CHAPTER   VII 

PURCHASE  PROCEDURE   :   DIRECT PURCHASES BY THE   ADMINISTRATION 

701.    Agency for Supply.—The Agency of the Stores Department will be used in ordering the supply of all Stores required for the use of the railway, whether for stock purposes or for immediate consumption on works. The Controller of Stores will be the only officer through whom purchases may be made and he will have complete authority to insist upon executive officers drawing stores from stocks, until they are used up before indenting for new stores.   He will scrutinize every indent and decline to purchase, where he considers that the existing stock is sufficient and suitable and his orders shall be final unless he is overruled by the General Manager. 

The General Manager may, however, delegate the powers of the local purchase to the Divisional Railway Manager subject to the provisions as laid down in Para 711-A-S. 

702.    Exceptions.—As an exception to the above rule, the following articles which are supplied in large quantities may, subject to approval by competent authorities, be ordered by the Departmental Officer concerned. 

Class of Stores Officer empowered to arrange supplies
I. Under Railway Board's Contracts: —

(i) Rails and Fish-plates-,

(ii) Sleepers all kinds: —Cast Iron, Pressed Steel, Prestressed Cement Concrete and Wooden and Steel Turn Out Sleepers. ) Chief Engineer

(iii) Points & Crossings (including Cast Manganese Steel Crossings).

(iv) Specified Track Laying/Renewal Machines and Track Maintenance Machines.
 

 

 

Chief Engineer

 
II.  Through Chief Mining Adviser, Railway Board :—

(i)   DELETE(Authority: Railway Board’s letter No. 98/RS(G)/779/10 dated 23.07.02--acs no.13 page no.95

(ii)  DELETEDD(Authority: Railway Board’s letter No. 98/RS(G)/779/10(CS) dated 30.05.2001 --acs no.12 page no.95

 

 

  

The General Manager of a Railway may sanction additions to the above list to suit local requirements of his administration.


 703.    Agency for Purchases.—Purchases of Materials for Railway are arranged either :— 

(i)    By the Railway Board or directly by the Railway Administration, or 

(ii)   Through the agency of other Government Departments, viz.:— 

(a)  The Directorate General of Supplies and Disposals —in cases of articles mentioned in Para 801-S and referred to in Appendix VI to this Code, amended from time to time. 

(b)   The Controller of Stationery and Printing—for Stationery and Printing Stores. 

(c)  Government Medical Stores Depots—for Medical Stores. 

Note.—(a) Railway administration are empowered to make direct purchases of medical stores as indicated below :— (i)  Stores not stocked by the Government Medical Depots—full powers of direct purchase. 

(ii) Stores stocked by the Government Medical Stores Depots—Items of stores, indented on the Medical Stores Depots in the prescribed manner, which they are not able to supply within a month and for which non-availability certificates have been issued by the supplying depot may be purchased directly from the open market. 

(iii) In emergencies, whether stores are or not stocked by the Medical Stores Depot—Chief Medical Officers of Railway Administrations are authorised to make direct purchase of medical stores upto Rs. 500/- in each case subject to the restriction that this power is not re-delegated to any lower authority. 

(b)      The power under item (i) and (ii) above may be exercised by the Chief Medical Officer or the Controller of Stores accordingly as the procurement of Medical Stores is entrusted to the former or the latter by the Railway Administration. 

704.    Purchases by the Railway Board.—The Railway Board have reserved to themselves the right to call for tenders and let Contracts for the Supply of the following articles :— 

(i) Locomotives,   carriages,   under frames,   wagons and   certain   nominated   spares/ components therefore.

 (ii) Wheels, tyres and Axles, (iii) Coal, including steam coal, small and soft coke. 

The Railway Board also enter into long term Contracts, from time to time for the Supply of the following Articles to Railways:— 

(i) Rails, fish-plates and points & crossings. 

(ii) Sleepers all kinds—cast iron, pressed steel, prestressed cement concrete and wooden— including pig iron for conversion into sleepers and steel turn out sleepers. 

(iii) Specified track laying/renewal machines and Track Maintenance Machines, (iv) Specified items of stores/equipment for Railway Electrification and Signalling. 

705.    Purchases arranged by the Administration.—The administration may purchase all articles other than those the purchase of which is arranged by the Railway Board or is obligatory through the Directorate General of supplies and Disposals and/or other Government Departments as prescribed by Rules issued by the Railway Board from time to time. 


706 Direct Purchase of Directorate General of Supplies and Disposal items.

Except in respect of items of stores for which the Directorate General of Supplies & Disposals has entered in to Rate or Running contracts, the Controllers of Stores may not use the agency of the Directorate General of Supplies & Disposals for any purchase up to Rs. 1 lakh and under in each case. In emergencies where non-acquisition of the article concerned is likely to hold up work, purchases limited to the quantity required to tide over the emergencies may be made, the controllers of Stores exercising these powers upto the limit of Rs. 2 crores for each item. In respect of purchases exceeding Rs. 2 crores but not exceeding Rs. 50 Crore, sanction of the General Manager should be obtained. The Controller of Stores will also decide when for what quantity and in what manner such emergency purchases shall be made.

 

Note. -1. The limit of Rs. 1 lakh mentioned above for direct purchase applies to each case or to each tender containing similar or inter-connected articles purchased at any one time and individual demands should not be intentionally split up to come within the limit mentioned above viz. Rs. 1 lakh.

 

2. All purchases made by the indentors direct, in terms of the above, the value of which exceeds Rs.2,000/- should be notified in the Indian Trade journal with full particulars, name of the stores, date of purchase, quantity, price paid, name of suppliers and whether the stores is imported or indigenous and in the latter case whether cottage and small scale industry product This may be done in the form used by the Directorate General of Supplies & Disposals. Further, total value of all direct purchases upto Rs. 2,000/- which are not published in the Indian Trade Journal, should be reported to the Directorate General of Supplies and Disposals quarterly in regard to purchases made during the preceding quarter beginning with quarter ending 30th September, 1958. The total value should exclude purchases of special items like foodgrains, coal etc. which am not normally purchased through the Central Purchase Organisation.

(Authority Board's letter No. 2008/RS(G)/779/9 dated O6 -02-2009)…acs no. 28 page no. 97

707.   In respect of items of stores which are normally purchased through the Directorate General of Supplies and Disposals and which are covered by Rate or Running Contracts of that Department, the Controller of Stores may, at his discretion, make direct purchases upto limit of Rs. 1 Lakh in each case and not exceeding Rs. 5 Lakh in the aggregate in each case in any one year if the stores are urgently required or can be more conveniently obtained locally or from a nearer station. In emergencies, the same powers as shown in para 706-S may be exercised.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009).acs no. 29 page no. 97

708.    Modes of Direct Purchases.—The Controller of Stores will arrange purchases on behalf of the Administration either through :— 

(a)  Advertised (Open) Tender (special or annual) ; 

(b)   Limited Tender; or 

(c)   Single Tender. 

As may be suitable for the particular purchase, in accordance with the instructions contained in Chapters III and IV on 'Purchase Policy Rules' and 'Contracts'. 

