CALL ANNUAL FAMILY GET TOGETHER ON 2ND OCTOBER 2006 AT NEELAGARAI
CALL FAMILY GET TOGETHER
TABLE OF EVENTS FROM 2002
NO
YEAR
PLACE
DATE
NO OF
ATTENDED
1
2002
JOSEPH RAJ’s
RESIDENCE
CHENGALPATTU
OCT 2ND
10 MEMBERS
2
2003
GNANARAJ’s
RESIDENCE
AYANAVARAM
OCT 2ND
7 MEMBERS
3
2004
GNANARAJ’s
RESIDENCE
AYANAVARAM
OCT 2ND
6 MEMBERS
4
2005
SARA’s
RESIDENCE,
PALLAVARAM
OCT 11TH
10 MEMBERS
5
2006
EMMAUS
NEELANGARAI
ARMSTRONG
OCT 2ND
10 MEMBERS
6
2007
MONTH
DATES
NAME
JAN
19TH
21ST
22nd
MUKILA – (GNANARAJ) BIRTH DAY
GRACE & GNANARAJ WEDDING DAY
ANGELIS & SUSHILA WEDDING DAY
FEB
3RD
ANTONY FERNANDEZ WEDDING DAY
MARCH
10TH
10TH
11TH
15TH
26TH
JAYARANI (JEYASEELAN) B DAY
ANTONY FERNANDEZ
NITHYAMANI (TENSINGH) B DAY
MANO ALBERT (TENSINGH) B DAY
SUSHILA ANGELIS B DAY
APRIL
1ST
10TH
16TH
JOE VIMAL (JOSEPH RAJ)BIRTH DAY
GNANARAJ BIRTH DAY
CELINE (DHEESMAS) BIRTH DAY
MAY
1ST
5TH
20TH
22ND
22ND
GRACE GNANARAJ BIRTH DAY
JEYASEELAN & JEYARANI WEDDING DAY
TONY (DHEESMAS) BIRTH DAY
VANARASI – JOSPEHRAJ WEDDING DAY
TENSINGH – NITHYAMANI WEDDING DAY
JUNE
2ND
4TH
5TH
27TH
SHERIN ANGLEIS B DAY
SESAMMA – DHEESMAS WEDDING DAY
DR DEVENESAN (RITA) BIRTH DAY
AMUTHAN MENDALA(JEYASEELAN) B DAY
JULY
31ST
EDWARD TENSINGH B DAY
AUGUST
7TH
VANARASI (JOSEPH RAJ) BIRTH DAY
SEPTEMBER
1ST
2ND
6TH
6TH
7TH
24TH
M C MIHAEL B DAY
JEYASEELAN B DAY
RITA - DEVANESAN WEDDING DAY
JERRY RAYAN BIRTH DAY
JOSEPH RAJ BIRTH DAY
STEFI ANGELIS B DAY
OCTOBER
16TH
16TH
29TH
31ST
JOAN DEEPA (SARA) BIRTH DAY
SANTA MARIA (TONY) BIRTH DAY
JENNIFER – RAYAN WEDDING DAY
JOHN DIVYAN (SARA) BIRTH DAY
NOVEMBER
6TH
10TH
11TH
12TH
13TH
IMMANUEL (TONY) BIRTH DAY
AKILA BHARATHI(JEYASEELAN) BIRTHDAY
ARMSTRONG B DAY
SARA – ARUL WEDDING DAY
SNEHA (RITA) BIRTH DAY
DECEMBER
11TH
17TH
18TH
RITA BIRTH DAY
MARIA FERNANDEZ B DAY
M C MICHAEL ORDINATION DAY
NO
NAME
ADDRESS
TELEPHONE
1
ANTONY FERNANDEZ
OLD NO 11/NEW NO 23, SIYALI STREET, CHENNAI 600002
DYC
9444006334
2
DHEEPAM M I
11/7 POORANA THILAGAM CROSS ST, WEST TAMBARAM, CHENNAI 600045
YCW
22265132
9444330393
3
DHEESMAS D SILVA
NO 1 ANNAI TERESA NAGAR, THIMMAVARAM, 603101
DYC
27470540 9444028871/
28480357
4
GNANARAJ T X
OLD NO 9 NEW NO 17 APPA DURAI FIRST ST, AYANAVARAM, CHENNAI 600023
AICUF
044 26460659
944937659
5
JEYASEELAN A
25 BHARATHI NAGAR, GOVERDHANA GIRI CHENNAI 600071
YCS
9841979928
6
JOSEPHRAJ A
254/4 ANNAI THERESA NAGAR, THMMAVARAM, CHENGALPATTU 603101
AICUF
044 27426295
9443326295
7
MARIAN REV SR
PRESENTATION CONVENT, VEPERY , CHENNAI 600007
O44 25321753(CONVENT) 044 25322358 (SCHOOL)
YCS
9840218707
8
PAUL DOSS
ST PETER’S HR SECONDARY SCHOOL, ROYAPURAM, CHENNAI
YCS
9840289958
9
RITA DEVANESAN
NO 9, STELLA MARY NAGAR FIRST ST, THANJAVUR 7
AICUF
04362 239133
9443710133
10
ROYEN A P
2/869, MUGAPPAIR WEST, CHENNAI 600058
044 26245033
11
ROZARIO JOSEPH
PLOT NO 3 A, THANIKACHALAM NAGAR, C BLOCK, FIRST MAIN ROAD, PONNIAMMAN MEDU CHENNAI 600110
AICUF
044 25564039
12
SARA ARUL
2/49 VETERAN LINES, PALLAVARAM, (BEHIND ENGLISH ELECTRICAL) CHENNAI 600043
YCS
044 55903988
9444210097
13
SHEILA MARTIN
VARALAKSHMI FLATS, 13, KAVERY ST, RAJAJI NAGAR, VILLIVAKKAM, CHENNAI 600049
YCS/
AICUF
044 26503625
9840997999
14
XAVIER A L
19,MOTHER THERESA ST, SRINAGAR COLONY, SM NAGAR POST, CHENNAI 600062
IYG
044 66383080
9380009248
15
JAMES VICTOR REV
NARCHEIDHI NADUVAM, PATHINATHAPURAM, TUTICORIN 8
IYG
9443131231
16
ARMSTRONG
M 4 G 1, SURYA FLATS, TNHB FLATS, HOUSING BOARD TIRUVALLUVAR NAGAR MAIN ROAD, THIRUVANMIYUR, CHENNAI
YCS
9884022274
17
SELVARAJ X T
COMMISSION FOR LAITY, CCBI CENTRE, HUTCHINS RD 2ND CROSS BANGALORE 560084
IYG
9448357388
080 25498282
18
MICHAEL M C
ST SEBASTIAN’S CHURCH, NAGALUR POST, VIA ANTHIYUR
ERODE DIST 638 501
YCS
95 4256 261256
19
EDWARD TENSING
103, K PAGODA ST, CHENNAI 600004
YCS
9444248879
20
RAJKUMAR R J
4/39 – 1 ST, ST PATRICK CHURCH RD, 3RD LANE, THOMAS MOUNT, CHENNAI 600016 philip79@vsnl.net
ICMICA
044 22334483
21
PETER, REV
OLD NO 151/ NEW NO 66, LUZ CHURCH ROAD, CHENNAI 600004
YCS,
044 24988693
22
SUSAI RAJ
YCW
044 25555002
23
ANGELIS
AICUF
9381020149
24
LAZAR
AICUF
9841916736
25
MIRUNALINI F X
044 26184194
SUM UP OF THE FOURTH FAMILY GET TOGETHER ON 11TH OCTOBER 2005 AT PALLAVARAM, CHENNAI 43
The annual family get together of Christian Association for Lay Leadership (CALL) was held on 11th Oct 2005 in the residence of Ms Sara Christi, St Thaddeus cottage, 2/49 Veteran Lines, Pallavaram, Chennai 43. Members braved the heavy down pour of rains. The meeting was informally started at 11.30 am by introducing the members. The following members were present: Rev M C Michael, Dheepam, Tensingh( Nithyamani, Mano), Jeayseelan( Jeyarani, Akila, Amuthan), Antony Fernandez ( Maria, Santa, Immanuel), Gnanaraj ( Grace, Mukila), Josephraj ( Vanarasi), Sara Christie ( Arul, Joan, John), Armstrong and Rev Sis Marian.
Invited but Expressed Inability: Rita (Devanesan, Sneha) Tanjavur, A P Rayan (Jennifer), Sheila (Martin, Niranjan, Kathy), Susairaj, R J Rajkumar, Rosario Joseph (Mohana) Fr James Victor Tuticorin and Fr X T Selvaraj Bangalore
Assured To Attend but Not Attended: Xavier (Anne), Dheesmas( Sesammal, Tony, Celine), Paul Doss
After the customary exchange of pleasantries, a delicious lunch was offered at 1.00 pm. It was planned to have the regular sharing of one-year experiences at 2.00 pm after lunch. The children were kept busy by viewing Ten Commandments, Jesus, the revolutionary and other play CDs through Computer.
Gnanaraj explained the purpose and objectives of the gathering.
to make our children aware of the ideals for which their parents gave their precious youth
to be role models to our children
to share one year experiences, sorrows, agonies, victories, failures, ventures etc
to plan concretely where intervention can be made as individuals, as groups, as members of organizations, associations, movements
To revive and revitalize the link among the various catholic youth and workers organizations.
The sharing began with Gnanaraj. He shared his experience in organizing cash award to the 10th standard school toppers in Railway Colony Aided High School, Ayanavaram. The school caters to the socially and economically lower classes. To encourage the students, the office staff of Joint Office, Ayanavaram decided to collect cash donations to give two first prizes each Rs 2000/- and two second prizes each Rs 1500/- to girls and boys. The contribution from the office staff was overwhelming and poured out money to meet the cost of prizes and the expenses of the function. The dignitaries were officers from Railway and they announced cash award, personal assistance, and other material assistance to the school hitherto neglected.
Speaking of the school Sara Christie shared her experience about the syllabus and the life of teachers in catholic schools in particular and schools in general. The saffronisation of the syllabus is very evident from the books on Mathematics, History etc. The school authorities are pressurizing the teachers to impart the same to the students. No dissent is permitted with regard to syllabus. Further, the syllabus is increasingly heavier and tougher for the rural and socially weaker students. She also shared that the female teachers are openly harassed, abused, and ill-treated in the presence of students and fellow staff. Such acts of violation of fundamental rights of teachers are grossly taking place and in schools run by nun sisters. The male teachers of catholic schools run by male congregations are much free. Such extreme working situation exhausts the teachers and they return home totally tired unable to attend their family chores. This chronically affects the morale of teachers and students. Unfortunately, the teachers in catholic schools have no forum to represent their woes neither locally (within schools of the same congregation or locality) nor at the apex level (diocese level). The Teachers Guild is not functioning. There is no time for students for extra curricular activities.
Intervening the discussion on the tight schedule in schools, Jeayseelan, stated that there is still some space in the schools to expose the students to social realities. The existing facilities like NSS can be utilized to expose the students to the social realities. Also through environmental issues and human rights, education students can be taught the social issues. What ever taught as erroneously in the syllabus can be nullified with the supplementary input to the process of education. Short films on such issues can be made use. Incidentally, Josephraj has been making such short films on various social issues. To provide resources and opportunity to those teachers who want to expose the social issues these short films can be best tools. He stated that along with Josephraj have made some short films socially relevant.
