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-: Project-Work: -

{Submitted for the Degree B.Com. Honours in


Accounting & Finance
Under the University of Calcutta}

-: TITLE OF THE PROJECT: -

An Analysis of the 5 Years’ Financial Activities


Of
Indian Railways

Submitted By:
Name of the Candidate: Shouvik Paul
Registration No.:
Name of the College: Serampore College
C.U. Roll no.:
SUPERVISED BY:
Name of the Supervisor: Prof. Sudipta Saha Roy
Name of the College: Serampore College

Month & Year of Submission of


the Project:
January, 2019

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Annexure- IA

-: SUPERVISOR’S CERTIFICATE: -

This is to certify that, Mr. Shouvik Paul, the student of B.COM. Honours in
Accounting and Finance of the Serampore College, under the University of
Calcutta has completed assignment under my supervision and guidance for his
Project Work and prepared a Project Report with the Title “An Analysis of the
5 Years’ Financial Activities of Indian Railways”, which he is submitting, is his
genuine and original work to the best of my knowledge.

Signature: Name: Prof. Sudipta Saha Roy.


Place: Designation: Assistant Professor.
Dated: Name of the College: Serampore college

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

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Annexure-IB

STUDENT’S DECLARATIONS

I, hereby declare that, the Project Work, with the title named “An Analysis
of the 5 Years’ Financial Activities of Indian Railways”, submitted by me for
the partial fulfillment of the degree of B.COM. (Honours) in Accounting and
Finance under the University of Calcutta is my original work and has not
been submitted earlier to any other University/Institutions for the
fulfillment of the requirement for any course of study.

I also declare that no chapter of this Manuscript, in whole or in part has been
incorporated in this report from any earlier work, done by other of by me.
However, extracts of any literature, which has been used for this report has
been duly acknowledged providing details of such literature in the
Preference Section.

Place: Signature:
Dated: Name: Shouvik Paul
Residential Address: 45/F, Barabgan
Lane, Serampore, Hooghly.
Registration No.:

-------------------------------------------------
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: Acknowledgements :

Theoretical knowledge without practical application is incomplete.


Wherefore, the exposure to practical world gives a new dimension to
whatever has been grasped till time and it also gives a chance to understand
that where the leaned knowledge can be applied.

I, as a student of the Serampore College, would like to express substantial


appreciation and sincere gratitude to my supervisor prof. Sudipta Saha Roy
of Serampore college for providing me valuable guidance and inputs
without whose co-operation and encouragement the study and the
resultant project work would not have got a shape. The other persons who
assisted me in preparing this work are my father, his colleagues and other
people who have the knowledges and experiences about it, I also convey
special thanks to them for their invaluable guidance, keen interests, moral
supports and co-operations through my project session.

It gives me a great pleasure to express my gratitude to the author of various


books and websites from where I have obtained relevant essential
information and data, without their vital help, the Project Work couldn’t
be a successful presentation.

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P a g e 4 | 109
-: Table of the Contents: -

Subjects Page No.


Front Page: 1
Supervisor’s Certificate:
2
Student’s Declarations:
3
Acknowledgements:
4
Table of the Contents:
5
Chapter One: -
1.1: Introduction to the Indian Railways:
7
1.2: Why have you chosen this topic?:
8
1.3: Review of Literatures:
8
1.4: Objectives of the Study:
11
1.5: Methodology:
11
Chapter Two: -
2.1: Introductory Statements Regarding Indian Railways:
14
2.2: Indian Railways at the Time of British Raj in India:
14
2.3: Indian Railways – Present Days:
15
2.4: Organizational Structures:
18
2.5: Apex Management:
19
2.6: Services Provided by the Company:
21
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2.7: Tie-up with the Foreign Railways:
22
2.8: Rail Budgets & Finances:
23
2.9: Decisions Taken in Budgets:
23
2.10: Turnaround Managements in Indian Railways:
25
2.11: Schemes Introduced:
25
2.12: Further Modernization of the Traditional Way of Railways:
25
2.13: SWOT Analysis:
26
2.14: Future of the Indian Railways:
27
2.15: Advantages & Drawbacks of Indian Railways:
29
Chapter Three: -
3.1: Freight Operations & its analysis:
31 & 32
3.2: Passenger Business & its analysis:
33 & 34
3.3: Finances & its analysis:
36 & 37
3.4: A Sample Overview of the Balance Sheets & its analysis:
42 & 43
3.5: The Overall Structure of the Passenger Business & its analysis:
46 & 47
3.6: Unit Revenues & its analysis:
54 & 56
3.7: Total Incomes, Operating Margins, Profit After Taxes & Net Worth & its
analysis:
61 & 62
3.8: Consolidated Profit & Loss Accounts For 5 Years of Financial Activities
& its analysis:
64 & 66