709.   Bulletin and Daily Tenders.—He may also obtain supplies of stores costing less than Rs. 10 Lakh (other than those obtained on annual tender or through the Directorate General of Supplies and Disposals or proprietary articles or stores of special character such as loco and carriage and wagon duplicates), through the medium of Weekly Bulletin or daily tender which are a modified form of the "Limited Tender". These tenders need be sent only to those firms, which are on the approved list for such tenders. In case of daily tenders separate calls for different classes of stores should be issued when necessary. Firms may be allowed ten to fifteen days from the date of issue of the call for tenders in which to submit quotations and provided rates are reasonable, those quoting early delivery may be given preference.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009)acs no. 30 page no. 97

710.   Deleted

711. Local Purchases of Materials of Small Value.The Controller of Stores may also make local purchases of items of small value, both stock and non-stock, upto Rs. 1 Lakh in each case, subject to the condition that in the case of stock items, the purchases are made only where: -

(i) The normal annual recoupment quantity does not exceed Rs. 1 Lakh in value; or

(ii) The stock of the item is precariously low and the item is urgently required;

and that the quantity is not deliberately reduced with a view to bringing the purchase within the scope of this provision. He will make no purchase without satisfying himself that the price paid is reasonable. For items costing upto Rs. 10,000/-, he may obtain single quotations, but for items costing over Rs. 10,000/-he should obtain quotations from more than one firm and maintain a proper record of such quotations. The current rates quoted should invariably be compared with the last purchase rates and any large differences checked up before making local purchases.

The powers referred to above or other power of local purchases of stores delegated to the Controller of Stores may be redelegated to the Depot Officers, in consultation with the Financial Adviser & Chief Accounts Officer to the extent considered necessary in each case.

Such purchases may be paid for in cash from imprest cash.

Note. -1. No non-stock article for which a standard patterns exists, should be purchased, if it could be manufactured by the Railway.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06 -02-2009)acs no.31 page no.98

711-A. Local Purchase of Stores by DRM's, CE's(C), CSTEs(C), CEEs(C) of Railways, R.E., M.T.P. (R)s and other Officers not attached to the Stores Department.—The DRMs, CEs(C), CSTEs (C), CEEs (C) of Railways RE and MTP(R)s may, however, subject to the provision of para 701-S make local purchase of items of stores other than those covered by rate/running contracts entered into by the DGS & D and Stationery Stores, upto the limit mentioned below :— 

(i) Purchase of non-stock items.  - Upto Rs.  10,000/- per item but not exceeding Rs. 1 Lakh in the aggregate per month.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)…acs no. 32 pageno. 98

(ii) Purchase of Stock items.—In the case of emergency upto Rs. 5,000/- per item but net exceeding Rs. 50,000/- in aggregate per month in consultation with the conamed Accounts Officer. 

The above powers may be redelegated by the Divisional Railway Managers to Officers under them to the extent considered necessary subject to the overall limit of powers prescribed for the Divisional Railway Managers. 

Note.—Provision regarding prior consultation with Associate Finance may be waived in cases of purchases by the Assistant Engineers in emergencies where they are head-quartered at stations at which the advice of associate finance is not available. 

In regard to the local purchases of rate/running contract items of stores, powers to the extent considered essential may be delegated to the Divisional Railway Managers within the overall annual aggregate limit for each item for the entire Railway. 

(iii) The following officers may make local purchase of stores (other than DGS & D's rate/running contract items and stationery stores) to the extent and in the manner indicated against each :— 

(a)  CMEs, Dy. CMEs,Dy.CEs, Dy. CEs(C), Dy. CSTEs, Dy. CSTEs (C), Dy. CEEs and Dy. CEEs (C) holding independent charge of workshops. 

(Authority: Railway Board’s letter No. 79/FS(I)/PW/7/4 dated 25.3.92) ---acs no.1 -( page no.99)

(i) Purchase of non-stock items.—Upto Rs. 2500/- per item but not exceeding Rs. 25,000/- in aggregate per month in consultation with the concerned Accounts Officer. 

The above powers may be redelegated by these officers to Works Managers under them to the extent considered necessary. 

(b)  Works Managers holding independent charge of workshops : 

(i) Purchase of non-stock items.—Upto Rs. 1,000/- per item but not exceeding Rs. 10,000/-"   per month  in aggregate .

                                                                                                                                                                             Purchase of stock items.—In emergency, upto Rs. 100/- although the figure of Rs. 100/-is as per ACS I95-S it appears there is typographical error, and it should be Rs. 1,000/- per item but not exceeding Rs. 10,000/ in aggregate per month in consultation with the concerned Accounts Officer.

(c)  XEN, DSTE, DEE, DME etc. who do not work directly under the control of the Divisional Railway Managers:— 

(i) Purchase of non-stock items.—Up to Rs. 1,000/- per item but not exceeding Rs. 10,000/-per month in the aggregate. 

(ii) Purchase of stock items.—In case of emergency up to Rs. 1,000/-per item but not exceeding Rs. 10,000/- per month in the aggregate, in consultation with the concerned Accounts Officers. 

The above officers may redelegate these powers to the Assistant Officers under them, if any, to the extent considered necessary in consultation with the concerned Accounts Officers. 

Note.—1. For items costing more than Rs. 500/- quotations from more than one firm shall be obtained. 

2.  No non-stock article for which a standard pattern exists, should be purchased, if it could be manufactured by the Railway. 

3.  Local purchases should invariably be done through Super Bazzars to the extent stocks available there.   In such cases a single quotation up to Rs. 2,000/- per item can be accepted. 

711B. Opening of Current Accounts against Cash Imprest by Stores Officers.—Stores Officer's at Major Stores Depots holding cash imprest for emergent purchases may open and operate "Current Accounts" with the Departmental Bankers or with other Nationalised Banks at places where Departmental Bankers do not have their paying branches, to deposit the unspent balances of cash including recoupments and to make disbursements therefrom for local purchases through cheques, subject to the following conditions :— 

(a)  Current Accounts should be opened only in cases where the imprest amount is more than Rs. 10,000/- each. 

(b)  Current Accounts should be opened against the official designation of the imprest holders and not in their personal names. 

(c)   The amounts of imprest should be reviewed half-yearly so that these are kept at the minimum  in all cases.  Atleast one recoupment of expenditure in a month should be made compulsory and with this end in view, the amount of imprest should be fixed on the basis of 50 per cent of the average monthly expenditure on emergent purchases in each case.  

(d)   Recoupments should be made through Crossed cheques issued by the F. A. & C. A.O. in favour of the imprest holder by his official designation only and not in favour of his personal name. Such cheques shall be deposited in the current accounts. 

(e)   It should be ensured that the imprest amount is utilised only for making payments for emergent purchases permissible under extant rules and not for making normal purchases which should be made through submission of Bills in the usual manner. 

(f)   AH deposits into and withdrawals from the Current Accounts should pass through a subsidiary book and Imprest Accounts should be rendered with reference to the transaction recorded in that book. 

712. Accountal of Local Purchases.—Purchase lists (S. 712) in quadruplicate should be prepared in the form shown below by the Depot Officer for Stores locally purchased. After acceptance of material, one copy should be retained as office copy, one sent to the Accounts Officer, Stores, alongwith cash vouchers for recoupment of imprest, one to the Controller of Stores and the last (after posting in the numerical ledgers) to the Stores Accounts Officer for posting the priced ledgers. Care should be taken to see that only one class of stores is included in each list. The Controller of Stores should check the lists received by him to see that only the class of items mentioned in paragraph 711 are purchased locally; he should also examine from the frequency and quantities of purchases of any item whether it is not advantageous to enter into annual contracts for such items. 