Working as a teacher, Nithyamani Tensingh has undergone similar experiences like Sara. She recalled that many teachers in catholic schools run by nuns are undergoing untold sufferings. There are cases where teachers are publicly abused. When deputed to attend training programmes, the teachers are supposed to say yes and advised not to question the syllabus even if it is not relevant. At present, there is no forum to represent the grievances of teachers. However, no teacher would come forward to openly to air the grievances, as it would end in taking disciplinary action or even abrupt removal from service. Their condition is precarious.
Recalling his long association with friends in various movements, Antony Fernandez shared the works and challenges as part time secretary for laity commission of the archdiocese, executive member of catholic union and other church related associations and groups. The long and varied experience helped him to train the laity with special emphasis on women. One fact must be kept in mind while working within the church. Even the reforms will take decades to be implemented. If we were to involve in church related activities this reality must be kept in mind. Otherwise, we may get frustrated and dejected. That vacuum will remain for a long time and the opportunity to train youth and laity for long time will be lost. As a response to the issues raised by Sara, Nithyamani, Josephraj, and Jeyaseelan, he volunteered to revive and revitalize the Arch Diocesan Teachers Guild. Further, he also offered to utilize the short films made by Josephraj and Jeyaseelan during the training camps, workshops, and seminars to train youth, laity, and women on social issues.
Coming from a corporate environment of ICICI[1], Armstrong shared how he is engaged in activities to encourage the poor and disadvantageous students. He along with his friends, arranged summer camps for poor children for very small fees for two weeks. During the camps, students were taught mathematics and English as special subjects. Activated the students to perform street plays on social issues and issues most common in their locality. In addition, students were encouraged to write some ting on their life ambition. Encouraged by the grand success of the summer camps, “Sigaraththai Nokki” a program on counseling for the underprivileged was organized. To make involve professionals with the formation of poor students, he has caused the formation of a social think tank. Professionals from various occupations have volunteered to be part of this think tank. Among the students of MOP Vaishnav College, he helped the formation of community SMS project. College students are given weekly exposure of financial markets, organized leadership seminars, and corporate communication skills.
Ignatius Dheepam, with long experience in YCW[2] and CWM shared his experience first as an employee in a nationalized bank and as a social activist. In Kasimodu , a self help group for fisher women is organized for the last five years. This is to empower the women through self help. Under the scheme Rs 3000/ is advanced to a group of women to ascertain their credit worthiness. There after, the loans were arranged to sustain the growth. He expressed that progressive work within the church is not tolerated by local priests and it is essential that the work must be carried on out side the purview of the Catholic Church. If we were to keep fighting with the bad elements with in the church, it would drain our hope and energy. It is time to spread out and work for the society.
Josephraj with his multi various experiences in journalism, social action groups, movements, women’s groups, NGOs shared his new ventures on making short films used to create awareness among various audiences. He has been regularly conducting journalism workshops to create journalistic skills among the socially disadvantageous groups. He has to his credits a few short films and even won an award from among the NGOs for one of his short films. He emphasized the importance of visual media to create social awareness. The latest “sontha thaalangal” with Jeyaseelan is scheduled to be released shortly.
Jeyaseelan, further continued that the participants of the family get together are drawn from various organizations, movements, associations, and groups. They come with enormous experiences, which can be documented as a booklet to be used as inspiration for younger generation.
Josephraj agreed to the suggestion and stated that instead of a booklet, short films can be made with the persons, which would be more appealing and pictorial to the younger generation. These short films can be used as source materials during workshops, seminars, and meetings. One such existing short film on dalits and panchayat rights titled as “adimaigalin desam” has been very useful.
To wind up the experience and to reaffirm the basic Gospel values, a Eucharistic celebration was held. During the celebration, once again members shared their experience on the meet. ‘ a source of inspiration’, ‘An offering to God’, ‘like Jesus we should give us to the betterment of society’, ‘like attending a real BCC meeting against the soft coated anbiyam’, ‘offer everything to god in prayer and he shall answer our prayers’, ‘as source of consolation and sustenance’ etc.
Sara Christie and Arul offered thanks to Rev M C Michael and all the participants for having braved the rains. Arul praised the positive approach of MC and thanked him for being with us. The members thanked Joan and John children of Sara and Arul for their wonderful hospitality. They also wished birthday wishes to Joan Deepa and Santa Maria 16th October and John Divyan 31st October. Antony Fernandez suggested that all the members could go to MC’s place for the next meeting. However, no decision was taken about the next meeting and the venue. The date stands good as 2nd October. The members with their family started to leave carrying the memories to be kept alive until next year.
This is draft minutes and members are requested to return the draft with corrections, additions, and deletions.
With best wishes
(Gnanaraj T X)
SUM UP OF THE FOURTH FAMILY GET TOGETHER ON 11TH OCTOBER 2005 AT PALLAVARAM, CHENNAI 43
The annual family get together of Christian Association for Lay Leadership (CALL) was held on 11th Oct 2005 in the residence of Ms Sara Christi, St Thaddeus cottage, 2/49 Veteran Lines, Pallavaram, Chennai 43. Members braved the heavy down pour of rains. The meeting was informally started at 11.30 am by introducing the members. The following members were present: Rev M C Michael, Dheepam, Tensingh( Nithyamani, Mano), Jeayseelan( Jeyarani, Akila, Amuthan), Antony Fernandez ( Maria, Santa, Immanuel), Gnanaraj ( Grace, Mukila), Josephraj ( Vanarasi), Sara Christie ( Arul, Joan, John), Armstrong and Rev Sis Marian.
Invited but Expressed Inability: Rita (Devanesan, Sneha) Tanjavur, A P Rayan (Jennifer), Sheila (Martin, Niranjan, Kathy), Susairaj, R J Rajkumar, Rosario Joseph (Mohana) Fr James Victor Tuticorin and Fr X T Selvaraj Bangalore
Assured To Attend but Not Attended: Xavier (Anne), Dheesmas( Sesammal, Tony, Celine), Paul Doss
After the customary exchange of pleasantries, a delicious lunch was offered at 1.00 pm. It was planned to have the regular sharing of one-year experiences at 2.00 pm after lunch. The children were kept busy by viewing Ten Commandments, Jesus, the revolutionary and other play CDs through Computer.
Gnanaraj explained the purpose and objectives of the gathering.
to make our children aware of the ideals for which their parents gave their precious youth
to be role models to our children
to share one year experiences, sorrows, agonies, victories, failures, ventures etc
to plan concretely where intervention can be made as individuals, as groups, as members of organizations, associations, movements
To revive and revitalize the link among the various catholic youth and workers organizations.
The following points were deliberated:
The syllabus in the schools
The administration of the schools
The precarious situation of the lady teachers in the catholic schools runs by women religious
The opportunity to teach extra curricular activities, introducing the students to social realities
The opportunity to create short films on social themes and utilize them with students, laity etc
The revival of teachers’ guild
The catholic schools
The syllabus in the schools
Welfare activities for the teaching and non teaching staff
Association to express views and grievances – revival of teachers’ guild
Transparency in administration - minimum wages
Democracy in appointment –
Issue of appointment order on completion of stipulated probationary period
Welfare activities like group insurance leave facilities,
Setting up of diocesan level education committee
Separate committees for primary education and higher education
with due participation of laity, teachers
Establishment of community colleges under laity leadership in addition to existing one
Establishment of a technical college at diocesan level – e.g. Kottar Diocese
Ensuring at least one from each diocese to get a seat in St John’s Medical College, B ‘lore
Diocesan level registration of qualified teachers and on teaching staff from among the Catholics
As done now in Palayamkottai and Kottar dioceses
Routing of school level petty works contracts through diocese to Catholics of the locality, diocese
Petty civil works, uniform supply, tailoring work, supply of text books, text notes, stationary items, electrical and plumbing works, etc etc
Review of general economic well being of Christians
Surveys of economic status
Review of multipurpose society’s role in comparison with the diocese
Rejuvenation of diocesan level committees like laity, social and justice, non formal education, educational etc to inculcate the social messages of the Gospels
Inter acting with non Christian forums and educational institutions like educational counseling, personality and leadership development etc
To wind up the experience and to reaffirm the basic Gospel values, a Eucharistic celebration was held. During the celebration, once again members shared their experience on the meet. ‘ a source of inspiration’, ‘An offering to God’, ‘like Jesus we should give us to the betterment of society’, ‘like attending a real BCC meeting against the soft coated anbiyam’, ‘offer everything to god in prayer and he shall answer our prayers’, ‘as source of consolation and sustenance’ etc.
Sara Christie and Arul offered thanks to Rev M C Michael and all the participants for having braved the rains. Arul praised the positive approach of MC and thanked him for being with us. The members thanked Joan and John children of Sara and Arul for their wonderful hospitality. They also wished birthday wishes to Joan Deepa and Santa Maria 16th October and John Divyan 31st October. Antony Fernandez suggested that all the members could go to MC’s place for the next meeting. However, no decision was taken about the next meeting and the venue. The date stands good as 2nd October. The members with their family started to leave carrying the memories to be kept alive until next year.
I would like to thank Arul, Sara, Deepa and Divyan for playing the excellent hosts for the family get together.
With best wishes
(Gnanaraj T X)
OLD NO 9 NEW NO 17 APPA DURAI FIRST ST, AYANAVARAM, CHENNAI 600023 044 6460659 944937659
x_g_raj@yahoo.co.uk
My presence shall go before thee (Ex 33.14)
T X GNANARAJ IMMANUEL
OLDNO 9 NEW NO 17 , APPADURAI FIRST ST
CHENNAI 600023
DT: 06.09.2006
Dear friends,
I greet to you all in the name of Jesus, the liberator. For the last four years, some of the ex YCS, AICUF, YCW and DYC members who are still active in various social fields, have been meeting once in a year as family in the presence of Rev M C Michael, former YCS National Chaplain in the house of the members. This arrangement was made to rededicate us for the causes for which we spend our precious youth and as role models for our children. Our children ought to know those ideals for which their parents lived and we thought that such family get to gather will help them. For our convenience sake Oct 2nd was chosen as date for the gathering. This year also it is planned to hold the annual family meeting. I discussed with M C and he has agreed. Mr Jayaseelan has offered his house at Goverdhana Giri Avadi for the get together. I extend the invitation to you to participate in the gathering. .
Rev X T Selvaraj, Secretary, Commission of Laity, CCBI Centre, Bangalore and Rev James Victor, Tuticorin, besides M C Michael, former YCS National Chaplain will be attending as of now. In fact it is that M C suggested for inviting Rev Claude former AICUF National Adviser from Bangalore.
We cordially invite you join the family get together.
