| |
Part III |
| |
One of the shortlisted firm have raised
certain queries which are answered as under :- |
| |
|
| |
TOR specific questions. |
| |
(a) Page 57: Point f What is a
non core activity. |
| |
|
| |
Ans. Our core activity is
rail passenger and freight business. IR also manufactures
locomotives and coaches. We also have catering services,
on-board housekeeping such as bed linens and other
amenities/provisions. We run a major Captive Health Service
Scheme for all our employees. We do provide schooling. We
produce rail wheels. We manufacture loco components.
What should be hived off is a matter of discussion at the
moment. Consultants are expected to come up with suitable
recommendations. It is not easy to separate rails from the
wheels, argues one school of thought. Whether rail rolling stock
manufacture should be hived off and reduce railways to only
train operation status, is a major issue. |
| |
|
| |
(b) Page 57 Point i Is their
need for subsidy projection to be made for two-three years. |
| |
|
| |
Ans. No. This is not
expected. |
| |
|
| |
However, a mechanism to ascertain
the level of subsidies in various segments of Railway is
expected to be built in the new accounting system so as to
facilitate relevant management decisions. |
| |
|
| |
(c) Page 58 Para 2.3 What is
the role of the consultant in the computerization of accounting
system. MOR has already developed many software's which are at
different stages of implementation. Can u clarify the scope of
the consultant in regard to computerization |
| |
|
| |
Ans. Item 'f' at page 61
may be read along with Para 2.3 at page 58 of RFP document.
After the recommendations made by the consultant are accepted,
changes in software, if required, shall be initiated and
implemented under the overall supervision of the consultancy
firm. It is expected that consultant's recommendations may
require certain changes in the existing accounting system so as
to fulfill the targets set in Terms of Reference. |
| |
|
| |
(d) Page 58 Point a. IR-
Financial statements - Basic financial verification - What does
this activity mean. |
| |
|
| |
Ans. Basic financial
verification would include verification of financial statements
presently prepared by Indian Railways with financial statements
of other railways. |
| |
|
| |
(e) Page 59 Point b. Is the
consultant required to modify or re-develop the existing FMIS
accounting system used in the zones or a new accounting system
is to be developed by the consultants. |
| |
|
| |
Ans. Task 1 and task 2 on
the Terms and of Reference include redefinition of the existing
system and development of a compatible accounting architecture.
Indian Railways have recently introduced a computerized
accounting system covering six Zonal Railways through a pilot
project. This is being adopted by other Zonal Railways.
Therefore, the consultancy firm may not be expected to develop
any new software for the new accounting system required.
However, suitable changes or improvements or modifications
arising out of the recommendations of the consultant for the new
accounting system developed by them may arise. |
| |
|
| |
(f) Page 59 Point c. What is the
meaning of accounting architecture? |
| |
|
| |
Ans. The existing
accounting architecture is based on the vertically integrated
management structure of Indian Railways and its managerial
information requirements. The Indian Railways would like to
introduce profit center concept and Lines of Business / Lines of
Service based accounting separation. The new accounting
architecture will facilitate financial reporting to suite to the
requirements each of these Lines of Business based. |
| |
|
| |
(g) Page 59 Task 2: The new
chart of accounts should be an extension of the codes used
rather than a change of all the heads to capture data. Is that
correct? |
| |
|
| |
Ans. That is largely correct. The
word "extension" should be replaced by the word "addition.
Deletion, modification and re-organisation". |
| |
|
| |
(h) Page 60 Task 5: What is
meant by passenger related On-board and off-board services. |
| |
|
| |
Ans. On-board services will
include services provided to the passengers while on board (i.e.
traveling in a train) while off-board services include services
meant for passengers on platforms (i.e. on arrival and departure
terminals) including ticket booking offices etc. |
| |
|
| |
(i) Page 60 Task 6: What is
meant by Audit bots? |
| |
|
| |
Ans. For preliminary understanding
of the term, you may visit the website
www.cfonet.com/printarticle/0,5317,7789,00.html. |
| |
|
| |
(j) Page 61 point e: Does this
point mean training and development of the officials on the
proposed accounting system. |
| |
|
| |
Ans. Attention is invited
to last sub-Para of our response to query 4 Pt.I under
Clarification II on Tender Section page of our website
www.accar.org. However, firms are not precluded from suggesting
a different methodology in keeping with Para (b) & (c) of the
handbook (Page 38). |
| |
|
| |
(k) Page 61 point f: What do
you mean by implementation of accounting architecture? What is
the scope of this implementation. |
| |
|
| |
Ans. Attention is invited
to our response to query 1 & query 2 of Pt.II under sub-section
Clarification II of Tender section of our website
www.accar.org. |
| |
|
| |
Other Questions |
| |
1. As per the organization
structure given in the website, there are 16 Zones, 6 Production
Units, 8 other units and 9 PSU who report to the Railway board.