Form No. S. 712 

PURCHASE LISTS OF LOCAL PURCHASES 

Depot.........................................Class............................ Date of Purchases....................................   

Firm's Name Voucher P.L. No Quantity Unit Rate Value Posted in Depot Ledger on Closing Balance
No. Date Rs. P.
               

Total...........................................................................................................  

Rupees (in words).......................................................................................... 

Certified that the above purchases have been made in the terms of the provisions of paragraph 711 of the Indian Railway Code for the Stores Department and the Stores have been put into stock.    

..........................

Depot Officer

Date..............................  

PURCHASE PROCEDURE  

713.   Essential Points.—The procedure adopted for the ordering, inspection and receipt of stores should provide inter alia for :—  

(i) The Accounts Officer, Stores being furnished directly by the officer placing a Purchase Order with a signed copy of the Purchase Order sent to the supplier.  

(ii) The Officer of the Stores Department receiving the stores supplied, furnishing to the Accounts Officer direct a Receipt Note, i.e. a duly receipted copy of the suppliers invoice after it has been posted in the numerical ledgers.  

Note.—Where inspection of supplies of stores is not carried out in the depots in which the stores are stocked, and/or where the accounting work is decentralized, as extra copy of the Receipt Note is called for in order to enable the Inspecting Officer accounting the stores to notify simultaneously the Depots concerned and the Accounts Office.  

714.    Purchase Orders.—Purchase Orders, i.e., orders on the firms for supply of stored, may be placed either by the Controller of Stores or by the Depot Officer of the Main Depot, a form similar to the one shown below being used for the purpose.  

Form No. S. 714  

STORES DEPARTMENT—PURCHASE ORDER  

(Stock Items)

........................Railway  

Card Code 

1-2

P.O. No.

 3-16

Sl. No. 

17-18

Date 

19-24

Supplier's Code 

25-29

Supplier's State 

30-31

Tender No. From :
Tender Type 32                 Opened on 33-38 To

With reference to your Quotation Number.........................................................  

dated..............................please deliver to the consignee mentioned below, the under mentioned  articles free of incidental charges subject to Indian Railways Standard Conditions of Contract, latest edition, and General Condition of Contract for the Stores Department of this Railway and the addendum thereto applicable to this contract:—    

DESCRIPTION QUANTITY (Figures)  
 
                      (Words)  
RATE (Figures) (Words) RATE UNIT  
TERMS OF DELIVERY  
F.O.R. / FREE AT:  
CON  CODE 39-43 WARD

 44-47

STOCK

 NS48

DELIVERY DATE 49-54    

OTHER TERMS AND CONDITIONS :  

1.   To be Delivered/Despatched to..  

2.   Delivery must be completed by.  

3.   Booking Station...................  

4.   Bill Passing Officer................  

5.   BUI Paying Officer................  

Please acknowledge Receipt.  

INDENTOR DEMAND No.......................    

       

 Date............................ 

For & on behalf of the President of India.  

 

Item PL No.

55-62

Cat.

63

Quantity in NL Unit

64-72

(3 Decimal)
BDL

No. 73-74

SEQ

79

Rate per NL

Unit

19-25

(in Paise)

NL Unit
Code
26-27
Req. Reg. Date

28-33

Allocation

34-41

Total Value

(Paise)

42-50
F. Ex. (Paise)

51-59

F. Ex. Code

60

Time Pref.

61

Risk Purchase

62

No. of 

Consignees

63

No. of Items

64-65

 

No. of Del.

66

LT/SL

67-68

Nature of IDUS

69

BDL No.

73-74

SEQ 79

2

Copy to.—  

1.    D.C.O.S./A.C.O.S.                          3.    F.A. & CAO (SAB)                 5.

2.    E.D.P. (Stores)                              4.    F.A. & CAO (C)                     6.

 

PAYMENT TERMS

 

                           ........................% payment will be made on proof of despatch i.e. clear R.R./Receipted  

Delivery Challan after Inspection and balance...........................% on proof of acceptance of supply  

by the consignee, within..................days.   As..............................% payment is to be made on proof of despatch, Receipted Challan ..................% bill alongwith the despatch documents including Inspection Certificate should be sent   to Accounts with a despatch advice to the consignee.  

                         Please note that while claiming...............% payment you are to ensure that the following  

certificate is to be furnished by you, failing which payment will not be made by the Paying Authority.

   "I/We have personally examined and verified and do hereby certify that goods in respect of   which payment is being claimed have been actually despatched under R/RNo........................   dated.....................and further that these goods are the exact materials indicated in Challan   No..............................dated.....................and covered by Inspection Certificate No............dated..........................

I/We held myself/ourselves personally responsible for correctness of this statement".    

Address. ............................                                                                                                                                  Tenderer's signature &

             ...........................                                                                                                           Date. ....................

 

  STORES DEPARTMENT—PURCHASE ORDER ANNEXURE  

Card Code

1-2

P.O. No.

3-16

Sl.  No.

17-18

Date

19-24

Supplier

Code

25-29
Suppliers State
30-31
Tender Type

32

Opened on

33-38

Con. Code

39-43

Ward

44-47

Stock

NS 48

Delivery Date

49-54

Description Quantity              Rate                       Unit
Consignee Name (in words)
Item PL No. 55-62 Cat. 63 Quantity in NL Unit (3 Decimals) 64-72  BDL No. 73-74 SEQ 79 Rate Per NL Unit (in paise) 19-25 Unit Code 26-27
Req. Reg. Date

28-33

Allocation

34-41

Total Value (Paise)

42-50

F. Ex. Rs. (Paise)

51-59

F.Ex. Code
60
Time Pref.

61

Risk Purchase

62

No. of Consignees

63

No. of Items

64-65

No. of Del.

66

LT/SL

67-68

Nature of IDUS

69

BDL

NO.

73-74
SEQ

79

 

                                                                                    For & on behalf of the President of India 

715. In the case of direct purchases by the Railway Administration, six copies of the purchase order should be prepared for distribution to all concerned including those mentioned below. One copy will be retained as office copy and will form the basis of the correspondence file of the Controller of Stores.  

One copy will be sent to the firm.

One copy alongwith Drgs., relevent specifications etc. should be sent to the Inspecting Officer to whom the supply is consigned to pass material on receipt.  

One copy each will be sent to the depots receiving the supply and where the goods are to be finally stored.  

One copy will be sent to the Accounts Officer, Stores, for passing the supplier's bills.  

One copy to Electronic Data Processing Centre.  

Where stores are to be inspected at suppliers premises prior to despatch, a copy of the purchase order shall also be sew to the nominated Inspection Agency.  

Where the Purchase Order is placed by the Depot, the Depot Officer should retain the copy intended for his record, send one copy to the Controller of Stores and distribute remaining copies in the manner indicated above.  

716.    In the case of supplies through the Directorate General of Supplies and Disposals, additional number of copies of the Purchase Order-should be prepared for sending one copy to the Pay and Accounts Officers, Directorate General of Supplies and Disposals Department and two copies to the Directorate General of Supplies and Disposals, Inspection Circle.  

717.    If inspection of the materials is arranged at the point of manufacture abroad, a copy of the purchase order, together with copies of relevant specifications and drawings shall also be sent to the Inspection Agency nominated for this purpose.  

718.    The Supply Form.—The details of the procedure employed for accounting for purchases of stores differ to some extent, according as :—  

(a)   the inspection of stores is carried out in the depot in which the stores are intended to be stocked, or  

(b)   is centralized and is carried out in a spot other than the depot in which the stores are to be stocked.  