Date: 2nd Oct 2006
Day: Monday ( Govt Holiday- Gandhi Jayanthi & Vijaya dhasami)
Time: 11 a m to 4 p m
With regards and love
(Gnanaraj)
PS: NO 23 BHARATHI NAGAR, GOVERDHANA GIRI, AVADI,CHENNAI
From Avadi Railway / Bus station: on the way from Avadi to Poonamallee
62 Redhills to Poonamallee
Bus stop: Goverdhana Giri, 3rd stop from Avadi market
65 D Ambattur Industrial Estate to Poonamallee
Bus stop: moorhty nagar 2nd stop from Avadi market
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THE FIFTH FAMILY GET TOGETHER ON 2nd OCTOBER 2006
AT EMMAUS, NILANGARAI, CHENNAI
The annual family get together of Christian Association for Lay Leadership (CALL) was held on 2nd Oct 2006 in EMMAUS, NILANGARAI, CHENNAI hosted by Armstrong, Pauline & Oscar Romero. Members braved the distance form their residences and reached the place at 12 Noon. The meeting was informally started at 12.15 pm by introducing the members. The following members were present: Rev M C Michael, Dheepam, Jeyarani, Akila, Amuthan (Jayaseelan), Antony Fernandez, Gnanaraj, Josephraj, Sara Christie (Arul, John), Armstrong, (Pauline, Oscar Romero) Lazar (Desdemona, Emi), Angelis ( Sushila, Sherin, Stefi),
Invited but Expressed Inability: Rita (Devanesan, Sneha) Tanjavur, A P Rayan (Jennifer), Sheila (Martin, Niranjan, Kathy), R J Rajkumar, Rosario Joseph (Mohana, Rex) Fr James Victor Tuticorin , Mirunailini, Rev Sr Marian PBVM
Assured To Attend but Not Attended: Xavier (Anne), Dheesmas( Sesammal, Tony, Celine),
Unable to contact: Paul Doss
Emmaus is the residence for those diocesan priests who come to Chennai to do studies. It is a serene and cool place with lawns, meadows, circular training hall, small and compact chapel and residential rooms and cottages plus the refectory. It is located in Nilangarai, (ice factory bus stop, near PDN Kalyana Mahal, near Subiksha shop on the way to Mamallapuram, on the eastern side in the East Coast Road) , about 7 KMs from Tiruvanmiyur Bus Depot. Rev M C and Armstrong were first to reach the place ahed of others. Then Lazar & family arrived Thereafter, members started arriving dribs and drabs. The first programme was customary self-introduction. During the introduction, two new invitees, i.e., Lazar & family, Angelis & Family introduced themselves. In addition, Pauline, spouse of Armstrong and his son Oscar Romero were introduced. Members shared their personal details like family and their work area and how they are still contributing to the formation and social action at their own pace and resources.
Gnanaraj explained the purpose and objectives of the gathering.
to make our children aware of the ideals for which their parents gave their precious youth
to be role models to our children
to share one year experiences, sorrows, agonies, victories, failures, ventures etc
to plan concretely where intervention can be made as individuals, as groups, as members of organizations, associations, movements
To revive and revitalize the link among the various catholic youth and workers organizations
To encourage the children to exhibit their special talents Emi, Sherin and Amudha were invited to share some dance steps of Bharath Natyam. Mr Josephraj clicked away such memorable steps with his digital camera.
a delicious lunch was offered at 1.00 pm. By the time, special invitees Smt Saraswati Retd HOD, Dept of Sociology, Queen Mary’s’ College, Chennai and her husband Shri Viduthalai Rajendran, co founder of Periyar Dravidar Kazhagam arrived to share the lunch. At 2.00 pm, Mr Josephraj introduced them as humanists and non believers who are engaged in promoting human values in social life. Though CALL is a believers group dedicated to promote Gospel values, these two personalities are non believers yet engaged in struggle for protecting the human values specially of the oppressed and downtrodden i.e. Dalits and OBCs. It is sign to note because a good number of persons outside the church are struggling to uphold the human and secular values other wise in Christian parlance known as Gospel values of truth, justice, love etc. The sharing turned on the role and mission of EVR Periyar in Tamil Nadu. Shri Rajendran said that it is a good sign that many groups outside the original Dravidar Kazgagam, like the feminists, humanists, pro reservationists, nationalists, communists, socialists and even church groups are praising the role and mission EVR Periyar in Tamil Nadu. Thus, the legacy of EVR Periyar in Tamil Nadu has grown out of the party and has spread to many groups. At 3.00 pm, the personal sharing and the tasks before the groups were discussed.
1. As a continuance of the 2005 resolutions, the follow up of the case of precarious position of teachers in the catholic schools and the review of saffronised syllabus were taken for discussion. The revival and rejuvenation of Diocesan Catholic Teachers’ Guild is underway and three to four meetings were conducted by Mr Antony Fernandez. Regarding the review of saffronised syllabus Ms Sara Christie was requested to take photocopies of the subjects and send them to Mr Jayasilan to conduct a review for on ward transmission to Shri Rajendran for raising it in appropriate social and political forums.
2. For the current year, Gnanaraj suggested that Educational and Career Guidance in grassroots level is very essential. The catholic community of todays is not the same as it was a decade ago. Despite the official apathy and discrimination by the catholic educational institutions, the blunt refusal by the official church to face the existential issues of the catholic community, acrimonious attitude by the church on the poor Catholics, the catholic community on its own staggered and walking steadily. It has realized that the catholic children have to educate themselves and compete in order to be salt of the earth, light of the world and leaven of bread ( Matthew 5: 13 & 14) However, the parents, the children as well as persons at the parishes are not properly informed. Hence, educational and career guidance at parish/vicariate (cluster of parishes)/school for the catholic children is essentially needed. The Diocesan Laity Commission through the network of Catholic Renewal Movement of India, Catholic Union and other outfits can conduct such guidance meetings once in a month. The active participation of CRMI, CU and other outfits is a prerequisite.
3. The training for catholic women for self-employment is very much needed. The emerging women’s desk needs such training for creation of self help groups among catholic women. The Tamil Nadu Women Development Corporation, Guindy offers free training courses for women entrepreneurs. Mr Armstrong volunteered to link the women’s desk with the Tamil Nadu Women Development Corporation, Guindy. Mr Antony Fernandez is to coordinate the work for good results.
4. In general, entrepreneurs among Catholics is very rare. If the community is to sustain the economic gains achieved recently, it is essential that new and young entrepreneurs come forward from the catholic community. It is a boon for India that 47 % of its population is youngsters between the ages of 14 to 35. Such a feat does not exist in any other country in the world perhaps except China. However, the 80 % such youths reside in villages and need technical training so that they can be gainfully employed. The Business Processing Outsource (BPO) requires skilled youths to work.
5. To introduce the internet to the catholic community as a source of information and a source of livelihood
6. To sustain, guide and animate youth movements like YCS/YSM, AICUF, YCW, DYC etc through dynamic and critical intervention.
To wind up the experience and to reaffirm the basic Gospel values, a passage from the New Testament –Matthew chapter 5: 3 – 11 verses (Beatitudes) were read and M C reflected on these lines. When every one in society wants to compete and defeat others, here is a group of people willing to share and promote the human values. Such efforts do really have the blessings of the divine. For Jesus he went about doing good things among the needy during his corporal life. Two meaningful songs apt for the occasion “õó‹ «è†´ õ¼A¡«ø¡ Þ¬øõ£ â¡ °ó™ «è†´ ܼœõ£«ò£ î¬ôõ£: ð¬è Å›‰î ñùF¡ ²õ¬ó â™ô£‹ ࡠܼ÷£«ô î蘂A¡ø õó‹ «è†A¡«ø¡ “â™ô£‹ î¼A¡«ø¡ ⡬ù»‹ î¼A¡«ø¡ Hø¼‚è£è õ£›õF™ ï£Â‹ ⡬ù«ò àñ‚°ˆ î¼A¡«ø¡: HøK¡ ²¬ñ¬ò ²ñ‚è ⡬ù»‹ î°Fò£‚°õ£Œ” were sung by all. Ms Pauline sang the concluding song “∶¬í ï¡Á ∶¬í ï¡Á å«ó F¼„ê¬ðò£Œ õ£›õ¶ ∶¬í ï¡Á”.
Mr Gnanaraj thanked Rev M C Michael who despite his occupation as Parish Priest was wiling to travel and be with us inspiring. Further, he thanked all the participants who have made it and who could not make it to the gathering special thanks was offered to Mr Armstrong, Ms Pauline and their son Oscar Romero for hosting the meet. Fr Patrick and the caretaker of Emmaus were also thanked. Mr Antony Fernandez thanked Mr Gnanaraj for writing to all and contacting over telephones and finally caused us to meet and have a wonderful day. Mr Deepam suggested that all the members could go to MC’s place for a meeting. The date stands good as 2nd October. The members with their family started to leave at 5.30 pm carrying the memories to be kept alive until next year.
Birthday wishes to Joan Deepa and Santa Maria 16th October and John Divian 31st October.
This is draft minutes and members are requested to return the draft with corrections, additions, and deletions.
With best wishes
(Gnanaraj T X)
co ordinator x_g_raj@yahaoo.co.uk , 9444937659
[1] ICICI: Industrial Credit and Investment Corporation of India. A premier development bank now branched off to many activities on finance, insurance and loans.
[2] YCW & CWM Young Christian Workers and Catholic Workers Movement
Thursday, November 09, 2006
TRAFFIC COSTING & TRAFFIC ACCOUNTS FOR ACCOUNTS DEPT OF INDIAN RAILWAYS
TRAFFIC COSTING
Present Costing:
Unit cost of goods services computed by Zone and compiled by Rly Board at all India average.
Coaching done class wise for passenger service and parcel, luggage, postal and catering services.
Board computes commodity costing for 29 selected commodities that constitute 94 % of originating tonnage and 95 % of such earnings. Standard train costing is done based on the unit cost not compiled.
Specific train costing is carried out based on actual survey.
Uses:
1. financial appraisal of various projects
2. granting special rates
3. costing of special trains both freight and passenger services
Desirable objectives:
- knowing the cost of various elements for effective cost control facilitates improving productivity of services.
Hurdles:
zonal rly is taken as a unit- field unit cost cannot be ascertained as inefficient field units get merged with efficient field units- no appreciation for good performance and no punitive action for wasteful expenditure
Hassan Iqbal committee suggested activity based unit costing at field unit level – that is not done atleast divisional level study to be done since accounting system provides for that exercise
Fully distributed costs – no proper guide for formulation of rates for different commodities or different class of passengers travel – highly variable and keep revised
GTKM for all statistical purpose seems irregular
cost of van and shunting goods trains still done though obsolete – to be dispensed with
no marshalling
no smalls and repacking
suggestions:
filed unit study or divisional level
budgeting reforms- segregate fixed and variable costs – provide fully for fixed and for variables by determining the anticipated cost of performance and multiplying the same with the anticipated performance units – divide zone into various responsibility centres down to grass root level in divisions and workshops each responsibility centre to be given a unique code
short term variable cost – less than five years long term – five to ten years 11 years period prescribed for productivity tests
