCTIONS OF A/CS DEPT.COMPLETE AND INDEPENDENT

AUDIT OF STORES TRANSACTIONSFUNCTIONS OF ASSOCIATE

FINANCIAL ADVISORMAINTAINING

ACCOUNTAL&PASSING BILLSCOMPILE MONTHLY STORES

ACCOUNTS AND PERIODICAL RETURNS

STOCK VERIFICATION

IMPORTANT TERMS

MOVABLE SURPLUSTHAT STORES

WHICH IS LIKELY TO BE ISSUED IN FUTURE

DEAD SURPLUSTHAT STORES

WHICH IS NOT LIKELY TO BE ISSUED IN FUTURE

IMPORTANT TERMS

STOCK ITEMSWHICH ARE

STOCKED IN STORES DEPOTS

N. S. ITEMSWHICH ARE NOT

STOCKED IN STORES DEPOTS

VETTING OF NON-STOCK INDENTS

REALISTIC ASSESSMENT KEEPING IN VIEW THE CANONS OF FINANCIAL PROPRIETY

SPECS SHOULD BE DETAILED AND UNAMBIGUOUS

USE BIS OR IRS SPECSSPECS SHOULD BE SUCH THAT THEY DO

NOT SUIT ONLY ONE PARTICULAR MANUFACTURER

CONTD.

FUNDS AVAILABILITYLAST PURCHASE RATEED/ST/CST/OCTROI HAS TO BE TAKEN

INTO ACCOUNTINDENTS > RS. 40,000 ARE VETTED

BY ASSOCIATE ACCTSINDENTS > RS. 2,000 ARE SIGNED BY

JAG OR HIGHER OFFICER

5 Rs OF PURCHASING

RIGHT QUALITYRIGHT QUALITYRIGHT PRICERIGHT DELIVERYRIGHT SOURCES

TYPES OF TENDERS

OPEN / LIMITED / SINGLE

FOR SAFETY ITEMS APPEARING AS RDSO’S APPD SUPPLIERS LIST OR GM’S APPD SUPPLIERS’ LIST

BULLETIN TENDERS

SCRUTINY OF TENDERSOPENING OF TENDERSCOMPARATIVE STT.DETAILS OF ED, ST/ CST, OCPACKING

CHARGES AND CALCULATIONSFIN. IMPLICATIONS OF OTHER

CONDITIONS E.G. QTY. DISCOUNTS, EARLY PAYMENT DISCOUNT, ETC.

LAST PURCHASE RATESCREDENTIALSPAST PERFORMANCE

CONTD.

CONSTITUTION OF T. C.

LATE OR DELAYED TENDERS TO BE REJECTED

UNSOLICITED OFFERS TO BE REJECTED

NEGOTIATION WITH L1 ONLY

.

SPLITTING

SPLITTING CAN BE RESORTED TO KEEPING IN MIND THE FOLLOWING:

VITAL AND CRITICAL NATURE OF THE ITEM

QTY.DELIVERY REQ.CAPACITY OF FIRMSPAST PERFORMANCE

I. R. S. CONDITIONS OF CONTRACT

RISK PURCHASEBOOK EXAMINATION CLAUSEFALL CLAUSELIQUIDATED DAMAGES

PRECHECK OF P. O. AND BILLS

PRE CHECK OF ALL P.O.s > RS. 40,000 IS COMPULSORY

COMPARISION WITH ORIGINAL OFFERS AND TC MINUTES

CHECK BILLS WITH REF. TO P.O. AND ALL THE SPECIAL CONDITIONS MENTIONED THERIN

PURCHASES (IMPORTED)

BILL OF LADING IS A DOCUMENT GIVING TITLE OF GOODS SIGNED BY A SHIPPING COMPANY OR THEIR AGENTS CONTAINING DECLARATION REG. RECEIPT OF GOODS( CARGO) CONDITIONS ON WHICH TRANSPORTATION IS MADE AND DELIVERY OF GOODS AT PRESCRIBED PORT

LETTER OF CREDIT

L.C. IS A BANK INSTRUMENT AUTHORISING THE (ISSUING ) BANK ON BEHALF OF THE PURCHASER(APPLICANT) TO PAY A CERTAIN SUM TO SPECIFIED SELLER(BENEFICIARY) PROVIDED THE SELLER SUBMITS THE DOCUMENTS AS PRESCRIBED IN THE LETTER OF CREDIT.

TYPES OF L. C.