718-A. Supplier's Challan.—Supplying firms will submit in duplicate a challan along with the materials supplied by them. A copy of the challan should also be forwarded to the Purchase Officer.  

After receipt of the materials, one copy of the challan duly acknowledged for quantity only (and not quality) will be returned to the supplier with a remark that a proper receipt will be granted in due course for such quantities as may be found acceptable.  

719.    Combined Receipt and Issue Note.—On correct receipt of material, the receiving officer will prepare the receipt and issue note in the Form 719-S.   On the Railways where inspection of stores is not centralised, the form shall be prepared in six parts which shall be distributed in the manner indicated in Para 723.  

On the Railways where inspection of stores is centralised, the form shall be prepared in seven parts which shall be distributed in the manner indicated in Para 729.

RECEIPT   AND   ISSUE  NOTE  

Receipt Note Inspecting Depot  

 

CD Code
P.O./A.T NO. & Date Stocking Depot Ward VR No. Date Allocation
Name of Suppliers & Address Supp. Code Receipt Note No. Date  
    P.L. No. Cat. Unit
Description Rate Accepted Qty. in  Figure Quantity in Word
  Value    Rs. P.
Qty. Challaned Coded P.O./A.T. NO.
Inspection Note No. & Date Terms of Delivery Freight to Pay/ Paid Date of Receipt
Weighment Regd.  No. & Date Rate in Figure Rs. P. Unit of Rate Rate in Words
R.R. No. Date Wagon No./Name of the Steamer  
Due Date Delivery Date of Actual Supply
Orders of C.O.S. Penalty Advice

To be Filled when Quantity Invoiced and Quantity Accepted are not same

Qty. Invoiced Qty. Received Qty. Rejected Qty. Accepted Remarks
Credit Note. No. Date Wagon  No. Dispatched To.

 

 

Received the accepted Quantity correctly and the Rate Certified.  

............... ..........................    ..........................................             ....................................                                      Supplier      Despatching Official    Receiving Official of Stocking Depot         Depot Inspecting Officer

   

Reverse of the Form (719-S)  

Letterpress on reverse of the form is different on each part except Part II (Supplier's copy) which has no letter press at all.  

Reverse of Part I  

The stores have been despatched to...............................  under Railway Receipt No..........................................dated.......... 

with reference to his recoupment memo No./Requisition No.......... .................

dated...............................

Dated........................                                                                                      ..............................................

                                                                                                                           Inspecting & Receiving Officer

 Reverse of Part-III  

The stores have been despatched............................................................. under Railway Receipt  No................................................dated............. with reference to his recoupment Memo No/Requisition No...............................  dated..............................  

 

 

For use in Accounts Office  

1.  Calculated by.................................................................................................................................................  

2.  Checked by...............................................................on....................................................................................

3.  Compared with Purchase Order by....................................on.................................................................................  

4.  Posted in purchase register by..........................................on................................................................................ 

5.   Bill passed by............................................................on....................................................................................

......................................................... 

Signature of the Accounts Clerk responsible.

 

Reverse of Parts IV, V, VI & VII  

The stores have been despatched to..................................................................................................................  under Railway Receipt No.................................dated..............................with reference to his recoupment Memo No./Requisition No..............................dated...............  

Certified that the above stores have been received from the.....................Controller of Stores, Inspection & Receipt and these have been duly posted in the numerical ledger (top card) for Price 

List No............................    

Description of Stores Shortage or damage Remarks
   

..........................

Depot Officer

The proposed letter press on reverse of Form 719-S is slightly different from the provisions contained in Paras 727 arid 728. The changes made are indicated below :—  

(1)  The letter press on reverse of Parts I, IV, V and VI slightly modified to incorporate RR No. instead of Credit Note No.  

(2)  Letter press on reverse of Part III modified to :—  

(i) delete the portion relating to delayed supplies as the Receipt Notes arc issued only after delivery period is extended and letter of Extension invariably indicates the penalty, if any, to be levied.  

(ii) Contents of Para 728 have been merged.

720.    Deleted.  

721.    Part Supplies.—Particulars of part supplies, if accepted, should be clearly noted in the Purchase Order Form (S. 714) so that a check can be exercised against excess or short supplies.  

722.    Deleted.  

723.    On Railways where inspection of stores is not centralized, the five parts of Form 719-S will be distributed by the Inspection and Receipt Section as follows :—  

Part I will be retained in the Receipt and Inspection Section as Office copy.  

Part II will be sent to the suppliers as an acknowledgement for the correct receipt of material and for submission to the Account Office with the bill for the value of the material supplied. The Accounts office will not settle a bill unless supported by this form.

 

Part III will be sent direct to the Accounts Office where it will be used for posting the priced ledgers and the Purchase registers and finally for comparing it with Part II (received in support of the Supplier's bill) to guard against possible unauthorised corrections of rates or quantities in Part II.  

Part IV (together with Part V) will be handed over to the Ward stocking the material, after obtaining acknowledgement for the material on Part I. The depot, after posting numerical ledger, will send it to the Accounts Office. In the Accounts Office, it will be compared with the corresponding Part III and endorsed with a remark to that effect. This check ensures that the quantities as extracted into stores Priced Ledgers are the same as those received in the stocking Depots and accounted for by them in their numerical ledgers.  

Part V will be the office record of the stocking ward.  

Part VI will be sent to the Purchase Officer concerned in the Controller of Stores Office.  

Note.— Wherever the Stores Accounts Office has been decentralised and a local unit of the office has been attached to Stores Depots the above procedure should be slightly modified as follows. Instead of Part IV being sent direct to the depot stocking the material, it should be sent to the Central Stores Accounts Office (at the headquarters of the railway) along with Part HI. The Central Stores Accounts Office should sent it to the Local Stores Accounts Office concerned, in support of the "Daily Summary of Credits to Purchases Account (S. 2808)". The depot should post its numerical ledgers from Part V (instead of form Part IV, and pass it on to the Local Accounts Office, instead of retaining it. The Local Stores Accounts Office should use Part V for posting priced ledgers, compare it with Part IV received from the Central Stores Accounts Office, endorse both parts with the remark that they have been compared and return Part V finally to the Depot Office for record.  

Remarks.—Minimum five parts of the receipt and issue note (Form 719-S) are required as explained above and only three copies as mentioned in Paras 719 and 723 will not suffice since as per the scheme contained in Para 723 neither the receipt and inspection section nor the stocking ward will have a copy, which is necessary for their record. Further it is not necessary to sent a copy of Receipt Note to Controller of Stores as the supply position will be available on the computer after the voucher is posted.  

724.    Deleted.  

725.    Deleted.  

726.    Deleted.  

727.    Deleted.  

728.    Deleted.  

729.    Distribution.—On Railway's where receipt and inspection of stores is centralised, the receipt and issue note (Form719-S) will be prepared in seven parts.   The procedure prescribed in Para 723-S will apply mutatis mutandis to distribution of the first six parts. Part VI will be sent to the stocking depot along with Parts IV &V and will be returned by the Stocking Depot after checking the correct receipt of material to the Officer-in-charge of the Inspection & Receipt Depot, in acknowledgement of the stores received.  

Remarks.—Same as Para 723-S. Further routing of Part III through Controller of Stores is not considered necessary as the question of penalty for delayed supplies must be decided in terms of extension of delivery period granted by the Purchase Officer, without which delayed supplies are not to be accepted.  