social service obligations
a. passenger and other coaching services
b. essential commodities carried below cost
c. operation of uneconomic branch lines
d. new lines opened for traffic during the last 15 years
5 SFC needs review – after five years or so when special locos are introduced
6. Line haul cost at various speeds to be done by Engg analysis not by accounting or statistical method
7. GTKMs based on standard rake composition duly updating it for additions and deletions – monthly basis
8. Train costing to be reviewed – enroute collection by TTE unreserved earnings etc to be taken into account
9. Costs at Rajdhani is excess 10 % more for I AC, 2 AC ACCC is compared to Mail/Express trains.
HISTORY OF TRAFFIC COSTING IN RAILWAYS
In 1962 at the instant of World Bank part of Statistics Dept
Present T C system started w e f 01.04.1979 Revised Classification (activity based cost)
Unit cost is the end result
Unit cost = total expenditure (source: C & R accounts – Book of Statistics) divided by Total performance (arrived from Statistical Statements of Statistical Dept)
How reliable? T C analysis will be reliable
subject to booking of correct expenditure appropriate detailed and sub detailed heads of relevant abstracts
if the CTRs are not correctly collected and compiled by statistical dept correct performance cannot be ascertained eg NTKM, VKM, EKM, TKM
Expenditure:
Demand Nos 1 & 2 total expenditure of I R as a full apportioned to all railways based on their activities proportionately
Demand no 3 – over heads
Demand no 4 to 10 4, 5, 6& 7 repairs and maintenance
8, 9 & 10 operating expenses
Demand no 11, 12 & 13 over head
C & R prepared gauge wise, demand wise, abstract wise and sub detailed head wise
statement 15 prepared by statistical dept and gauge wise expenditure bifurcated between coaching and goods on the basis of total GTKM earned ( prepared by Statistical Dept)
proforma 5 is a statement prepared by T C cell to bifurcate the cost of suburban expenditure from that of total coaching expenditure
Traffic costing – an introduction
Ø Railways second largest carriers in Asia
Ø Rail transport influence pricing of commodities
Ø Being a government undertaking railways are not run purely commercial basis
Ø Railways perform dual roles – maintaining commercial viability and obligation of meeting efficiently the increasing transport requirement or rapidly diversifying Indian economy
Ø Cost study helps in location of inefficiency in any dept of railways and facilitates removal of such
Ø Railways manufacture and sell transport – cost of products – transport of goods and passengers
Ø Primary responsibility - convey passengers and goods cheaply and quickly between the pair of points
Ø Suitable measures are to be adopted to reduce the cost of
- Haulage
- increased speed
- Comfort
- Safety
- Punctuality
Ø Railways transport cost one constituents of over all cost of commodities carried by them
Ø Railways basically are bulk carriers moving - raw materials and finished products
Ø Transport costs enter into cost of commodities and affects general price level
Ø The primary goal of rail management is to minimize railways’ transport cost without affecting the commercial viability and the quality of service
Uniqueness of rail costing:
1. not comparable with other commodities or other services – spread over all India uniform policy
2. product not homogenous – common assets are used for carrying passengers and goods traffic – with in both there are varieties – different classes of passenger traffic – luggage, parcels, RMS traffic- goods 45 categories
3. like any other transport ‘ a perishing commodity’ – cannot be stored – if a wagon not utilized for loading on a particular day its transport capacity is lost forever – not so for other commodities
4. requires creation of vast costly assets – over all cost depends on efficient use of these assets
CONCEPTS USED IN TRAFFIC COSTING:
Fixed cost: non variable cost, indirect cost or over heads – remain constant with a change in volume of traffic over a period – include establishment charges, interest depreciation and expenses on maintenance of P Way
Variable cost: marginal cost, incremental cost or differential cost – increase / decrease in direct proportion to changes in the volume of traffic – include lubricants, wages of running staff
Fully distributed cost: represent the total expenditure by railways - include working expenses, interest and depreciation on capital
Common cost: joint cost – due to non –m homogeneity of product mix same assets are used for providing passenger and goods services – expenses incurred jointly constitute common costs – allocated on the basis of certain ratios
Consignor’s cost: incurred by consignor – includes packing charges, charges for loading goods in to trucks, transportation from consignor’s warehouse to the rail head, unloading and loading in to wagons
Consignee’s cost: expenditure in taking delivery of consignment at destination station – cost of transport from destination station to consignee’s warehouse – includes unloading from wagons, loading in to trucks, transportation from rail head to warehouse
Inventory cost: imputed costs – interest charges on capital values of goods locked up during the period of transit
Inventory cost per tonne = V x r t
365
V - Value per tonne of goods x annual rate of interest
t - number of days in transit from consignor’s warehouse to that of consignee’s. Delay in transit puts the customer to lose because inventory will go up. Railways take longer time therefore road is preferred though the freight is lower
Trader’s cost: total expenses incurred by trader for this movement of goods by particular mode of transport. Includes consignor’s cost, consignee’s cost, inventory cost, and freight Ultimate cost when it reaches the market
Operator’s cost: expenses incurred by transport operator in providing the transport services. Includes requisition, maintenance, operation, improvement, replacement of transport facilities, compensation for damages, interest on borrowed money, dividend on capital
Economic Cost: includes cost of transport to the nation in terms of material and labor – excludes elements of taxes both central and State.
FUNCTIONS OF TRAFFIC COSTING CELL
Preparation of Proforma 5
suburban analysis MG/BG separately
freight unit cost / Green Book preparation MG/BG
coaching unit cost MG/BG
shunting engine hours cost
incremental cost ( marginal, differential)
End result / objectives of TC
rate fixing for fare and freight
project appraisal
managerial tool to assess performance of each dept
profitability analysis
cost consciousness and help control costs
5 shunting engine hour cost – shunting 1. By shunting engine by shunter
2. by shunting engine by driver
Operating cost of 2 is higher; hence it is essential to determine the hauling charges which are based on hourly basis.
No separate shunting engines are available in electrical engines in SR. however; under diesel separate engines are available for shunting
6 Incremental cost: Marginal cost to asses the actual additional expenditure incurred for moving as additional volume of traffic.
Basic increments:
1. C&R A/cs (where over heads such as A.K.I.M are not involved)
2. Certain heads of accounts which are directly involved will be taken into a/c.
3. By comparing the additional traffic of previous year useful in fixing the station to station.
It is fixed for certain commodities to attract bulk traffic between 2 pairs of point.
It will be lesser than the classified rate but it will not be lesser than incremental cost.
Eg.New port at Ennore - Movement of boulders from Mahendravadi Salem to Mathur (MG) movement of lines stone
This rate is applicable to a fixed commodity for specific traffic alone.
This attract bulk traffic / to compete with road traffic.
1).Other studies in Traffic Costing Cell.
Survey Ratio: Once in five years to arrive at the specific Ratios for different activities where joint costs are involved last study done in 1989 present 1995 study not yet approved.
MG
1) SS/KPD total Pay Rs.8000
BG Parcel
Goods Coaching Reservation
2).PWI – Assessment tire ETKM Equated Tract kilometer basic wear & tear repair
Maintenance (1&3km)
3).Plinth area of Serviced station buildings in Sidings 10 km=3km (Wear &Tear)
Stations are selected comprising of small, individual 7 large stations where activities such as marshalling, Terminal etc. are involved and data such as ETKM no of staff of different department, Plinth area of service buildings and other actual activities they under take & to work out the ratios
Train costing: Introduction of New trains
Argumentation/Cancellation
Stopping.
Direct Cost: Indirect Cost, Over heads, Central charges, Deduction to goods Trains.
Depreciation
Direct cost: 1:LOCO Interest
Repair & Maintenance
Fuel, Crew
Requirement of LOCOs
Total hours require for re of the train
Total working of loco 6 hours * ½ attaching + ½ detaching
Per day 10 hours 7 hours required out of 20 hours = 7 hours
7/20 x100= 35 % of required
Add ½ 5 % as spare capacity 125x10/35
Depreciation straight line method
Annual Depreciation=Present cost of asset-scrap value/life of asset =B%
B % of A = Annual Depreciation
b).Interest Present day cost x requirement of LOCO x 7%
c). Repairs Maintenance = Abstract c 500
Total expenditure of 2 under abstract 1500/ total no of Electric loco over zone
Over cost of repair & maintenance of LOCOs
It is converted to requirement of ratio
d).Fuel: Specific Fuel from statistical branch consumption x GTKM of train will give actual requirement s of fuel to run the train annually
This x cost fuel = Cost of Fuel per
Crew 1 Driver 1 Asst. Drawn Pay + DA+ TR etc + 30% running allowance
20% of cost drawn x 12 annual cost of crew.+ cost of Asst+ requirement 10hours but asked for 7 hours 7/10 x 100 = 70%
2 Coaches i) Depreciation
ii).Interest as composition is not disturbed requirement of coaches taken as fuel + 10% spares coaches present pay cost of coaches – class wise
iii).Repair & maintenance: Ac Non Ac
Figure obtained from coaches.
3). Generator Car: (Only in some train)
Fuel SFC
Lubricant
Staff
Train costing:
4) Cost of Train examination L Enroute)
Places/ No. of train examination points arrived assume train stop for 10 minutes
Staff = 1+XR 1ELc Annual Pay
2 KH 2 KH
Cost to be assumed
Indirect cost
Unit cost: 1. cost of track (P.Way) on GTKM
Unit cost per 1000 GTKM available in coaching unit cost and multiplied by
GTKM.
2. Cost of Signal: Based on Engine KM (Distance in time table)
Unit cost per EKM x this EKM
3. Cost of transportation: SM, Guard, Pointman etc
Based on the cost of Train KM
Cost of OHE: Unit cost of OHE x Total distance of Electrification
Terminal Expresses: Based on No of Passenger originated per class.
Unit cost of Booking
Ticket Checking Seat Capacity of each class x No of days of service annually
Enquiry & /Reservation
Special Services
Total Unit cost
Direct + Indirect
Add overloads + Central charges
Total cost to run a train + total cost of detention to goods train
10 % of total expenditure for Rajadhani & Shadabti
2 % of total expenditure for Mail & Express train
Nil % of total expenditure for ordinary train
Actual final Total/ 365 = cost for trip
Earnings:
For all classes / Coach Capacity + No of Coaches stc x fare whole distance + Reservation charges
NANJUNDAPPA COMMITTEE RECOMMENDATIONS
Ø Crisis in traffic costing world over
Ø Study by ICWA in 1960
Ø Monopoly government rate fixing
Ø Loss to be met by state governments
Ø Adhoc basis discontinued in 1948
Ø 1950’s bifurcation of coaching and goods on equity basis
Ø 1960 world bank suggested a cost cell
Ø 1970 passenger and EMU services loss identified
Ø 1986 task force – analysis of fully distributed costs – complex in nature passenger no class wise
Ø different costs, different capital, different interest
Ø lacks professional approach
Ø no normalization or annualized of huge expenditure
Suggestions:
1. survey ratios - frequent surveys
2. apportionment - simplified as against 1200 detailed accounts heads, 160 apportionment factors
3. annualisation or normalization – 3 to five years
4. methodology adopted for green book also for passenger (pink ) book
5. liability register to be maintained at the lowest cost centre
6. Accounting system to be revamped with professionals, finance ministry and cost accountants
7. demands to be fixed and variable – accounting complexes
8. interest accrued to be taken for assets replaced by DRF
9. data on deferential cost to be ascertained ( type & class)
10. divisional accounts to delinked from EMU costing
11. divisional accounts to be separated from repair and maintenance of HQ buildings, other railway buildings, welfare building such as central hospital
12. leasing charges to IRFC not be included in EMU costing
13. further breaking of variable cost of stores, staff, fuel and energy for each facet of operations
14. loss on branch lines to be made good by additional traffic on mainline based on avoidable cost
15. PRS to be used for collection of data on passengers
16. effective use of surplus staff and stores
17. cost of repairs and maintenance to be fixed assets, depreciation , interest to reckon long time variable cost
18. speed restrictions etc on cost consciousness – brochures and newsletters
19. posting of cost accountants in major cost centers
20. comprehensive book on traffic costing
21. spread costing information to wider area
TRAFFIC COSTING
Objectives:
provides basic data for rate fixing
provides data for project appraisal and evaluation of further capital investment
creates cost consciousness and control
helps carrying out profitability analysis
Fixed cost
Establishment charges, interest, depreciation, expenses on maintenance of p way etc
Variable
Fuel, lubricants, wages of running staff (taken for quoting special rates for attracting high rated traffic moving by road
Fully distributed or joint costs
Working expenses, interest, and depreciation on capital
TECHNIQUES OF T C
Direct – bifurcation of expenses between different gauges, coaching and goods services
Indirect – assessment through
1. engineering analysis based on experience and knowledge of engineers- ratios for apportionment of traffic maintenance , expenditure, repairs & maintenance of locomotives
2. Statistical analysis used for apportionment of common costs through survey method – ratios based on sample survey in S rly 1986 and 1995 statistical regression analysis based on correlation analysis simple and multiple regression analysis –more than one independent correlated or regressed with the dependent variable. Simple one dependent variable correlated with one independent variable
3. percent variable method – proportionate distribution of joint costs in relation to direct cost to total expenses
4. ratio of direct expenses – ratio of direct expenses of different services
5. Cost accountant’s method – based on behavior of different elements of cost by study of employee duty hours machine hours, and other factors required for producing passenger and goods services.
