STOCK VERIFICATION BRANCH

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STOCK VERIFICATION BRANCH Its CHANGING ROLE
FUNCTION
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• Nothing can substitute for physical
• verification.

A few changes in the working pattern of ISAs
introduced.
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Open Line Units Emphasis shifted from
routine scrutiny of accounts to certain new
areas like -
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• Collection of details of debits (high-value
  items)
• from Divisional Accounts Office / Workshop
• Accounts Office / Feeding Stores Depots and
• verifying the accounting at the receiving ends.

Sr.DFMs Sr.AFAs (Workshops) advised to furnish
details of debits (relating to stores) above
Rs.50000/- to FACAO/SW/PER.
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2. Collection of details of payment in respect of
Rails from Steel Bills Section/PER.
Collection of booking instructions from
PCEs Office and checking the accountal at
the receiving ends.
3. Attempting Special Studies and Reviewing Works
Contracts.
4. Identifying surplus Rails P.Way Fittings at
P.Way units, FBW Plants P.Way Depots.
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DETAILS
of a few Special Studies conducted by ISAs
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Checks at ENGINEERING Department
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SPECIAL CHECK of PROCURMENT of RAILS 60 KG
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FINDINGS

• Overall excess availability of 5835 MTs at FBW
  Plant
• due to non-drawal by executives and supplies
  received
• against previous years purchase orders.
  

• Apart from the excess at FBW, an excess of
• 813 MTs valuing Rs.3.73 Crores was also
  noticed in
• ONE single P.Way Unit

• Delay in execution of CTR Works (FWP 2007-08) to
• the extent of 14.38 Kms

• Absence of proper monitoring system to regulate
• supply of rails according to requirement /
  progress
• of work.

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REPORT
GENERAL MANAGER appraised vide FACAO/SWs
Note of Feb 2008
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RESULTS
HQ/Engg Branch AGREED TO REDUCE the Indent for
Rails 60kg for 2008-09 by 5835 MTs
Valuing Rs.26 Crores which constitutes about
10 of the Budget Grant
for 2008-09 under the Plan Head TRACK RENEWALS
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Review of Contract for Dismantling Removal
of Damaged PSC Sleepers By ISAs during 2005-06
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Reviewed Contract Agreement of July 2004 for
Dismantling Removal of 14186 PSC Sleepers
on MAS-GDR Section
RESULTS proved to be an EYE-OPENER
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As per Agreement the contractor has to
dismantle/break the damaged PSC Sleeper, take
the HTS Wires but return the MC Inserts to the
Railways at the location specified in the
agreement.
The contractor had to pay the Railways
Rs.30.40p per Sleeper towards the value of HTS
Wires as per the Agreement (after deducting
Labour Transport Charges )
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FINDINGS
The value of HTS Wires (Steel Content) in the
damaged sleeper was not CORRECTLY ASSESSED.
The amount due to Rlys. worked out to Rs.114/-
per Sleeper after correct assessment made by
Accounts


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REPORT
The LOSS of Rs.12.40 Lakhs on account of failure
to correctly assess the value of the steel
content was reported to PCE/MAS We also
suggested that, in future contracts, the MC
Inserts may also be allowed to be taken by the
contractor and the worth of damaged sleepers
calculated accordingly.
REPORT
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RESULT
HQ Engg. Branch directed all Divisions to take
note of Accounts Suggestions. Divl. Engg.
Branch in Feb 2007 sought views of FA/SW to
adopt Rs.152.40 per Slpr. in the future
agreements.
However, Sr.DEN was advised to work out the
value adopting the latest auction rates for
scrap steel duly illustrating that the value
would work out to Rs.240/- per Sleeper to be
vetted by the associate finance.
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STUDY OF PROCUREMENT DISTRIBUTION of CEMENT
for Works on Zonal Contract and Sanctioned
Estimates
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FINDINGS
In respect of Transportation from one executive
to another, application of varying rates, as
per the Zonal Contract of the Concerned zones
were noticed resulting in a loss to Rlys.
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REPORT
Avoidable expenditure on Transportation,
Demurrage, Wharfage Unloading Charges to the
tune of Rs.8.32 Lakhs was pointed to
PCE/MAS
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RESULTS
PCE has agreed to include supply of cement in
the Supply Schedule of Items in the Zonal
Contracts w.e.f. 01.07.08 on the same lines of
Construction Organisation.
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Workshops Stores Depots
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Stock Items
Highlighting the position of materials in excess
of 3 months requirement on the shop floor
periodically to the PHODs concerned COS as
well.
Identify items where a scope/need exists for
pruning the EAR/AAC calculating the Quantities at
Shop Floor Depot. Advise the Stores Accounts
Office for action at the Quantity Vetting stage.
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Non-Stock Items
Identify Excess and Non-moving items advise
controlling officers.
Serious/high value cases advised to the
PHODs concerned. COS also advised for reviewing
the existing indents for reduction of quantity
or dispensation.
Advise Associate Accounts concerned for a check
at the indent vetting stage
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Special Checks / Studies in Workshops
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STUDY OF THE SYSTEM OF ADVISE OF FAILURES
WARRANTY REPLACEMENTS Of BATTERIES 800AH
1100AH AT Train Lighting AC Deluxe Shop
at Carriage Works /PER
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FINDINGS
Noticed Non replacement of Batteries 800AH /
1100AH failed within the WARRANTY PERIOD even
after a lapse of 9 months.

Delayed replacement by firm with the Original
Lug Date would reduce considerably the warranty
cover on the residual serviceable life of the
battery
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RESULTS
CESE agreed for recovering Rs.13.78 Lakhs
from the firms bills
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Southern Railway hopes that the studies
referred in this presentation would be of
great use serve as a guidance tool
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THANK YOU