730.    Orders for Direct Despatch.—All non-stock items in general, and the following items in particular should generally be ordered for direct despatch to indenting officers :—  

(1)   Spare parts of the following non-stock items when obtained from the agents for the plant or passed by the Directorate-General of Supplies and Disposals.  

Oil Engines.  

Air-Compressors  

Pneumatic plant.  

Experimental steam and oil coaches.  

Electrical plant.  

Flood lights.  

Engineering plant.  

Scientific instruments.  

(2)   Stock items obtained on urgent requisitions for special work.  

(3)  Wagon-load lots of metals with a test certificate.  

Wagon load oils and paints passed by Directorate-General of Supplies and Disposals.  

Wagon load, Mangalore Tiles.  

Wagon load, C.I. pipes passed by Directorate-General of Supplies and Disposals.  

Wagon load, Pig Iron.  

Wagon load, Tar, Ashphlat, Road surfacing material.  

731.    Purchase of non-stock items.—Supply of any-Non-stock item that is required by an indentor should be arranged for in the following manner.  

732.    Submission of Requisitions.—Requisitions should be submitted to the depots assigned for that purpose by the Controller of Stores.  The requisition should be made out in duplicate in Form S. 1302, only one item being entered on each Form.  

733.    Scrutiny of Requisitions in Depot.—On receipt of a requisition for a non-stock item in a depot, it should be registered and forwarded to the ward-keeper, incharge of the ward stocking the class of stores mentioned in the requisition to ascertain if there is, any similar suitable stock item to offer as a substitute. Should there be any item considered suitable to offer, a reference should be made to the indentor. Subsequently, if it be found necessary to make a special purchase, the requisition should be endorsed to this effect and forwarded to the Controller of Stores, the date of despatch of the requisition being duly entered in the depot's Requisition Register (Form S. 1307). All such requisitions should be forwarded to the Controller of Stores within a reasonable period of receipt, unless delayed owing the reference having to be made to the Indentor.  

734.    Registration of Requisitions.—Requisitions, which are received from Store depots, or direct from indentors, should be registered in the Controller of Stores Office in a Requisition Register (Form S. 1307) by their original dates and not by the dates of receipt in the Controller of Stores' Office.  

735.    Directorate-General of Supplies and Disposals Items.—Requisitions of all items that have to be purchased by the Directorate-General of Supplies and Disposals should be separated and necessary Indents prepared in duplicate, one copy being retained as office record, and the other copy forwarded to the Directorate General of Supplies and Disposals.  

736.    Items Purchased by the Railway.—The same procedure of calling for tenders, etc. as for stock items should be followed.  

737.    " Forcing" of Stock Items.—The Controller of Stores should refer back to the Indentor if it is considered that a stock item may be used in lieu of a special item. If there are repeated demands for a particular non-stock item, the Controller of Stores should consider whether the item shall become a stock item and if it is found necessary, it should be entered in the price List for the Group.  

738.    Placing of Purchase Orders.—Generally, firms should be instructed to deliver materials to the assigned depots as far as possible. But heavy plant and machinery should in all cases be delivered direct to indentors.       

Purchase Order Forms (S.714), printed on coloured paper should be used for non-stock items. Copies of the purchase order should be endorsed to all concerned, including the following :—  

One copy to the firm, one copy to the Accounts Officer, one copy to the indentor, one copy to the nominated Inspecting Agency if inspection is to be carried out at firms premises prior to despatch and one copy for office record. When deliveries are to be made to an Inspection Depot, one additional copy of the Purchase Order should be prepared for the use of that Depot The number and date of the Purchase Order and name of the Firms should be entered on the Requisition Register (S. 1307) prior to the despatch of the Purchase Order.  

739.    Procedure for payment of supplier's bills in respect of direct delivery orders.—  

(a) In cases where the payment is made by the Indentor's Accounts Officer.—The supplying firms will submit one copy of the bill marked 'Original' and the railway receipt for the consignment directly to the consignee. Another copy of the bill marked "Duplicate, not for payment" shall be submitted to the Controlling Officer of the consignee.  

The Controlling Officer will maintain a consignee wise register of such bills and watch the return of the original copy of the bill from the consignee.  

The consignee after verifying the stores received by him with the relevant Acceptance of Tender/Supply Order/Purchases Order of which a copy would have been furnished to him will endorse a certificate for the quality and quantity received by him and forward the original bill to the Controlling Officer mentioning therein that the receipt has been entered in his numerical ledger and the entry initialed. Any discrepancy in quality or quantity of the stores received by him or the quantity rejected by him, shall be advised to the firm direct, endorsing a copy of his advice to the Controlling Officer and the Purchase Officer.  

The Controlling Officer on receipt of the original copy of the bill, will countersign and forward the same to the Accounts Officer for payment. Any entry to this effect should be made in the register mentioned above.  

The firm's bills should be paid promptly and as far as possible within two months from the date of despatch of the stores and in case the consignment is lost in transit, the consignee should inform the consignor that a claim within the prescribed period should be preferred.  

In case of unusual delay, the suppliers should be advised to bring the matter to the notice of the Divisional Superintendent or the Administrative Officer of the Department concerned, for which purpose the authority to be addressed should be clearly indicated in the Acceptance of Tender/Supply Order/ Purchase Order.  

(b)    In cases where the. payment is made by the Stores Accounts Officer.—The procedure prescribed above should be applied, mutatis mutandis, except that the Controlling Officer will forward the original copy of the bill, duly accepted, to the Stores Accounts Officer instead of to the Indenter's Accounts Officer.  

(c)    Where 90 per cent payments are made to firms against proof of despatch after inspection, the original Railway Receipt should be sent to the Accounts Officer responsible for payment along with 90 per cent bill advising the particulars of despatch to the consignees.   The Accounts Officer after passing the 90 per cent bill should pass on the original Railway Receipt to the Consignee for taking delivery of the consignments.   It should, however, be ensured that there is no delay in the Accounts Office in transmitting the original R/R to the consignee.   The; procedure for the payment of the 10 per cent bill will be as described above.

Note.—In the case of direct delivery stores chargeable to Works, Receipt Notes should be prepared by the Consignee in triplicate in form S. 739. One copy of the Receipt Note should be sent to the concerned Accounts Officer and anotherto the Executive Officer maintaining the Works Registers in terms of paragraph 1440 (A)-E and 1440 (B) E.  

Form No. S. 739  

Receipt Note Form  

No. 

To  

      The Stores Accounts Officer,  

       ---------------------------- 

Railway's Purchase Order No..................................................., dated.....................the  

under mentioned articles supplied by M/s....................................have  been  received by the  

undersigned:—  

Class & P.L. No. Particulars of articles Quantity Quantity in Words Quantity reed Value
         

                                                                                                                     -----------------------------------------

Signature of Railway Receiving Stores Officer  

*Prepared on the basis of Part II receiving stores of Form S-719-S.

 

PURCHASE OF STORES FOR EXPERIMENTAL PURPOSES  

740.    Requisitions.—Requisitions in Form S. 1302 for stores for experimental or trial purposes should be countersigned by the principal officer of the department or branch concerned in token of his sanction; otherwise, the requisitions should be returned to the indenting officer for completion in the above respect.  