TRAIN COSTING
Direct costs:
locomotives – crew demand no 8
oil and lubricants demand no 10
depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 05
b. coaches depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 06
c. power generation of a/c fuel and lubricants demand no 10
stores demand no 8
staff demand no 8
d. cost of train examination demand no 9
e. catering
f. staff on train/train superintendent etc demand no 9
TOTAL DIRECT COST:
indirect costs:
cost of track maintenance demand no 4
cost of signaling demand no 7
other transportation costs demand no 9
cost of traction OHE demand no 7
cost of terminal services demand no 9
TOTAL DIRECT & INDIRECT COSTS
overhead charges
add over head charges 22%
Demand No 3,11 & 12 on direct and indirect costs cumulative up to OH
Central charges add central charges 0.46%
demand no 1 & 2 on direct and indirect costs cumulative up to
detention cost cost of detention to goods train 10% cumulative up to central charges
total cost per annum = total direct + indirect + OH+ CC + D / no of trips per year
= cost per trip
EMU COSTING
Direct
1. pay and allowances including consumable stores like lubricants d no 08 400
2. electricity charges d no 10 332
3. IOH, POH, ROH change of control cables at depots & workshops d no 06 400
Direct allocation
STAFF
D NO
SUB
DETAILED HD
ACTIVITY
08
410
Running staff
08
420
Shed and yard staff
08
430
Other operating expenses
Like lubricants, consumable
Stores
08
440
Miscellaneous
FUEL 10 332 energy supplied to EMUs
D NO
SUB
DETAILED HD
ACTIVITY
06
410
Repairs in sheds
06
420
Repairs in workshops
06
430
Periodical Over Hauls
06
440
Intermediate over Hauls
06
450
Special repairs and Over Hauls
06
460
Other repairs –
control cables Running repairs in
sheds and Workshops
Control cables – other repairs POH
Control cables – other repairs IOH
06
470
Miscellaneous charges-
trials and experiments,
special adjustments
over/under charges on cost
over/under charges Manufacture
& repairs
Indirect
1. cost of repairs and maintenance of P Way d no 04
2. cost of repairs and maintenance of Plant & Equipment d no 07
3. other transportation charges Train Passing etc d no 09
Common costs/joint costs based on GTKM, TKM, Survey Ratios
Over head
1. general superintendent d no 03
2. pension etc d no 13
Based on pro rata rupee basis
Depreciation
Railway wise, abstract wise and gauge wise (suburban)
Interest
Dividend pre 1980 6 %
Upto 1994 7 %
1995 7.5 %
Recommendations
EARNINGS
EXPENDITURE
Suburban earnings to be accounted
Separately
TKM basis for calculation not GTKM
Suburban earnings in JET separately
TKM to be inflated a factor of 1.5 %
Suburban earnings for traffic interchanged
With foreign railway separately
Track life to be 30 years instead of
55 years
Earnings at suburban section
a. license fee, VLR, book stall
b.
OHE life to be 20 years instead of
40 years
EMU costing not to take leasing charges
Cf: Nanjundappa Committee Report
Separate sub detailed head for EMU like in
Mumbai and Calcutta
LIMITATIONS AND SHORTCOMINGS OF TRAFFIC COSTING DEVELOPED IN IR
An efficient system is a sine quo non for a sound commercial costing
LIMITATIONS
REMEDIES
1. generates aggregated costs for various facets of operations fro the zonal railways as whole, where as financial accounts are prepared division wise – vide variations in the costs from one zone to another which remains unexplained – the figures appear prima facie unreliable
Instead of concentrating on production of aggregate costs, should switch over to route wise costing in each division
2.major portion ( 75 %) of expenditure on repairs and maintenance is common to both coaching and goods – is bifurcated on assumptions which can be questioned
The Railway Reforms Committee suggested RITES to develop suitable parameters for apportionment of joint costs
3 traffic costing data is available only after 18 months of the close do the financial year by which time it is only historical interest and cannot be profitably used by management
Essential that the costing system should be integrated with the management information system( MIS) and provide useful traffic costing data in real time- with the computerization it should be possible for the IR to produce costing reports in time and quarterly instead of only once in a year so that the effect of seasonal variations in the cost of operation can be gauged
4 in computation of cost the element of depreciation, interest and freight charges have not been included in a scientific and reasonable proportion
The defect may be corrected
5 the variation in unit cost from one Zonal Railways to another and within a zonal railway from year to year should be studied in greater detail so that cost centers with wasteful and avoidable expenditure are identified and corrective and remedial measures are taken.
When the division wise costing is introduced the reasons for variation from one division with another in a zonal railway should be analyzed by concerned zonal railway and suitable steps taken to eliminate waste and control costs
Purpose of cost accounting: to what extent has this been achieved in railway traffic costing where it is in vogue for some time- what extent has traffic costing helped in rational revision of rates and freight structure
Traffic costing of immense value in comparing financial working of different zonal railways, taking policy decisions in the matter of fare and freight structure, quotation of “station to station” rates, financial appraisal of railway projects and cost control
Large investment planned – aimed at self reliance – transport costing will gain importance
Becomes vital tool bin the hands of management for taking major policy decisions in areas which are nerve centers and control the profitability of the system.
• TRAFFIC COSTING – STAGE I
Step I
As a first step each item of expense is split gauge-wise-BG, MG and NG.
Detailed costing of NG is not undertaken.
Principle of direct allocation is followed for all those expenses which are incurred exclusively for a particular gauge.
Expenses related to more than one gauge are apportioned among different gauges based on certain ratio, determined on the basis of instructions issued by Railway Board.
The result of this exercise by accounts department is available in Statement XII.
Step II
In the second step expenses pertaining to EMU Services are taken out from the total expenses of those Railways, which operate these services. Due to heavy density of traffic on EMUs, the wear & tear of rolling stock and rails is very high and therefore economics of operating these services is worked out separately.
Step III
The third step in traffic costing is to bifurcate the total expenses of each gauge (after excluding EMU expenses) between Coaching and Goods services. As far as possible efforts are made to identify and allocate the expenses under each abstract directly to Coaching and Goods services. However joint items of expenses are apportioned between goods and coaching services on the basis of certain ratios developed with the help of various costing techniques. Result of this step is available in Statement 15 of Annual Statements.
FREIGHT COSTING
• After segregating the freight expenses under each head of account, they are required to be regrouped under following functional Groups :
• 1. Running (a) Through Goods
• (b) Van and shunting goods
• 2. Marshalling
• 3. Terminal Operation
• 4. Transhipment at Break of gauge point
• 5. Special Services for smalls (Repacking)
• 6. General overhead charges
For this, various statistical parameters which contribute in above mentioned areas are analysed in the form I of the Green Book to determine the ratios in which the expenses are to be apportioned in the above mentioned categories. The performance factors for through trains and Van & Shunting goods trains are also determined at this stage.
Applying these to the relevant head of account, the freight expenses are split into above mentioned functional groups.
Development of unit costs
Unit Cost is the cost per unit of out put for various functional group of transport.
Green Book is the Basic document for developing the goods unit costs.
It consists of seven schedules A to G.
Schedule A provides frame work for distributing Working expenses for goods services including interest and depreciation among various functional groups of services. The general over heads are then distributed to these functional groups on pro-rata rupee basis. Expenses of running (line haul cost) are further split in the cost of carrying unit i.e., wagon and cost of hauling pay load.
In the Schedule B, working expenses of various functional goods services are divided by the corresponding service units to arrive at the Unit costs.
Some of the Unit Costs of Schedule B are
Terminal Cost per tonne.
Total Terminal Cost per wagon in full loads
Line haul cost per train km.
Line haul cost per wagon km. etc.
Schedule C
This schedule consists of the Performa for further segregation of expenses into different sub-activities like expenses of documentation, traction-wise expenses of train engines, other operating expenses.
Schedule D This schedule uses the segregation of expenses carried out in schedule C, to arrive at various Unit costs. It gives the cost of documentation per invoice, cost of traction per engine hour, cost of traction per 1000 GTKM for each traction separately.
Schedule E
In this schedule the expenses under different abstracts are combined for computation of Unit Cost for various facets of operation such as cost of Terminal operation, cost of transhipment, cost of repacking etc. Unit costs are also calculated separately for through trains and Van & Shunting goods trains.
Schedule F
Under this schedule, the total expenses under each facet of operation as worked out in Schedule E are divided by the related service units to work out the unit costs. Central charges are also calculated as percentage of working expenses. Some of the unit costs worked out in schedule F.
Terminal services
(a) Cost of documentation per invoice
(b) Cost of handling per tonne
(c) Other terminal expenses per tonne
(d) Other terminal expenses per wagon (full load)
Repacking
(e) Cost of repacking of smalls per tonne per handling
Transhipment
(f) Cost of transhipment per tonne per transhipment
(a) BG
(b) MG
Marshalling
(g) Cost of marshalling per wagon per yard handled.
Prov & Maintenance of wagons
(h) Cost of Prov. And maint. Per wagon
Line Haul(Movement) costs
(i) Cost of line haul per 1000 GTKM for each traction separately
(j) Cost of line haul (other transportation) per 1000 GTKM
(k) Cost of line haul (other transportation) per Train Km.
(l) Cost of line haul track and signalling per Train Km.
(m) Cost of line haul track and signalling per 1000 GTKM
Overheads
(n) General overhead charges as % of direct costs
(o) Central charges as % of Total cost.
Schedule G
This schedule contains the summarised results of unit costs as worked out in Schedule B, D and F,
Group A Costs
These are fully distributed costs and include interest, depreciation and overheads.
Group B Costs
Under Group B Costs, Unit Costs for each type of traction and also for through goods and Van and shunting goods train are given. Over heads & central charges are shown separately as percentages. For working out total costs, these will have to be added to the Unit Cost at the end.
COSTING OF COACHING SERVICES
The Coaching expenses (excluding expenses for EMU services) are split
into various components in 19 stages as follows
Stage I - Distribute the expenses in Running and Terminals and overheads.
Stage II - Distribute Running expenses into Passenger, parcel and catering.
Stage III – Distribute Passenger expenses, into M/Exp and Ordinary.
Stage IV – Further Distribute Passenger expenses class-wise.
Stage V – Distribute Running Parcel into M/Exp. And Ordinary
Stage VI – Distribute Running Catering into M/Exp and Ordinary
Stage VII – Distribute Terminal Expenses into Booking, Ticket, Enquiry, Special. Services, Misc. Terminal, Parcel and Catering.
Stage VIII – Distribute booking expenses into M/Exp & Ordinary
Stage IX - Further distribute booking expenses class-wise.
Stage X – Distribute Ticket expenses into M/Exp & Ordinary.