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3.9: Statements Supplementary to the Profit and Loss Accounts:
70
&
Its Analysis:
79
3.10: Balance Sheets:
74
&
Its Analysis:
83
3.11: Sources of Funds & its analysis:
89 & 95
3.12: Application of Funds & its analysis:
91 & 95
Chapter Four: -
4.1: Findings of the Study:
97
4.2: Limitations of the Study:
97
4.3: Suggestions for Further Studies:
98
4.4: Conclusions:
98
4.5: Bibliography:
99

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Chapter: - One
-: Introduction: -
Chapter Plannings: -
 Introduction to the Indian Railways
 Why have you chosen this topic?
 Review of Literatures
 Objectives of the Study
 Methodology
1.1: Introduction to the Indian Railways: -
Transport and Communications are considered as nervous
system of the economy which helps the circulation of men and
materials. Transport may be defined as a service facility, which creates
utilities, time or place, through the physical transfer of goods and
persons from one place to another. Transport of passengers is known
as passenger transport, whereas, transport of goods or merchandises
is called as freight transport. For this reasons, Indian Railways is
considered to be the “Lifeline to the Nation.”
Service sector is one of the core sectors in the Indian
economy. Transport is one of the service sectors. Transport plays a
vital link in between the Production centres, Distribution centres and
to the ultimate Consumers’. Transport also exercises a unifying and
integrating influence on the economy.
The transport system helps to broaden the market for
goods and by doing so, it makes possible large scale production
through division of labour, social overhead capital particularly
transport occupied the prominent place in the theory of economic
development right from the time when Reseinstein–Rodan publishes
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his famous paper on “Problems of Industrialization of Eastern and
South Eastern Europe”1, Hirshman2, also emphasized and listed four
main conditions for the inclusion of an activity under the category of
social overhead activities such as carrying variety of economic
activities, provided by public or private agencies conform to some
public control, which cannot be imported and characterized by
lumpiness. An efficient transport system is a pre-requisite for
sustained economic development.
Indian Railways is one of the means of transport of bulk
goods for longer distances and commuters in India. Indian Railways
is the life line of India. Indian Railways is one of the biggest employers
by employing 13.26 lakhs of employees. Indian Railways carried 8.397
billion passengers annually or more than 23 million passengers a day.
Indian Railways is one of the World's Largest Railway networks
comprising over a route of 66,030 km and 7137 Railway stations and
the number of passenger trains runs daily are13,098 during the
year2014-15.
Indian Railways is controlled by government of India
under service sector category and it is also not exempted from the
application of financial management concept for its financial
operations. In this case study financial performance and efficiency of
Indian Railways has been analyzed.
This study is undertaken to provide a systematic analysis
of: -
 Chapter two provides an overview of the financial performance of the
Indian Railways.
 Chapter three provides an overall scenario of the Financial Performances
during the Five Financial Years {. i.e., 2012-2017}.
 Chapter four provides a complete view of the Overall Conclusion of this
study, including the findings of the study, limitations, suggestions for further
studies and so on.
1.2: Why have you chosen this topic? :-
As my father is the employee of the Indian Railways
in Accounts Department in South Eastern Railway,
Headquarter, and as I have grown my interests on the
facts of Railways and how accounting procedures are
kept and arranged in Indian Railways, in the practical
field, so I thought that this topic to be the best for my
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case study. Wherefore, when I got a chance to work on
a project as a part of our B. Com curriculum, I had
decided to study the Overall Financial Performances of
Indian Railways. This is because, I had done many
studies and gathered some knowledges about it
previously. Moreover, the reason behind choosing this
topic is that my father, being an employee of this
Government Sector, can help me providing the data
necessary to analyze financial performances and
information regarding Indian Railways.
1.3: Review of Literatures: -
 The financial turnaround .i.e., the financial
performances had been defined as the “performance
decline followed by performance improvement”
(Schendel et al. 1976; Robbins and Pearce, 1992)1.
 Brandes and Brege (1993:92)2 define it as ‘a process
that takes a company from a situation of poor
performance to a situation of good sustained
performance’. While the literature on the factors that
lead to organizational turnaround in the private
sector is well developed, the one on public sector
turnaround is of recent origin.
 Bogart and Chaudhary (2012)3 have analyzed the
trends in Indian Railways performance, the effects of
ownership and regulatory policies, and the impact of
railways on the Indian economy. Authors signified
that the dividend guarantees and government
ownership had effects on Railways performance.
There is an increasing market integration and
national income that could have used to aid Indian
economic development. He estimated the total
factor productivity for Indian Railways from 1874 to
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1912. The study denotes that the Railway industry
Total Factor Productivity (TFP) growth to
substantial, averaging 2.5 per cent per annum and
generating a three per cent social savings for the
Indian economy. The authors observed that Indian
Railways had higher TFP growth than most sectors in
India and compared favourably with TFP growth for
Railways in other countries.
 G. Raghuram and Rachna Gangwar (2008)4 had made
the attempt on Indian Railways in the past twenty
years issues, performance and challenges. Authors
say that “Nearly 70 per cent of Indian Railways
revenues come from the freight operations. Coal
alone accounts for nearly half of the bulk traffic
carried. Passenger business accounts for nearly 60
per cent of Indian Railways total transport effort, in