Note.—Where the value of stores requisitioned for experimental or trial purposes is less than Rs. 1,000/-. Requisitions may be countersigned by the Addl. Heads of the departments.  

741.    Distinguishing letter for Price List Numbers.—A large letter "X" in red ink, indicating that the stores are for experiment, should be suffixed to the price list number in column 1 of the requisition form.   If no price list number exists, this letter "X" should still appear and a price list number should be allotted by the Stores Department.

 

742.    Scrutiny of Requisitions.—Before any purchase is arranged for, the Controller of Stores should ascertain whether the particular material asked for is not already available in stores depots and has not already been tried out and pronounced to be unsuitable.  

743.    Price Factor.—When the prices of experimental stores are appreciably more than that of the articles they are to supersede, the fact should be brought to the notice of the indentor, who should be asked to state the grounds on which the purchase and trial are justified.   Similarly, when analytical tests of such stores are necessary, the price, compared with the price of articles already stocked should be intimated to the metallurgist, who should certify whether the experimental article contains ingredients or qualities, which justify the higher price.  

744. Challans, Receipt Notes, & c, to be stamped 'A'.—Requisitions, Purchase Orders, Challans, Receipts Notes or other documents covering the material for trial should be prominently stamped with the letter "X" to indicate the nature of the stores. Any omission to do so should not be put forward by the consignee, nominated for carrying out the experiment/trial or by the depot which will receive the stores, as an excuse for not maintaining a sharp watch over the receipt of the article and its performance during the trial to ensure that these rules are carefully observed.  

745. Ledger Cards of Stores obtained for Trial.—Copies of the Purchase Orders for experimental stores should be forwarded to the consignee or the Depot Officer concerned with a special covering letter which should show all important particulars of the stores and the experiment it is intended for. In the Stores Depots the letter should be filed only under the initials of the Depot Officer after it has been initialled in token of knowledge of its contents by the Assistant Officer, Depot Store-keeper, Sub-Store-keeper, Ward-keeper and Ledger-keeper concerned and certified that the special instructions endorsed on the order, if any, and a remark that "This material is for trial and report" have been recorded on the numerical ledger card in red ink. Similar action will be taken by the consignee in cases where material is directly despatched to him.  

746.    Stocking Arrangements.—On receipt of the experimental stores, the depot should keep them entirely separate from other similar items. When issues are made a slip bearing the following remarks should be pasted on the issue note :—  

"This material is for trial and report. Please intimate result to the Controller of Stores through the proper channel".  

The endorsement should also be made on the Depot Transfer issue notes if the material is to pass to the indentor through more than one depot.  

747.    Record of Trials.—The Controller of Stores is responsible for maintaining a record of trials of such stores in manuscript Form No. S. 747 which should show the following information :—  

(a)  Description of material;  

(b)   Name of suppliers ;  

(c)   Special instructions regarding nature of trial and its duration ;  

(d)   Delivery period;  

(e)  Date material is received by Stores Department; (0  Dates on which position is to be reviewed ;  

(g) Final orders passed on the trial.  

The Officers conducting the experiments should furnish the Controller of Stores with relevant particulars to enable him to post columns (c), (f) and (g) of the record. The Controller of Stores should follow up all trials with reminders, until the final result of the trial is received and noted in the record of trials. He should see that the final reports on all experimental stores are conclusive and should also watch that no such stores are adopted in super session of the standard one in use until the department making the trial definitely proves their superiority, after taking into consideration the prime cost, life and maintenance charges.  

748. Orders on other Zonal Railways/Production Units.—Orders on other Zonal Railways/Production Units should be prepared on ordinary purchase order form (S.714) and distributed as under:—  

One copy for the office record.  

One copy to the railway from whom the stores are ordered.  

One copy each to the depots concerned.  

One copy each to the Inspecting officers concerned.  

One copy to the Accounts Officer Stores.  

One copy to the electronic data processing unit.  

Note.—1.  No rate shall be specified in these orders and the words "Book Rate" shall be inserted in the rate column of Form S. 714. 2.   Any modification in quantity, delivery, time, &c, made subsequently should be intimated to all concerned.  

Remarks.—To facilitate correct recording of dues and proper accountal of material on receipt it is necessary that these orders are prepared in purchase order forms and routed through E.D.P. centre, instead of preparing these on requisition form (S. 1302). Number of copies required will depend on number of consignees etc.  

749. On receipt of issue notes in triplicate for supplies from other Zonal Railways Production Units, Receipt Notes (Form S. 719.) should be prepared and distributed as usual except that Part II should be retained in the Controller of Stores' Office to enable the Transfer Certificate to be verified on receipt from the supplying railway. Two copies of the issue note, duly acknowledged, should then be returned to the supplying Railway. One will be retained as acknowledgement copy by that railway and the other submitted along with the Transfer Certificate for the cost of the stores.  

Remarks.—Paragraph slightly modified to delete reference to "foreign" railways and instead other Zonal Railways/Production Units has been inserted.  

750.    Deleted.  

751.    Deleted.  

752.    Deleted.  

753.    Deleted.  

754.    Deleted.  

755.    Deleted.  

756.    Deleted.    

INSPECTION AND RECEIPT OF STORES PURCHASED BY THE 

CONTROLLER OF STORES  

757. Inspection.—All stores purchased direct by the Controller of Stores should ordinarily be inspected by an Inspecting Officer of the railway. When, however, the Controller of Stores places an order for stores with instructions to despatch the materials directly to an Indentor, the Indentor is responsible for the inspection and for arranging for suitable tests to be carried out where he considers these necessary.  

758-A. Inspectorate of the Directorate General of Supplies and Disposals.—The Controller of Stores should also freely avail of the facilities provided by the Director General of Supplies and Disposals for inspecting and testing of materials, whenever this is required. In such cases, a request should be addressed to the Addl. Director General (Inspection), Directorate General of Supplies and Disposals who will arrange for the inspection. Form No. W.S.B. 65 (S) of that Department should be used for the purpose. A particularly useful facility is the Metallurgical Inspectorate of the Directorate General of Supplies and Disposals which is concerned with the products of Messrs Tata Iron & Steel Co., but it is also entrusted with the inspection of the subsidiary companies such as Indian Wire Products, Indian Cable Co., The Agricultural Implement Co. etc. The laboratory is equipped for all classes of metallurgical testing. The Directorate General of Supplies and Disposals levy departmental charges for inspection and testing in accordance with paragraph 2837-S.  

758-B. Controller of Stores can also avail of the facilities provided by Rail India Technical & Economic Services for inspection and testing of materials, whenever required.  

759.    Government Test House of the Directorate General of Supplies and Disposals at Calcutta.—All classes of chemical tests on coal, oil, paints, acids, etc., all classes of tensile, being, fatigue impact, etc., tests on materials such as draw hooks, screw couplings, pipes and metals from which these are made, all classes of tests on textiles, woven fabrics, thread and yarn, as also tests on cement, etc., are made in the Government Test House at Alipore, Calcutta. The Controller of Stores may also avail of facilities of this and other Govt. Test Houses whenever required at the charges mentioned in paragraph 2837-S.  

760.    Materials purchased Abroad.—The inspection of all materials purchased abroad (except articles of proprietary brands or of small value) offered for forward delivery should be arranged through Railway Adviser London wherever his offices exist or facilities for inspection are offered by him. In the absence of the facility of Railway Advisor, inspection of such materials may be entrusted to Rail India Technical Economic Services. C.O.S. could also use the services of the Inspecting Agencies like Llyods, JIC etc., if considered necessary.  