REVOCABLE VS. IRREVOCABLE LC

CONFIRMED LC

TRANSFERRABLE LC

REVOLVING LC

STORES SUSPENSE HEADS

PURCHASES INDEGENOUS P 7110PURCHASES IMPORTED P 7120PURCHASES DGS&D P 7130SALES REALISATION P 7140STORES P 7160STOCK ADJUSTMENT P 7180MISC. ADV. (CAP) P 7310

SINT (DTR)

STORES ISSUED DURING A MONTH BUT NOT RECEIVED IN THE SAME MONTH BY THE RECEIVING DEPOT ARE NOTED DOWN IN THE REGISTER OF SINT(DTR)

SINT (PURCHASE)CREDITS TO PURCHASE A/C ARE

POSTED FROM R.O. POSTING OF SUCH ROs WILL BE DONE

IN PRICE LEDGERS ONLY WHEN THE MATERIAL IS RECD. AND ACCEPTED IN ITS NUMERICAL LEDGER.IN SUCH CASES ACCOUNTAL IS DELAYED BEYOND THE MONTH IN WHICH THERO IS ISSUED.ALL SUCH ITEMS OF THIS TYPE ARE POSTED IN SINT (PURCHASE).

STOCK ADJ. A/C

PT. I

DIFFERNCE IN STOCK- DIFFERENCE BETWEEN GROUND BAL.& BOOK BAL.

PT. II

DUE TO REVISION OF RATES ON ACCOUNT OF DEPRECIATION

STOCK ADJ. A/C (CONTD.)

PT. IIIALL DIFFERNCES

BET BOOK VALUE AND VALUE REALISED IN AUCTION SALES, LOSSES ON A/C OF LEAKAGE, THEFT, OBSOLOSCENCE, ETC.

REVIEW OF STOCK ADJ. A/C

TWICE A YEAR ON 31.3 AND 30.09

OUTPUTS FROM EDP CENTRE

LIST OF STOCK MASTERLIST OF VOUCHERS WHERE BAR CHANGES

BY > 10 %DEBIT CREDIT SUMMARY- STORES

MONTHLY SUMMARYDIVISION WISE ISSUES TO REVENUE

DEMANDSTRANSACTION REGISTERCONTROL CLASS LEDGER

RETURN STORES

STOCK ITEMSIF ITEM IS NOT

OVERSTOCK CREDIT IS GIVEN AT BAR

FOR SECOND HAND MATERIAL AT 1/2 THE VALUE

FOR ALL NON STOCK ITEMS AT APP. SCRAP RATE

DISPOSAL OF SCRAPRECEIPT OF SCRAPPROXY AUCTIONFORMATION OF LOTSLOT REGISTERVALUATION OF SCRAP[NON FERROUS

SCRAP R.P. IS VETTED BY HQ A/CsSALE THROUGH AUCTION, TENDER,

TENDER CUM AUCTION, DIRECT SALESSTAFF SALE

CONTD.

EMD UE UPTO RS. 2000@ 25 % OF VALUE FOR RS. 2000- 10,000@10 % OF VALUE FOR RS. > RS. 10,000TIME PERIOD FOR PAYMENTFOR < RS. 1 LAC 10 DAYS FOR > RS. 1 LAC 20 DAYSFOR > RS. 2 LACS INSTALMENTS CAN

BE GRANTED BY C O S

DIRECT SALE

FREIGHT @5% INCIDENTAL CHARGES @ 2 %DEPARTMENTAL CHARGES @ 12.5

%OVER AND ABOVE.

INVENTORY CONTROL

OBJECTIVES:TO AVOID BLOCKING OF CAPITALMINIMISE CARRYING COSTMINIMISE HANDLING COSTMINIMISE OBSOLESCENCE

TECHNIQUES OF I. C.

A B C ANALYSISAA CATEGORY- ANNUAL ISSUES >

RS. 5 LACSA CATEGORY - ANNUAL USAGE BET.

RS. 50,000 & RS. 5 LACS[NOT> 3 MONTHS REQ.]

B1 CATEGORY - BET. RS. 25,000 TO 50,000[NOT > 6 MONTHS REQ.]

CONTD.

B2 CATEGORY ANNUAL USAGE BET. RS. 10,000 BUT < RS. 25,000[ NOT MORE THAN 6 MONTHS REQ.]

C CATEGORY - USAGE < RS. 10,000 P.A.[NOT > 12 MONTHS REQ.]

V.E.D. ANALYSIS

VITAL ITEMS ARE THOSE WITHOUT WHICH EQUIPMENT WILL NOT FUNCTION

ESSENTIAL ITEMS ARE THOSE WITHOUT WHICH EEFFICIENCY WILL BE AFFECTED ADVERSLY

DESIRABLE ITEMS ARE THOSE WITHOUT WHICH EQUIPMENT WILL STILL WORK.

LAST BUT NOT THE LEAST, ….

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