terms of train kilometers, but yield less than 30 per
cent of the total revenues. Suburban services
account for 57 per cent of the originating
passengers, but contribute only eight per cent for
the passenger revenue”.
 Sharma and Manimala (2008)5, analyzed the
financial turnaround in a relevant theoretical
perspective and make reasonable assessment as to
the sustainability of the turnaround of Indian
Railways. The result indicates that the Indian
Railways being in higher than initial stage of
financial turnaround, is the alignment of the
strategies with the diagnosis of sickness such as
operational inefficiency, lack of market orientation,
lack of focus on core and lack of resources for
growth.
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 Desh Gupta and Milind Sathye (2007)6, made a study
entitled “Financial Turnaround of the Indian
Railways - Good Luck or Good Management”. They
analyzed the factors that led to the turnaround of
the Indian Railways from a low performing
organization to a high performing one. The study
indicates the environmental factors (good luck)
contributed in a substantial way to the success of
Indian Railways.
 Rohit Bharill and Narayan Rangaraj (2007)7 in their
study on “Revenue management in Railway
operations: A study of the Rajdhani Express, Indian
Railways”, an attempt is made to derive elasticity
estimates between key mode choices internal to the
railways. They concluded by saying that revenue
management through differential pricing is
suggested as a means to increase revenue on
average.
 Nanjundappa (1998)8, made a study to analyze the
Indian Railways pricing and finances. The study
denotes that Indian Railways finances should get
restructured to suit the requirement of the
commercial enterprise. Taking the total financial
scenario of the country, further continuances of
indiscreet subsidies and neglecting efficiency in
financial management of Railways can lead to
further destabilizing and destroying one of the most
successful public enterprises of the government of
India.
 Manikutty (1998)9 has made the dynamic research in
the area of Indian Railways finances and assets. He
examined the revenues and expenditure of Indian
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Railways, productivity of investment of one crore in
different areas by calculating the marginal return of
investment. The study reveals that the marginal
productivity of investment is the highest for wagons.
He concluded that Indian Railways will be unable to
face the challenges in the year ahead unless some
major changes are brought in the future.
 Railway Traffic Enquire Committee (1980)10,
analyzed the financial performance of Indian
Railways over a period of 28 years from 1950-1951
to 1978-1979 and divided the period into two parts.
Up to 1965-1966, the Railways earned a surplus each
year; 1966-1967 to 1970-1971 ended up in deficits.
Further Extending analysis from 1985-1986,
respectable surpluses were achieved every year. The
Railways has also cleared the deferred dividend
payments and liquidated the indebtedness to
general revenues incurred for supplementing the
development fund. The Indian Railways is the one of
the few Railway systems earning surplus, and this
without any funding from governmental or
additional sources to pay compensation for below
cost pricing or uneconomic services.
 Kundu, (1995)11, his study denotes that “It is unlikely
that Railways would resort to any major reduction in
staff strength, given the strength of their labour
union. Railways run the risk of losing the traffic to
road transport. Bringing out all these changes would
require an innovative and enterprising management
policy”. Maintaining a high growth in traffic
revenue, generating a large part of the investible
resources internally and, thereby, saving Indian
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Railways from the debt trap, without hampering the
growth in different sectors of the economy, would
be a difficult and challenging task.
 G. Jeganthan (2002)12, in his study “Commuters of
Railways –An Attitude Study with Special Reference
to Thirunelveli-Nagercoil Section” has found that if
season ticket fares are reduced for long distance
travel, it is an added attraction to the commuters.
1.4: Objectives of the Study: -
The objectives, set forth for this Case
Study, are mentioned as under:
 To trace out the history, origin and development of
Indian Railways during pre and post-independence
period.
 To depict how the Indian Railways managing its
financial activities the best to procure long lasting
economic stability throughout the country.
 To study in detail how Indian Railways covered up its
huge losses in the present era.
 To observe the collaboration of IR with other
international rail transport systems.
 To assess the commuters and freight transporters
attitude towards the railways in selected railway
divisions and services provided to them.
 To analyze the decisions made in Rail Budget and
decisions to be taken to improve Railways in
foreseeable futures and Schemes newly Introduced
during the Railway Budgets to increase the
improvement level and customer satisfactions.
 To point out strengths, opportunities, weaknesses
and further threats of Indian Railways management
systems.
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 To plot a financial performance over 5 years of
activity and its trends.
 To study the financial performance in terms of
receipts and expenditures of Indian Railways.
 To mention the future Rail Transport Technology
that will change the shape of Rail Transport system
in India.
 To brief the advantages and drawbacks and further
challenges faced by IR.
1.5: Methodology: -
Data Sources:
Mainly based upon the “Secondary Data”. The case study is
extensively studied secondary data, collected from journals, websites,
research studies, Wikipedia, articles, etc.
Method of Analysis:
1). Case Study Analysis.
2). Data in Tabular Form (Time Series Analysis) has been represented for
financial evaluation, while the simple statistical tools {like Bar Charts,
Combo Bar Charts, Line Graphs, Combo Line Charts, etc.} have been used
to present the data.
Time Period of the Study:
The study has been done during the financial years 2012-13 to 2016-17.
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Chapter: - Two
-: Conceptual Framework
Of the
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Indian Railways: -