(a) Are the PSU part of this study.
Ans. No.
(b) Is the accounting for PSU's is different from the other
units.
Ans. Yes.
(c) Does the PSU accounts are also merged with the railway
accounts
Ans. No.
(d) Who handles the accounting in the zones.
Ans. Financial Adviser and Chief Accounts Officer of the Zonal
Railway.
2. In case of zones there are number of divisions under zones.
The divisions are mostly metros and big cities.
Ans. The divisions are not necessarily metros and big cities.
(a) Are the divisions accounts maintained manually or
computerized?
Ans. Out of 66 divisions, 30 are maintaining their accounts
manually and 36 are computerized.
(b) Who handles the accounts of the division.
Ans. There is an accounting set up in the divisions under
Divisional Finance Manager who is under the professional control
of Financial Adviser and Chief Accounts Officer of the Zonal
Railway.
3. There are small cities which operate under divisions
Ans. Division is the base unit so far as compilation of accounts
is concerned and there is no further smaller unit.
(a) Are their sub-divisions under divisions?
Ans. No. Further, there are workshops for repairs and
maintenance of rolling stock and other railway machinery for
which separate organization set up including separate accounts
office is there.
(b) If so are the sub divisions an accounting unit. If they are
an accounting unit, then the accounting is carried on manually
or computerized.
Ans. There are no sub-divisional units for accounting purposes.
(c) Who handles the accounting of the sub-division?
Ans. This is not applicable.
4. All government departments follow Government financial
accounting rules.
(a) Are you following Government Financial Accounting rules?
Ans. Yes. Indian Railways are following Government financial
accounting rules. The website www.cga.nic.in may be visited.
(b) What is the present manual being followed?
Ans. These are Accounts Code Volume I & II and Finance Code
Volume I & II. There are comprehensive code books and manuals
available on Indian Railways for the existing accounting system.
(c) Is there an accounting code book available at present?
Ans. Yes. These are available.
5. It is given that compilation happens at various levels.
(a) Can u detail what are the records sent by divisions to zonal
for compilation.
Ans. Reference is invited to our response to query 1 and query 5
under "Clarification 1" sub/section to section "Tender" on our
website www.accar.org.
(b) What records do Zones send to the railway board?
Ans. The reply is same as 5(a) above.
6. What is the present costing system followed by railways and
how is the tariff/s for passengers and freight fixed.
Ans. Indian Railways follows fully distributed costs. The
costing system facilitates the ascertainment of the cost of
freight services and that of coaching services including costing
of various constituents of these services. Task 4 and task 5 of
the TOR may be referred to.
7. Are fixed assets register maintained? Who maintains the
details of the assets under a zone? Is this register maintained
at various level e.g. zones, divisions etc.
Ans. Yes, fixed asset registers are maintained in the
Divisions/Workshops/Productions Units of respective departments.
Specific formats have been prescribed for maintenance of these
registers. |
| |
8. What are the stages of
computerization of? |
| |
Ans. |
| |
|
Software |
Developed |
Tested |
Implemented |
Frontend/backend |
| Financial Management Information System (AFRES) |
Yes |
Yes |
Partly |
Oracle Backend and Native
Frontend in client server mode |
| Payroll and independent Modules (PRIME)- |
Yes |
Yes |
Partly |
Oracle Backend and Native
Frontend in client server mode |
| Material management |
Yes |
Yes |
On pilot basis |
Oracle Backend and Native |
| Information System (MMIS) |
Yes |
Under testing |
|
Frontend in client server
mode |
| Passenger Accounting System (PAS) |
Yes |
Under testing |
No |
Oracle Backend and Native
Frontend in client server mode |
| Freight Accounting System (FAS) |
Yes |
Under testing |
No |
Oracle Backend and Native
Frontend in client server mod |
| Operating Statistics System |
Yes |
Under testing |
No |
Oracle Backend and Native
Frontend in client server mode |
| Personnel Management Information System (PMIS) |
Yes |
Under testing |
No |
Java Frontend |
|
| |
|
