Object of financial reporting
• To familiarize the stakeholders i.e. parliament, public, Audit for
certification of accounts of expenditure/ receipts.
• To provide Management Information System.
• Authority responsible for preparing of accounts- General Manager
and FA&CAO of Accounts Deptt of the zone, Chairman & Financial
Commissioner in Railway Board.
• Framework of accounting: Govt. Accounting Rules and Railway’s
financial rules
• Books section of each accounting units complies the accounts
Sources of IR
Sources of IR
Loans from Gol and others
Gross budgetary support
Diesel cess
Gross traffic Receipts
Sources of
Receipt
Internal Resources
Misc. receipts
Borrowing through IRFC
Funds raised by RVNL
Extra budgetary Receipts
Investment through Wagon
investment scheme
Investment through ppp etc
Contribution including those
from state govt. and user
entities.
Flow of accounting information in Railways
• Area of accounting in terms of commercial & Govt. accounting
• Generation of paid/ receipt vouchers and adjustments having
allocation for accounting, use of accounts head
• Monthly Compilation of information in accounts in terms allocation
code
• Monthly compilation of information in accounts in terms of grantwise, revenue, Capital expenditure major/ minor head by
summarizing of information from allocation
• Monthly Compilation of monthly accounts by each accounting units
• Consolidation of monthly/ annual account at Zone level and at end
Ministry of Railways' level
• Annual accounts- Financial as well as Appropriation Accounts
Finance Accounts
• 728 A-I -The Finance Accounts are compiled in accordance with the
requirements of Government Accounts, duly classified in accordance
with the heads of accounts prescribed for Government accounting.
The transactions brought to account in the books of the railway under
the various railway heads of account are, after the closing of accounts
for each financial year, summarised in the form of a handy
compilation called the 'Finance Accounts". The compilation comprises
(I) Abstract accounts of the various railway heads together with
detailed schedules, and (ii) Appendices. Six printed copies of the
compilation should be submitted so as to reach the Railway Ministry
not later than the 20th September
Finance Accounts
• Account current: revenue and works
expenditure and revenue & capital
receipts
• Railway Revenue receipts
• Capital at charge Statement
• Balance Sheet Annexure
• Profit and Loss Account
• Debt head Report
• Balance Outstanding under Suspense
• Statement of transfer without
financial adjustment
• Statement of loans and advance
granted to cooperative societies
• Statement of investment of Central
Govt. to cooperative societies
• Depreciation Reserve fund
• Development fund Account
• Pension Fund Account Accident
Compensation Safety and Passenger
Amenities Fund
• Results of Stock Verification and
Revaluation of Stores
• Railway Catering Profit and Loss
Account
• Statement of income tax/ service tax
• Statement of calculation of dividend
payable and subsidy due from General
Revenue
Appropriation account
• 402 F-I The statements which are prepared for presentation to the Parliament (Public
Accounts Committee), comparing the amount of actual expenditure with the amount of
Grants voted by Parliament and, Appropriations sanctioned by the President, are called
the “Appropriation Accounts”. The Appropriation Accounts are signed both by the
Chairman, Railway Board, as Principal Secretary to the Government of India, Ministry of
Railways, and by the Financial Commissioner Railways, as Secretary to the Government
of India, Ministry of Railways, in financial matters and transmitted to the Director
General of Railway Audit-II who has been entrusted by the Comptroller and Auditor
General of India with the duty of reporting on these accounts.
• This DG (RA-II) site at Railway Board & assists the C&AG and Deputy C&AG (Defence,
Communication and Railways) in certification of the Appropriation Accounts and Finance
Accounts of Railway Certificate for Audit of Railway Accounts signed by DAI (Railways).
• Appropriation Accounts of Railways form a part of Union Appropriation Accounts
certified by C&AG.
Appropriation accounts-ORDINARY WORKING EXPENSES (Revenue Expenditure)
• 01-Expenditure on Railway Board
• 02-Misc. Expenditure (General)- Survey,
RDSO, Audit, RRB, RCT
• 03-General Superintendence & services
on Railways
• 04-Repairs & Maintenance of Way &
Works
• 05-Repairs & Maintenance of Motive
Power
• 06-Repairs & Maintenance of Carriages &
Wagons
• 07-Repairs & Maintenance of Plant &
Equipment's
• 08-Operating Expenses-Rolling Stock &
Equipment
• 09-Operating Expenses-Traffic
• 10-Operating Expenses-Fuel
• 11-Staff Welfare & Amenities
• 12-Misc. Working Expenses & 12
N-Suspense
• 13-Provident Fund, Pension &
other Retirement Benefits
• 14-Appropriation to Funds MAppropriation to Fund
• 15- Dividend payable to General
Revenue
Asset Acquisition, Construction and replacement
• Expenditure from central govt. borrowing : Capital and railways own
generated fund like Depreciation Reserve Fund, development Fund,
AC21 Special Project Fund (ACSPF), Open Line Works Revenue, Capital
Fund, Railway safety Fund, Special Fund, Special Railway Safety fund
Appropriation Accounts (Store Account)
Other statements of App. a/cs
• Statement of unsanctioned expenditure (Annexure A)
• Under charges detected by Accounts or Audit (Annexure 'B')
• Statement showing Remission and Abandonment of claims to Revenue
(Annexure 'C')
• Review of expenditure on important Open 'line Works and New
Construction
• Working Expenses and other revenue charges relating to Strategic Lines
(Annexure 'E')
• Statement of credit/ recoveries (Annexure 'F')
• Statement of Losses etc. (Annexure 'H')
• Irregular re-appropriations (Annexure 'I')I
• Important misclassification and other mistakes detected (Annexure ‘J’)
• Statement of defects in budgeting (Annexure K)
Integration into union accounts:
• List of major minor head
• 1001 – Indian Railways – misc. Receipts
• 1002- Indian Railways – commercial line revenue
Receipts (Abstract X,Y &Z)
• 1003- Indian Railways strategic line revenue
Receipts (Abstract X,Y &Z)
• 3001- Indian Railway policy formulation,
Direction, Research and other Misc. Organisation
(grant No.1 & 2)
• 3002- Railway's revenue expenditure on
commercial line (grant No.3 to 14)
• 3003- Railway's revenue expenditure on strategic
line (grant No.3 to 14)
• 3004 Indian Railways-Open Line Works (Revenue)
• 3005 Payments to General Revenues (G.15)
• 3006 Appropriation from Railway Surplus
• 3007 Repayment of Loans taken from General
Revenues
• 5001- Railway's Capital expenditure (grant No.16) on
commercial line (grant No.16)
• 5002- Railway's Capital expenditure (grant No.16)
on strategic line (grant No.16)
• Suspense & other heads
• 007610 – Loans to Govt. servant
• 008009- GPF/ State Railway Provident Funds
• 008445- Railway Deposits
• 008552 -Railway advances
• 008660- Suspense accounts (Railways)- PAO, AG,
PSB,
• 008677- RIB
• 008789- Adjustment accounts with Railways
• 008999- Cash balances
• 0020- Income tax from corporation tax
• 0021- Taxes on income other than corporation tax
• 0041- Service tax
• 2016- Audit
Thanks