Stage XI – Further Distribute Ticket expenses class-wise.
Stage XII – Further Distribute enquiry expenses into M/Exp & Ordinary.
Stage XIII – Further distribute enquiry expenses class-wise.
Stage XIV – Distribute expenses on special services into M/Exp. & ordinary
Stage XV – Further distribute expenses on special services class-wise
Stage XVI – Distribute Misc. Terminal expenses into M/Exp & Ordinary
Stage XVII – Further distribute Misc. Terminal expenses class-wise
Stage XVIII – Distribute Terminal Parcel expenses into M/Exp. & Ordinary.
State XIX – Distribute Terminal Catering expenses into M/Exp & Ordinary.
After carrying out the distribution at each stage, the overheads are also apportioned on pro-rata basis.
In the next stage the Running expenses are further regrouped under following groups.
1. Running Diesel (Repair & Maintenance Direct Expenses)
2. Running Electrical (Repair & Maintenance Direct Expenses)
3. Other transportation expenses including Train passing staff
4. Expenses of Engineering Department. (Track)
5. Cost of Signalling
6. Cost of provision and maintenance of carrying units
7. Terminal services( Booking)
8. Terminal Services (Tickets)
9. Terminal Services (Enquiry & Reservation)
10. Terminal services (Spl. Services)
11. Terminal services (Misc)
12. Terminal Services (Catering)
13. Terminal services (Parcel)
After grouping the various expenses under the above mentioned groups, Unit Costs are worked out for various Coaching Services.
Summary Form 6 – Overall Unit costs of services including overhead.
Summary Form 7 – Overall Unit Costs of services excluding over heads
Summary Form 8 – Unit Costs of Mail Express services excluding overheads
Summary Form 9 – Unit Cost for Ordinary services excluding overheads
Summary Form 10 –Class-wise Unit Costs for Mail Express services
Summary Form 11 –Class-wise Unit Costs for Ordinary Passenger Services
TRAFFIC ACCOUNTS
q Passenger earnings exceed freight earnings
q Formation of SWR reduction in Passenger earnings 22 %, Freight earnings 11 % over all 15 %
q Will not affect the OR – expenditure reduced by 18 % MYS, SBC, MYSS, CN/BNC
q Railway receipts freight to T/MAS for auditing
Distance
Weight
Class
Previously rationalized routes chargeable weight classification
Incorrect statements are prepared to detect over/under charges
Error advice sent to stations- accepted/disputed
Debits – Special Credits/ Debits
Now shortest
q Remittance by Traveling Cash Chest – cash bags –
q Cash Remittance Notes(in two parts), N I statement – cash office – cash witness – voucher 1 to station – 2 to Traffic accounts
q Auditing vouchers – Part A of Traffic Book is prepared
q Remittance in bank – credit scrolls to SAO/Books – for reconciliation – remittance into Bank – statement to Traffic Accounts
q Station balance sheet – audited Vs balance sheet
q Out standing section – disputed / accepted
TRAFFIC BOOK
A
B
C
D
Station earnings
Apportionment from
& to Foreign railways
Earnings not accounted
In stations – DAO/statements
Catering license Fee, cost of
Tender forms, rent received ,
REHLS [1] – through TC [2]s
CONCOR [3] earnings
Home railway
Ledger ( local &
apportioned)
CONCOR EARNINGS
CONCOR pays to railways for haulage 20/40 TEU ( Twenty feet Equivalent Units)
Over one KM for
International
Domestic
Loaded empty loaded empty
Different rates for
Domestic Rs 6 foreign Rs 8
Audit objection
1 each flat rail freight car can carry 2 TEU hall is running empty i.e. each flat carries 20” container only – loss in haulage, bogies, engines etc
Military warrants
Rs 20 per vouchers as service charges on realization credited to Demand No 3 299 (salary head)
Assessment:
Passenger 6 A both originating and carried
Freight 7 A originating
7 C carried
Budget
Passenger Freight
Coaching
Card tickets closing number destination wise
ARTS Floppy
Assessment: Monthly internal targets from Divisions to Traffic Commodity and division wise
Apportionment
Based on distance ( KMs) chargeable not track KM
Eg MAS – NDLS 2190 KMs
MAS – GDR 131 KMs
Therefore apportionment = 138/2190 * 100 = 6 % done by Computers
[1] Railway Employees Liberalized Health Scheme
[2] Transfer Certificates
[3] Container Corporation – a subsidiary of the Ministry of Railways
TRAFFIC COSTING
Present Costing:
Unit cost of goods services computed by Zone and compiled by Rly Board at all India average.
Coaching done class wise for passenger service and parcel, luggage, postal and catering services.
Board computes commodity costing for 29 selected commodities that constitute 94 % of originating tonnage and 95 % of such earnings. Standard train costing is done based on the unit cost not compiled.
Specific train costing is carried out based on actual survey.
Uses:
1. financial appraisal of various projects
2. granting special rates
3. costing of special trains both freight and passenger services
Desirable objectives:
- knowing the cost of various elements for effective cost control facilitates improving productivity of services.
Hurdles:
zonal rly is taken as a unit- field unit cost cannot be ascertained as inefficient field units get merged with efficient field units- no appreciation for good performance and no punitive action for wasteful expenditure
Hassan Iqbal committee suggested activity based unit costing at field unit level – that is not done atleast divisional level study to be done since accounting system provides for that exercise
Fully distributed costs – no proper guide for formulation of rates for different commodities or different class of passengers travel – highly variable and keep revised
GTKM for all statistical purpose seems irregular
cost of van and shunting goods trains still done though obsolete – to be dispensed with
no marshalling
no smalls and repacking
suggestions:
filed unit study or divisional level
budgeting reforms- segregate fixed and variable costs – provide fully for fixed and for variables by determining the anticipated cost of performance and multiplying the same with the anticipated performance units – divide zone into various responsibility centres down to grass root level in divisions and workshops each responsibility centre to be given a unique code
short term variable cost – less than five years long term – five to ten years 11 years period prescribed for productivity tests
social service obligations
a. passenger and other coaching services
b. essential commodities carried below cost
c. operation of uneconomic branch lines
d. new lines opened for traffic during the last 15 years
5 SFC needs review – after five years or so when special locos are introduced
6. Line haul cost at various speeds to be done by Engg analysis not by accounting or statistical method
7. GTKMs based on standard rake composition duly updating it for additions and deletions – monthly basis
8. Train costing to be reviewed – enroute collection by TTE unreserved earnings etc to be taken into account
9. Costs at Rajdhani is excess 10 % more for I AC, 2 AC ACCC is compared to Mail/Express trains.
HISTORY OF TRAFFIC COSTING IN RAILWAYS
In 1962 at the instant of World Bank part of Statistics Dept
Present T C system started w e f 01.04.1979 Revised Classification (activity based cost)
Unit cost is the end result
Unit cost = total expenditure (source: C & R accounts – Book of Statistics) divided by Total performance (arrived from Statistical Statements of Statistical Dept)
How reliable? T C analysis will be reliable
subject to booking of correct expenditure appropriate detailed and sub detailed heads of relevant abstracts
if the CTRs are not correctly collected and compiled by statistical dept correct performance cannot be ascertained eg NTKM, VKM, EKM, TKM
Expenditure:
Demand Nos 1 & 2 total expenditure of I R as a full apportioned to all railways based on their activities proportionately
Demand no 3 – over heads
Demand no 4 to 10 4, 5, 6& 7 repairs and maintenance
8, 9 & 10 operating expenses
Demand no 11, 12 & 13 over head
C & R prepared gauge wise, demand wise, abstract wise and sub detailed head wise
statement 15 prepared by statistical dept and gauge wise expenditure bifurcated between coaching and goods on the basis of total GTKM earned ( prepared by Statistical Dept)
proforma 5 is a statement prepared by T C cell to bifurcate the cost of suburban expenditure from that of total coaching expenditure
Traffic costing – an introduction
Ø Railways second largest carriers in Asia
Ø Rail transport influence pricing of commodities
Ø Being a government undertaking railways are not run purely commercial basis
Ø Railways perform dual roles – maintaining commercial viability and obligation of meeting efficiently the increasing transport requirement or rapidly diversifying Indian economy
Ø Cost study helps in location of inefficiency in any dept of railways and facilitates removal of such
Ø Railways manufacture and sell transport – cost of products – transport of goods and passengers
Ø Primary responsibility - convey passengers and goods cheaply and quickly between the pair of points
Ø Suitable measures are to be adopted to reduce the cost of
- Haulage
- increased speed
- Comfort
- Safety
- Punctuality
Ø Railways transport cost one constituents of over all cost of commodities carried by them
Ø Railways basically are bulk carriers moving - raw materials and finished products
Ø Transport costs enter into cost of commodities and affects general price level
Ø The primary goal of rail management is to minimize railways’ transport cost without affecting the commercial viability and the quality of service
Uniqueness of rail costing:
1. not comparable with other commodities or other services – spread over all India uniform policy
2. product not homogenous – common assets are used for carrying passengers and goods traffic – with in both there are varieties – different classes of passenger traffic – luggage, parcels, RMS traffic- goods 45 categories
3. like any other transport ‘ a perishing commodity’ – cannot be stored – if a wagon not utilized for loading on a particular day its transport capacity is lost forever – not so for other commodities
4. requires creation of vast costly assets – over all cost depends on efficient use of these assets
CONCEPTS USED IN TRAFFIC COSTING:
Fixed cost: non variable cost, indirect cost or over heads – remain constant with a change in volume of traffic over a period – include establishment charges, interest depreciation and expenses on maintenance of P Way
Variable cost: marginal cost, incremental cost or differential cost – increase / decrease in direct proportion to changes in the volume of traffic – include lubricants, wages of running staff
Fully distributed cost: represent the total expenditure by railways - include working expenses, interest and depreciation on capital
Common cost: joint cost – due to non –m homogeneity of product mix same assets are used for providing passenger and goods services – expenses incurred jointly constitute common costs – allocated on the basis of certain ratios
Consignor’s cost: incurred by consignor – includes packing charges, charges for loading goods in to trucks, transportation from consignor’s warehouse to the rail head, unloading and loading in to wagons
Consignee’s cost: expenditure in taking delivery of consignment at destination station – cost of transport from destination station to consignee’s warehouse – includes unloading from wagons, loading in to trucks, transportation from rail head to warehouse
Inventory cost: imputed costs – interest charges on capital values of goods locked up during the period of transit
Inventory cost per tonne = V x r t
365
V - Value per tonne of goods x annual rate of interest
t - number of days in transit from consignor’s warehouse to that of consignee’s. Delay in transit puts the customer to lose because inventory will go up. Railways take longer time therefore road is preferred though the freight is lower
Trader’s cost: total expenses incurred by trader for this movement of goods by particular mode of transport. Includes consignor’s cost, consignee’s cost, inventory cost, and freight Ultimate cost when it reaches the market
Operator’s cost: expenses incurred by transport operator in providing the transport services. Includes requisition, maintenance, operation, improvement, replacement of transport facilities, compensation for damages, interest on borrowed money, dividend on capital
Economic Cost: includes cost of transport to the nation in terms of material and labor – excludes elements of taxes both central and State.
FUNCTIONS OF TRAFFIC COSTING CELL
Preparation of Proforma 5
suburban analysis MG/BG separately
freight unit cost / Green Book preparation MG/BG
coaching unit cost MG/BG
shunting engine hours cost
incremental cost ( marginal, differential)
End result / objectives of TC
rate fixing for fare and freight
project appraisal
managerial tool to assess performance of each dept
profitability analysis
cost consciousness and help control costs
5 shunting engine hour cost – shunting 1. By shunting engine by shunter
2. by shunting engine by driver
Operating cost of 2 is higher; hence it is essential to determine the hauling charges which are based on hourly basis.