761.    Procedure of Inspection.—Stores should be checked with the standard specification or drawing on which the order is based. In the rare cases, where orders have been made to a sample a standard sealed sample shall be held by the Inspecting Officer, and stores accepted only if they are up to the standard sample.  

762.    Rejected Stores.—Rejected stores should be removed to a place set apart for the purpose to avoid any possibility of their getting mixed up with other stores. In a stores Depot, the Inspecting Officer should see that this is done in his presence.  

The supplier should be warned that such stores will lie at his risk and that he should arrange for their removal within 21 days from the date of issue of rejection memo. If the stores are not removed withing this period the Administration shall have the right to dispose of such stores as thought fit, at the contractor's risk and on his account and recover ground rent/demurrage charges.  

In cases where full or part payment for the Stores has already been made to the supplier, the rejected stores should not be delivered to them unless :—  

(i) The rejected supply is replaced by an equivalent quantity of acceptable quality ; or (ii) The supplier refunds the amount already received, which fact should be verified by the  

Accounts Officer concerned, or (Hi) The purchaser authorises the removal after taking adequate steps to safeguard the interests  

of the Government. Note.—(1) For contracts finalised by the Directorate General, Supplies & Disposals, this period should  

be taken as "fourteen days from the date of receipt of rejection memo". (2)  For stores where pre-inspection has been done at the supplier's premises/works before despatch and which are rejected by the Consignee, it has to be ensured that a joint inspection has been carried out by the consignee with the representative of the inspecting agency, before rejected materials are returned to the supplier.  

763.    When stores that have been despatched by rail are rejected the following procedure should be adopted:—  

(i) The supplier may take the rejected goods either at the station where they are rejected or  at the station from which they were sent. 

(ii) The supplier shall pay the carriage charges on rejected consignments at Public Tariff Rates from station of despatch to the station where they are rejected. If he elects to take   back the goods at the station from which they were despatched, the goods will be booked to him freight-to-pay at Public Tariff Rates.  

764.    Rejection Memo.—In cases where material is rejected, a rejection form (S-764) should be made out in triplicate by the receiving staff, an entry also being made on the back of the Purchase order (S.714) the rejection forms should be submitted with the challan or Invoice forms (S. 725 or S. 719) to the Officer-in-charge for signature.    One copy should then be forwarded to the Controller of Stores, and one retained as an office record.

No.  

  

Registered A.D. Final Rejection Memo  

Form No. S-764  

                                                    To

From.....................                                                                                    Messers................................. ...........................                                                                                    .............................................                                                                               

The following Stores supplied against P.O. No. (3-16)..................................................  

P.O.S.No........................(17-18)...............Date..................(19-24).....................Description     

of the item.........................................................rejected for the reasons noted against each of the item.  

Qty. Rejected Rej. Code Reasons of Rejection (Detailed) Type of Recovery Allocation Value
(30—41)   (42)        
(43—54)   (55)        
(56—67)   (68)        

Advance Payment Vide AB No...............................................................dt...............................................                   Quantity passed....................... ..........................  .Quantity short received. ...........................................

Replacement required/not required. .................................................................

Rejected materials of local firms will normally be delivered at the.....................Railway  

Stores Depot.............................................Firms are required to arrange collection within Fourteen days from the date of Rejection Memo failing which the Railways responsibility will cease and after that time they will remain at supplier's entire risk and if not removed before a further period of seven days, the railway shall have the right to dispose of such stores as deemed fit at the supplier's risk and account without further reference to them and to recover thereafter from the supplier's as ground rent or demurrage at the rate of Rs.........per day for consignments occupyting less that 2 cfts, or 50.802 Kgs. in weight and up to Rs........ per day for Articles bulkier or heavier than above.  

Rejected Materials of firm outside....................................if not removed within 21 days of the Sanction/Rejection Memo will be despatched to them by goods train freight to pay at Public Tariff Rate.     

*To be filled by Hd. Qrs./Depot Accounts Office.  

Assistant Controller of Stores (Inspection)  

Copy to:  

(1)    C.O.S..................................Railway  

(2)    Copy to F.A. & C.A.O............................   He will please recover the freight charges shown below :—  

R.R. No.........................................................................Dated.............................................  

From.....................................................................To........................................................  

Weight of Consignments............................................Freight paid................................................  

Weight of rejected stores............................................Freight to be recovered...................................  

Rupees (in words)..................................................................................................................  

(3)   II Copy to SSA II 

(4)    Copy to D.A.G.....  

(5)    Copy to D.O.I.......  

CODE DETAILS  

Code of Rejections :—  

(1)    Defective cannot be accepted (Materials not as per specification).  

(2)    Rejected due to belated delivery.  

(3)    Rejected due to leakage/breakage.  

(4)    Any other reason for which the firm is at fault.  

(5)    Any other reason for which the firm is not at fault.  

Type of Recovery :—  

(11)   Freight charges on rejected stores.  

(12)    Testing charges.  

(13)    Handling/Labour charges of Qty. rejected.  

(14)   Deptt. Charges.  

(15)    Incidental Charges.  

(16)    Value of rejected Qty.  

765. Rejection Register.—On receipt in the Controller of Store's office, of the Rejection Memo (S.764) containing the details of the rejected material, a gazetted officer should scrutinize the form and differentiate between the really serious cases and those of less importance, the former being entered in the Rejection Register (S.765) while the latter should be filed. This is an alphabetical register of commodities showing the names of firms who have been found to be unreliable in the supply of that particular commodity. The following form should be used for this register. If some firm's name has been recorded in this register in comparatively quick succession, the matter should be taken up with the firm.  

Form No. S. 765

 

REJECTION REGISTER

 

Group No.................................. 

Sheet No................................ 

Commodity..........................................

 

Purchase Order Description of Stores Quantity Offence Contract Sheet No. Officer's Comments
No. Weight
No. Date
           

 

 

766.    Check of Large Consignments of Materials purchased from Firms.—The purchasing railway administration should check with the invoices the contents of wagons of material purchased from firms on the arrival of the wagons at their destination. If the invoices are not available on the arrival of the wagons, the contents of the wagons should be recorded in the Wagon Register (Form S.1215) and compared with the invoices when received. This procedure is to safeguard the railway from any claims for shortages that may be made subsequently by the railway being repudiated by the suppliers.  

767.    Register of Purchase Order.—A Register of Purchase Orders should be maintained by the Receiving and Inspecting Officer in the following form (S. 767)  

(a)  Date of Receipt  

(b)  Serial Number of Purchase Order  

(c)  Group of Stores  

(d)  Last date of supply  

(e)  Receipt Note Number and Date  

(f)   Initials of Clerk concerned and the Gazetted Officer.  

The Register should be periodically examined and delays in supplies taken up with the contracting firms.  

768.    Check of Supplies with Purchase Orders.—When materials are received from suppliers in compliance with the Purchase Order, the quantity should be fully checked by the Receiving Officer with the Purchase Order (S.714) and if accepted after inspection and comparison with the approved sample, specification or design, the receipt should be granted.  

