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Tuesday, October 20, 2020

IRFA - Indian Railway Financial Adjustments

IRFA - Indian Railway Financial Adjustments

 

Short notes question in 2016 Books & Budget (with books)

 

     Para 869 of Indian Railway Finance Code Volume one. 

 

     Relates to the Receipt / Charges on account of Adjustments carried amongst Zonal Railways on account of A) Repairs  B) Maintenance & C) Depreciation in respect of Rolling Stock (Locos & Coaches only) of One Zonal Railway used in other Zonal Railways.

 

     In respect of transactions/adjustments of Wagons, IRCA - Indian Railways Conference Association will take care of it.

 

     Such mechanism i.e., IRFA, is necessitated to perform Zonal Railway as a "Profit Centre" to calculate the "Operating Ratio" in its truest sense to assess their (Zonal Railway) performance.

 

      Chargeable to SMH - Sub Major Head No. 7 (erstwhile Demand No.09)  -09-750-33

 

     Zonal Railways are responsible for raising charges on other Zonal Railways.

 

     Basis for calculation - Locos :

 

                         i.            Unit cost based on the total engine hour on outage basis (i.e. from the time it leaves from the shed & till it returns to the shed) earned by the engines on the using Railway.  

                            ii.            It should  be ensured that the constituent elements of the debit viz., repairs and maintenance, and depreciation charges are shown under relevant heads.

 

     Basis for calculation - Coaches:

 

                                                          i.            The credit/debit adjustments should be worked out on the basis of kilometers earned through rakes/passenger coaches running on more than one railway system. Vehicle kilometers  in respect of through coaches should be worked out on the basis of the working time table periods and the rake links.

 

                                                         ii.            Ensured  that the three distinct constituent elements, viz., Repairs, maintenance and Depreciation charges shown separately. Unit cost should be worked out by the Zonal Railways separately for each of these constituent elements per vehicle kilometre and the individual rates should be applied.

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