No separate shunting engines are available in electrical engines in SR. however; under diesel separate engines are available for shunting
6 Incremental cost: Marginal cost to asses the actual additional expenditure incurred for moving as additional volume of traffic.
Basic increments:
1. C&R A/cs (where over heads such as A.K.I.M are not involved)
2. Certain heads of accounts which are directly involved will be taken into a/c.
3. By comparing the additional traffic of previous year useful in fixing the station to station.
It is fixed for certain commodities to attract bulk traffic between 2 pairs of point.
It will be lesser than the classified rate but it will not be lesser than incremental cost.
Eg.New port at Ennore - Movement of boulders from Mahendravadi Salem to Mathur (MG) movement of lines stone
This rate is applicable to a fixed commodity for specific traffic alone.
This attract bulk traffic / to compete with road traffic.
1).Other studies in Traffic Costing Cell.
Survey Ratio: Once in five years to arrive at the specific Ratios for different activities where joint costs are involved last study done in 1989 present 1995 study not yet approved.
MG
1) SS/KPD total Pay Rs.8000
BG Parcel
Goods Coaching Reservation
2).PWI – Assessment tire ETKM Equated Tract kilometer basic wear & tear repair
Maintenance (1&3km)
3).Plinth area of Serviced station buildings in Sidings 10 km=3km (Wear &Tear)
Stations are selected comprising of small, individual 7 large stations where activities such as marshalling, Terminal etc. are involved and data such as ETKM no of staff of different department, Plinth area of service buildings and other actual activities they under take & to work out the ratios
Train costing: Introduction of New trains
Argumentation/Cancellation
Stopping.
Direct Cost: Indirect Cost, Over heads, Central charges, Deduction to goods Trains.
Depreciation
Direct cost: 1:LOCO Interest
Repair & Maintenance
Fuel, Crew
Requirement of LOCOs
Total hours require for re of the train
Total working of loco 6 hours * ½ attaching + ½ detaching
Per day 10 hours 7 hours required out of 20 hours = 7 hours
7/20 x100= 35 % of required
Add ½ 5 % as spare capacity 125x10/35
Depreciation straight line method
Annual Depreciation=Present cost of asset-scrap value/life of asset =B%
B % of A = Annual Depreciation
b).Interest Present day cost x requirement of LOCO x 7%
c). Repairs Maintenance = Abstract c 500
Total expenditure of 2 under abstract 1500/ total no of Electric loco over zone
Over cost of repair & maintenance of LOCOs
It is converted to requirement of ratio
d).Fuel: Specific Fuel from statistical branch consumption x GTKM of train will give actual requirement s of fuel to run the train annually
This x cost fuel = Cost of Fuel per
Crew 1 Driver 1 Asst. Drawn Pay + DA+ TR etc + 30% running allowance
20% of cost drawn x 12 annual cost of crew.+ cost of Asst+ requirement 10hours but asked for 7 hours 7/10 x 100 = 70%
2 Coaches i) Depreciation
ii).Interest as composition is not disturbed requirement of coaches taken as fuel + 10% spares coaches present pay cost of coaches – class wise
iii).Repair & maintenance: Ac Non Ac
Figure obtained from coaches.
3). Generator Car: (Only in some train)
Fuel SFC
Lubricant
Staff
Train costing:
4) Cost of Train examination L Enroute)
Places/ No. of train examination points arrived assume train stop for 10 minutes
Staff = 1+XR 1ELc Annual Pay
2 KH 2 KH
Cost to be assumed
Indirect cost
Unit cost: 1. cost of track (P.Way) on GTKM
Unit cost per 1000 GTKM available in coaching unit cost and multiplied by
GTKM.
2. Cost of Signal: Based on Engine KM (Distance in time table)
Unit cost per EKM x this EKM
3. Cost of transportation: SM, Guard, Pointman etc
Based on the cost of Train KM
Cost of OHE: Unit cost of OHE x Total distance of Electrification
Terminal Expresses: Based on No of Passenger originated per class.
Unit cost of Booking
Ticket Checking Seat Capacity of each class x No of days of service annually
Enquiry & /Reservation
Special Services
Total Unit cost
Direct + Indirect
Add overloads + Central charges
Total cost to run a train + total cost of detention to goods train
10 % of total expenditure for Rajadhani & Shadabti
2 % of total expenditure for Mail & Express train
Nil % of total expenditure for ordinary train
Actual final Total/ 365 = cost for trip
Earnings:
For all classes / Coach Capacity + No of Coaches stc x fare whole distance + Reservation charges
NANJUNDAPPA COMMITTEE RECOMMENDATIONS
Ø Crisis in traffic costing world over
Ø Study by ICWA in 1960
Ø Monopoly government rate fixing
Ø Loss to be met by state governments
Ø Adhoc basis discontinued in 1948
Ø 1950’s bifurcation of coaching and goods on equity basis
Ø 1960 world bank suggested a cost cell
Ø 1970 passenger and EMU services loss identified
Ø 1986 task force – analysis of fully distributed costs – complex in nature passenger no class wise
Ø different costs, different capital, different interest
Ø lacks professional approach
Ø no normalization or annualized of huge expenditure
Suggestions:
1. survey ratios - frequent surveys
2. apportionment - simplified as against 1200 detailed accounts heads, 160 apportionment factors
3. annualisation or normalization – 3 to five years
4. methodology adopted for green book also for passenger (pink ) book
5. liability register to be maintained at the lowest cost centre
6. Accounting system to be revamped with professionals, finance ministry and cost accountants
7. demands to be fixed and variable – accounting complexes
8. interest accrued to be taken for assets replaced by DRF
9. data on deferential cost to be ascertained ( type & class)
10. divisional accounts to delinked from EMU costing
11. divisional accounts to be separated from repair and maintenance of HQ buildings, other railway buildings, welfare building such as central hospital
12. leasing charges to IRFC not be included in EMU costing
13. further breaking of variable cost of stores, staff, fuel and energy for each facet of operations
14. loss on branch lines to be made good by additional traffic on mainline based on avoidable cost
15. PRS to be used for collection of data on passengers
16. effective use of surplus staff and stores
17. cost of repairs and maintenance to be fixed assets, depreciation , interest to reckon long time variable cost
18. speed restrictions etc on cost consciousness – brochures and newsletters
19. posting of cost accountants in major cost centers
20. comprehensive book on traffic costing
21. spread costing information to wider area
TRAFFIC COSTING
Objectives:
provides basic data for rate fixing
provides data for project appraisal and evaluation of further capital investment
creates cost consciousness and control
helps carrying out profitability analysis
Fixed cost
Establishment charges, interest, depreciation, expenses on maintenance of p way etc
Variable
Fuel, lubricants, wages of running staff (taken for quoting special rates for attracting high rated traffic moving by road
Fully distributed or joint costs
Working expenses, interest, and depreciation on capital
TECHNIQUES OF T C
Direct – bifurcation of expenses between different gauges, coaching and goods services
Indirect – assessment through
1. engineering analysis based on experience and knowledge of engineers- ratios for apportionment of traffic maintenance , expenditure, repairs & maintenance of locomotives
2. Statistical analysis used for apportionment of common costs through survey method – ratios based on sample survey in S rly 1986 and 1995 statistical regression analysis based on correlation analysis simple and multiple regression analysis –more than one independent correlated or regressed with the dependent variable. Simple one dependent variable correlated with one independent variable
3. percent variable method – proportionate distribution of joint costs in relation to direct cost to total expenses
4. ratio of direct expenses – ratio of direct expenses of different services
5. Cost accountant’s method – based on behavior of different elements of cost by study of employee duty hours machine hours, and other factors required for producing passenger and goods services.
TRAIN COSTING
Direct costs:
locomotives – crew demand no 8
oil and lubricants demand no 10
depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 05
b. coaches depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 06
c. power generation of a/c fuel and lubricants demand no 10
stores demand no 8
staff demand no 8
d. cost of train examination demand no 9
e. catering
f. staff on train/train superintendent etc demand no 9
TOTAL DIRECT COST:
indirect costs:
cost of track maintenance demand no 4
cost of signaling demand no 7
other transportation costs demand no 9
cost of traction OHE demand no 7
cost of terminal services demand no 9
TOTAL DIRECT & INDIRECT COSTS
overhead charges
add over head charges 22%
Demand No 3,11 & 12 on direct and indirect costs cumulative up to OH
Central charges add central charges 0.46%
demand no 1 & 2 on direct and indirect costs cumulative up to
detention cost cost of detention to goods train 10% cumulative up to central charges
total cost per annum = total direct + indirect + OH+ CC + D / no of trips per year
= cost per trip
EMU COSTING
Direct
1. pay and allowances including consumable stores like lubricants d no 08 400
2. electricity charges d no 10 332
3. IOH, POH, ROH change of control cables at depots & workshops d no 06 400
Direct allocation
STAFF
D NO
SUB
DETAILED HD
ACTIVITY
08
410
Running staff
08
420
Shed and yard staff
08
430
Other operating expenses
Like lubricants, consumable
Stores
08
440
Miscellaneous
FUEL 10 332 energy supplied to EMUs
D NO
SUB
DETAILED HD
ACTIVITY
06
410
Repairs in sheds
06
420
Repairs in workshops
06
430
Periodical Over Hauls
06
440
Intermediate over Hauls
06
450
Special repairs and Over Hauls
06
460
Other repairs –
control cables Running repairs in
sheds and Workshops
Control cables – other repairs POH
Control cables – other repairs IOH
06
470
Miscellaneous charges-
trials and experiments,
special adjustments
over/under charges on cost
over/under charges Manufacture
& repairs
Indirect
1. cost of repairs and maintenance of P Way d no 04
2. cost of repairs and maintenance of Plant & Equipment d no 07
3. other transportation charges Train Passing etc d no 09
Common costs/joint costs based on GTKM, TKM, Survey Ratios
Over head
1. general superintendent d no 03
2. pension etc d no 13
Based on pro rata rupee basis
Depreciation
Railway wise, abstract wise and gauge wise (suburban)
Interest
Dividend pre 1980 6 %
Upto 1994 7 %
1995 7.5 %
Recommendations
EARNINGS
EXPENDITURE
Suburban earnings to be accounted
Separately
TKM basis for calculation not GTKM
Suburban earnings in JET separately
TKM to be inflated a factor of 1.5 %
Suburban earnings for traffic interchanged
With foreign railway separately
Track life to be 30 years instead of
55 years
Earnings at suburban section
a. license fee, VLR, book stall
b.