769.    A Reminder System for Overdue Deliveries.—When a firm has not completed deliveries according to the dates stated in the Purchase Orders, the procedure laid down in this and the succeeding two paragraphs may be followed with advantage. One copy of the reminder (S.769) should be sent to the firm. A firm should give an explanation of the delay on this form, and also give a definite date on which the ordered material will be delivered, and return the form to the Depot Officer. A limit of a certain number of working days according to the distance of the firm's headquarters from the depot should be given to the firms for returning Form (S.769). When the firms return Form (S.769) giving reasons for the delay and date by which delivery will be made, the new date, if acceptable, should be entered in the Register of Purchase Orders (S. 767) which should again be referred to when the due date matures. In cases when the firms have not returned the Form (S.769) in due time with explanations regarding the completion of purchase orders, Form (S. 769 A) should be sent to them. In the event of Form (S. 769A) not bringing a reply, Form (S. 769B) should be filled in and sent to the Controller of Stores, who should take the necessary action to deal with the firm concerned as laid down in paragraphs 771 and 772.  

Form No. S.769

 

REMINDER FOR OVERDUE DELIVERIES  

Station.......................  

Date............................ 

Messrs.........................................  

Dear Sirs,  

The following is a list of items which should have been delivered before this date. I shall be much obliged if you will thoroughly investigate the matter and let me know why it is that these articles have not been delivered and on what date delivery may be expected.  

Please note that the Railway Administration reserves the right to levy penalty for your default in not complying with the delivery date stipulated in the purchase order. This reminder is issued without prejudice to Railways' legal rights in the matter.  

PLEASE INSERT FULL INFORMATION BELOW AND RETURN THIS FORM BY NEXT POST. If you reply by letter, it is essential that this form should also be returned.

                                                                                                                                                           ---------------

Depot Officer

Purchase Order No. Date of Order Quantity Outstanding Description Particulars respecting

completion &c. to be filed in by Firm.

       

Signature of Supplier in reply 

Date..........................................

 

Form No. S.769-A

 

SECOND REMINDER FOR OVERDUE DELIVERIES

 

Station.....................

Date........................

Messrs............

.......................

Dear Sirs,

 

Will you please let me have back my Reminder for Overdue Deliveries No........................, dated.....................with the required information inserted therein.  

..........................

Depot Officer  

 

 

Form No. S. 769-B 

REPORT TO CONTROLLER OF STORES OF DEFAULTING FIRMS

 

From.                                                                      To  

Depot Officer,                                                          The Controller of Stores ........................Depot.  

No...........................                                          Station. ................... 

                                                                         Date.... ................. 

Material.......................................................  

Firm...........................................................  

Purchase Order No.................., date...............  

Delivery due on..........................................  

Supplied...................................................  

Remarks...................................................  

Action suggested.........................................  

.........................

Depot Officer  

770. In cases where the firms have failed to deliver the stores on the date quoted by them on Form (S.769), Form (S.770) should be sent to the firm for further explanations and return to the Depot Officer. The second extended delivery date should be entered in the register of purchase orders (S.767) if the Depot Officer accepts this second explanation and the new promised date for completion. If delivery is still not made, Form (S.769-B) should be filled in and forwarded to the Controller of Stores to deal with the transgressors.

 

Form No. S.770 

FINAL REMINDER TO DEFAULTING FIRMS

 

Station........................  

Date...........................

 

Messrs............................  

Dear Sirs,  

Referring to your promise of the..............................I am sorry to find the articles have not been received.  

Will you please investigate the matter at once, insert full particulars below as to the circumstances in which your promise has not been carried out, state when I may expect delivery, and return this form by first post.  

Please note that the Railway Administration reserves the right to levy penalty for your default in not complying with the delivery date stipulated in the purchase order. This reminder is issued without prejudice to the Railway's legal rights in the matter.  

Depot Officer

 

Purchase Order No. Date of Order Description Delivery promised by you on Explanation and further particulars
       

Signature of Supplier in reply

Date…....………………

771. Register of Defaulting Firms.—On receipt in the Controller of Stores Office of Form (S.769-B) containing the details of a firm's failure to supply in terms of the contract, a gazetted officer should scrutinize the form and differentiate between the really serious cases and those of less importance, the former being entered in the Defaulter's Register (S.771) while the latter should be filed. This is an alphabetical register of firms who have failed from time to time in various contracts, the entries showing the various items regarding which failure has taken place. The form shown below should be used for the register. Should many failure be recorded in the register of defaulting firms (S.771) within a comparatively short period under any one contractor's name, the Controller of Stores should decide whether the firm should be removed permanently from the list of supplier to the railway as being a wholly unreliable supplier, or only suspended., and if so, for what period. The orders passed should be communicated to all officers responsible for purchases who should see that their decisions are strictly adhered to.

  Form No. S.771 

REGISTER OF DEFAULTING FIRMS

 

Firm's Case No....................... 

Sheet No.............................

 

Contractor.............................. 

 Purchase Order No. and Date         Description of stores Quantity Offence Time late Officers Orders Remarks
Week Months
No. Weight
  

 

772. Risk Purchase and the Method of dealing with Defaulting Firms.—As explained in paragraph 769, a report in form (S. 769-B) will be made by the Depot Officer to the Controller of Stores when a firm has failed to supply the stores wholly or in part, in spite of additional time having been granted for the purpose. It was also explained in paragraph 764 that form (S.764) has to be forwarded to the Controller of Stores when any stores have been rejected. At this stage the Controller of Stores under the general conditions of contract has authority to purchase any quantity of the stores elsewhere at the risk and cost of the defaulting firm should at higher rates have to be paid for the transaction. Should it not be possible to obtain the stores in this manner, the defaulting firm may be debited with a sum of money amounting two per cent per month on the value of the contract as compensation to the railway. These provisions are legitimate under Indian Railways Standard Conditions of Contract, the defaulting firm being held liable in cases of  any extra cost being incurred.  

METHOD OF GRANTING RECEIPT AND MAKING PAYMENT FOR  

STEEL MATERIALS  

773. Payments for materials are as a rule made for the actual quantity received. But in the case of all steel raw materials in the rolled or semi-finished condition the following procedure should be observed in the method of granting receipt and making payments.  

774. Standard Weight.—The weights of such materials computed from their cubic measurements in accordance with the prescribed formula are termed "Standard Weights". As the actual weights in the case of these articles are not likely to conform to the standard weights, limits of "tolerances" over or below which the actual weights may not vary from the standard weights are generally laid down in the specification (I.S.S., I.R.S., B.S.S., DIN etc.) governing the supply.  

775.    Materials with No Tolerances.—In the case of all materials on which there are no tolerances, payment by actual weight should be prescribed in the Purchase Orders.  

776.    Deleted.  

777.   All other materials for which tolerances or standard weight are prescribed in the specification, should be paid for as follows :—  

(a) If the material complies with the required tolerances, payment should be made on the actual weight.  

(b) Where the material does not comply with the specified tolerances, it should be rejected. If for special reasons it is decided to accept it, material above the standard weight plus tolerance should be paid for at standard weight plus tolerance less freight on excess weight and material below the standard weight and tolerance should be paid for at actual weight. The decision to accept the departures from the specification requirements should be based on concurrence having been obtained in writing, from the indenting department or railway concerned.  

778.   Deleted.  

779.    In all cases of payment on actual weight, the bundling or crating material, if any, should be excluded.  

780. In cases of items paid at standard weight plus tolerance (Para 777 (b) refers), the difference between the actual weight and the weight paid for should be brought on to the numerical and priced ledgers by Departmental Stock Verification Sheets (S. 1260) so that the quantities  appearing in the ledgers agree with the ground balance.