OHE life to be 20 years instead of
40 years
EMU costing not to take leasing charges
Cf: Nanjundappa Committee Report
Separate sub detailed head for EMU like in
Mumbai and Calcutta
LIMITATIONS AND SHORTCOMINGS OF TRAFFIC COSTING DEVELOPED IN IR
An efficient system is a sine quo non for a sound commercial costing
LIMITATIONS
REMEDIES
1. generates aggregated costs for various facets of operations fro the zonal railways as whole, where as financial accounts are prepared division wise – vide variations in the costs from one zone to another which remains unexplained – the figures appear prima facie unreliable
Instead of concentrating on production of aggregate costs, should switch over to route wise costing in each division
2.major portion ( 75 %) of expenditure on repairs and maintenance is common to both coaching and goods – is bifurcated on assumptions which can be questioned
The Railway Reforms Committee suggested RITES to develop suitable parameters for apportionment of joint costs
3 traffic costing data is available only after 18 months of the close do the financial year by which time it is only historical interest and cannot be profitably used by management
Essential that the costing system should be integrated with the management information system( MIS) and provide useful traffic costing data in real time- with the computerization it should be possible for the IR to produce costing reports in time and quarterly instead of only once in a year so that the effect of seasonal variations in the cost of operation can be gauged
4 in computation of cost the element of depreciation, interest and freight charges have not been included in a scientific and reasonable proportion
The defect may be corrected
5 the variation in unit cost from one Zonal Railways to another and within a zonal railway from year to year should be studied in greater detail so that cost centers with wasteful and avoidable expenditure are identified and corrective and remedial measures are taken.
When the division wise costing is introduced the reasons for variation from one division with another in a zonal railway should be analyzed by concerned zonal railway and suitable steps taken to eliminate waste and control costs
Purpose of cost accounting: to what extent has this been achieved in railway traffic costing where it is in vogue for some time- what extent has traffic costing helped in rational revision of rates and freight structure
Traffic costing of immense value in comparing financial working of different zonal railways, taking policy decisions in the matter of fare and freight structure, quotation of “station to station” rates, financial appraisal of railway projects and cost control
Large investment planned – aimed at self reliance – transport costing will gain importance
Becomes vital tool bin the hands of management for taking major policy decisions in areas which are nerve centers and control the profitability of the system.
• TRAFFIC COSTING – STAGE I
Step I
As a first step each item of expense is split gauge-wise-BG, MG and NG.
Detailed costing of NG is not undertaken.
Principle of direct allocation is followed for all those expenses which are incurred exclusively for a particular gauge.
Expenses related to more than one gauge are apportioned among different gauges based on certain ratio, determined on the basis of instructions issued by Railway Board.
The result of this exercise by accounts department is available in Statement XII.
Step II
In the second step expenses pertaining to EMU Services are taken out from the total expenses of those Railways, which operate these services. Due to heavy density of traffic on EMUs, the wear & tear of rolling stock and rails is very high and therefore economics of operating these services is worked out separately.
Step III
The third step in traffic costing is to bifurcate the total expenses of each gauge (after excluding EMU expenses) between Coaching and Goods services. As far as possible efforts are made to identify and allocate the expenses under each abstract directly to Coaching and Goods services. However joint items of expenses are apportioned between goods and coaching services on the basis of certain ratios developed with the help of various costing techniques. Result of this step is available in Statement 15 of Annual Statements.
FREIGHT COSTING
• After segregating the freight expenses under each head of account, they are required to be regrouped under following functional Groups :
• 1. Running (a) Through Goods
• (b) Van and shunting goods
• 2. Marshalling
• 3. Terminal Operation
• 4. Transhipment at Break of gauge point
• 5. Special Services for smalls (Repacking)
• 6. General overhead charges
For this, various statistical parameters which contribute in above mentioned areas are analysed in the form I of the Green Book to determine the ratios in which the expenses are to be apportioned in the above mentioned categories. The performance factors for through trains and Van & Shunting goods trains are also determined at this stage.
Applying these to the relevant head of account, the freight expenses are split into above mentioned functional groups.
Development of unit costs
Unit Cost is the cost per unit of out put for various functional group of transport.
Green Book is the Basic document for developing the goods unit costs.
It consists of seven schedules A to G.
Schedule A provides frame work for distributing Working expenses for goods services including interest and depreciation among various functional groups of services. The general over heads are then distributed to these functional groups on pro-rata rupee basis. Expenses of running (line haul cost) are further split in the cost of carrying unit i.e., wagon and cost of hauling pay load.
In the Schedule B, working expenses of various functional goods services are divided by the corresponding service units to arrive at the Unit costs.
Some of the Unit Costs of Schedule B are
Terminal Cost per tonne.
Total Terminal Cost per wagon in full loads
Line haul cost per train km.
Line haul cost per wagon km. etc.
Schedule C
This schedule consists of the Performa for further segregation of expenses into different sub-activities like expenses of documentation, traction-wise expenses of train engines, other operating expenses.
Schedule D This schedule uses the segregation of expenses carried out in schedule C, to arrive at various Unit costs. It gives the cost of documentation per invoice, cost of traction per engine hour, cost of traction per 1000 GTKM for each traction separately.
Schedule E
In this schedule the expenses under different abstracts are combined for computation of Unit Cost for various facets of operation such as cost of Terminal operation, cost of transhipment, cost of repacking etc. Unit costs are also calculated separately for through trains and Van & Shunting goods trains.
Schedule F
Under this schedule, the total expenses under each facet of operation as worked out in Schedule E are divided by the related service units to work out the unit costs. Central charges are also calculated as percentage of working expenses. Some of the unit costs worked out in schedule F.
Terminal services
(a) Cost of documentation per invoice
(b) Cost of handling per tonne
(c) Other terminal expenses per tonne
(d) Other terminal expenses per wagon (full load)
Repacking
(e) Cost of repacking of smalls per tonne per handling
Transhipment
(f) Cost of transhipment per tonne per transhipment
(a) BG
(b) MG
Marshalling
(g) Cost of marshalling per wagon per yard handled.
Prov & Maintenance of wagons
(h) Cost of Prov. And maint. Per wagon
Line Haul(Movement) costs
(i) Cost of line haul per 1000 GTKM for each traction separately
(j) Cost of line haul (other transportation) per 1000 GTKM
(k) Cost of line haul (other transportation) per Train Km.
(l) Cost of line haul track and signalling per Train Km.
(m) Cost of line haul track and signalling per 1000 GTKM
Overheads
(n) General overhead charges as % of direct costs
(o) Central charges as % of Total cost.
Schedule G
This schedule contains the summarised results of unit costs as worked out in Schedule B, D and F,
Group A Costs
These are fully distributed costs and include interest, depreciation and overheads.
Group B Costs
Under Group B Costs, Unit Costs for each type of traction and also for through goods and Van and shunting goods train are given. Over heads & central charges are shown separately as percentages. For working out total costs, these will have to be added to the Unit Cost at the end.
COSTING OF COACHING SERVICES
The Coaching expenses (excluding expenses for EMU services) are split
into various components in 19 stages as follows
Stage I - Distribute the expenses in Running and Terminals and overheads.
Stage II - Distribute Running expenses into Passenger, parcel and catering.
Stage III – Distribute Passenger expenses, into M/Exp and Ordinary.
Stage IV – Further Distribute Passenger expenses class-wise.
Stage V – Distribute Running Parcel into M/Exp. And Ordinary
Stage VI – Distribute Running Catering into M/Exp and Ordinary
Stage VII – Distribute Terminal Expenses into Booking, Ticket, Enquiry, Special. Services, Misc. Terminal, Parcel and Catering.
Stage VIII – Distribute booking expenses into M/Exp & Ordinary
Stage IX - Further distribute booking expenses class-wise.
Stage X – Distribute Ticket expenses into M/Exp & Ordinary.
Stage XI – Further Distribute Ticket expenses class-wise.
Stage XII – Further Distribute enquiry expenses into M/Exp & Ordinary.
Stage XIII – Further distribute enquiry expenses class-wise.
Stage XIV – Distribute expenses on special services into M/Exp. & ordinary
Stage XV – Further distribute expenses on special services class-wise
Stage XVI – Distribute Misc. Terminal expenses into M/Exp & Ordinary
Stage XVII – Further distribute Misc. Terminal expenses class-wise
Stage XVIII – Distribute Terminal Parcel expenses into M/Exp. & Ordinary.
State XIX – Distribute Terminal Catering expenses into M/Exp & Ordinary.
After carrying out the distribution at each stage, the overheads are also apportioned on pro-rata basis.
In the next stage the Running expenses are further regrouped under following groups.
1. Running Diesel (Repair & Maintenance Direct Expenses)
2. Running Electrical (Repair & Maintenance Direct Expenses)
3. Other transportation expenses including Train passing staff
4. Expenses of Engineering Department. (Track)
5. Cost of Signalling
6. Cost of provision and maintenance of carrying units
7. Terminal services( Booking)
8. Terminal Services (Tickets)
9. Terminal Services (Enquiry & Reservation)
10. Terminal services (Spl. Services)
11. Terminal services (Misc)
12. Terminal Services (Catering)
13. Terminal services (Parcel)
After grouping the various expenses under the above mentioned groups, Unit Costs are worked out for various Coaching Services.
Summary Form 6 – Overall Unit costs of services including overhead.
Summary Form 7 – Overall Unit Costs of services excluding over heads
Summary Form 8 – Unit Costs of Mail Express services excluding overheads
Summary Form 9 – Unit Cost for Ordinary services excluding overheads
Summary Form 10 –Class-wise Unit Costs for Mail Express services
Summary Form 11 –Class-wise Unit Costs for Ordinary Passenger Services
TRAFFIC ACCOUNTS
q Passenger earnings exceed freight earnings
q Formation of SWR reduction in Passenger earnings 22 %, Freight earnings 11 % over all 15 %
q Will not affect the OR – expenditure reduced by 18 % MYS, SBC, MYSS, CN/BNC
q Railway receipts freight to T/MAS for auditing
Distance
Weight
Class
Previously rationalized routes chargeable weight classification
Incorrect statements are prepared to detect over/under charges
Error advice sent to stations- accepted/disputed
Debits – Special Credits/ Debits
Now shortest
q Remittance by Traveling Cash Chest – cash bags –
q Cash Remittance Notes(in two parts), N I statement – cash office – cash witness – voucher 1 to station – 2 to Traffic accounts
q Auditing vouchers – Part A of Traffic Book is prepared
q Remittance in bank – credit scrolls to SAO/Books – for reconciliation – remittance into Bank – statement to Traffic Accounts
q Station balance sheet – audited Vs balance sheet
q Out standing section – disputed / accepted
TRAFFIC BOOK
A
B
C
D
Station earnings
Apportionment from
& to Foreign railways
Earnings not accounted
In stations – DAO/statements
Catering license Fee, cost of
Tender forms, rent received ,
REHLS [1] – through TC [2]s
CONCOR [3] earnings
Home railway
Ledger ( local &
apportioned)
CONCOR EARNINGS
CONCOR pays to railways for haulage 20/40 TEU ( Twenty feet Equivalent Units)
Over one KM for
International
Domestic
Loaded empty loaded empty
Different rates for
Domestic Rs 6 foreign Rs 8
Audit objection
1 each flat rail freight car can carry 2 TEU hall is running empty i.e. each flat carries 20” container only – loss in haulage, bogies, engines etc
Military warrants
Rs 20 per vouchers as service charges on realization credited to Demand No 3 299 (salary head)
Assessment:
Passenger 6 A both originating and carried
Freight 7 A originating
7 C carried
Budget
Passenger Freight
Coaching
Card tickets closing number destination wise
ARTS Floppy
Assessment: Monthly internal targets from Divisions to Traffic Commodity and division wise
Apportionment
Based on distance ( KMs) chargeable not track KM
Eg MAS – NDLS 2190 KMs
MAS – GDR 131 KMs
Therefore apportionment = 138/2190 * 100 = 6 % done by Computers
[1] Railway Employees Liberalized Health Scheme
[2] Transfer Certificates
[3] Container Corporation – a subsidiary of the Ministry of Railways
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