-: An Overview of the Indian Railways’


Transporting Systems
Throughout India: -
CHAPTER PLANNINGS: -
 Introductory Statements Regarding Indian Railways
 Indian Railways at the Time of British Raj in India
 Indian Railways – Present Days
 Organizational Structures
 Apex Management
 Services Provided by the Company
 Tie-up with the Foreign Railways
 Rail Budgets & Finances
 Decision Taken in Budgets
 Turnaround Managements in Indian Railways
 Schemes Introduced
 Further Modernization of the Traditional Way of
Railways
 SWOT Analysis
 Future of the Indian Railways
 Advantages & Drawbacks of Indian Railways

2.1: Introductory Statements Regarding Indian Railways:


Indian Railways, abbreviated as IR, is a Department of the Government of India, under the
Ministry of Railways, and is tasked with operating the rail network in India. The Ministry is headed by a
cabinet rank Railways Minister, while the Department is managed by the Railway Board. Indian Railways
is not a private corporate body; however, of late IR has adopted a corporate management style. Indian
Railways has a total state monopoly on India's rail transport. As of 2013-14, it is one of the largest and
busiest rail networks in the world, transporting 8,425 million passengers and more than 1050.18 million
tonnes of freight daily. Indian Railways is the world's ninth largest commercial or utility employer, by
number of employees, with over 1.307 million employees. It is one of the world's largest railway
networks comprising 1,15,000 km (71,000 mi) of track over a route of 65,436 km (40,660 mi) and 7,172
stations. As of 2014, IR owned a total of 2, 39,281wagons, 62,924 coaches and 9,013 locomotives. The

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trains have a 5-digit numbering system and runs 12,617 passenger trains and 7421 freight trains daily. As
of 31 March 2013, 20,884 km (12,977 mi) (31.9%) of the total 65,436 km (40,660 mi) route length was
electrified. Since 1960, almost all electrified sections on IR use 25,000 Volt AC traction through overhead
catenary delivery.
Railways were first introduced to India in 1853. By 1947, the year of India's independence, there were
forty-two rail systems. In 1951 the systems were nationalized as one unit, becoming one of the largest
networks in the world. Indian Railways operates both long distance and suburban rail systems.
2.2: Indian Railways at the Time of British Raj in India:
A plan for a rail system in India was first put forward in 1832, but no further steps were taken
for more than a decade. In 1844, the Governor General of India Lord Harding allowed private
entrepreneurs to set up a rail system in India. Two new railway companies, Great Indian Peninsular
Railway (GIPR) and East Indian Railway (EIR), were created and the East India Company was asked to
assist them. Interest from investors in the UK led to the rapid creation of a rail system over the next few
years. The first train in India became operational on 22 December 1851, and was used for the hauling of
construction material in Roorkee. A year and a half later, on 16 April 1853, the first passenger train service
was inaugurated between Bori Bunder, Bombay and Thane. Covering a distance of 34 km (21 miles), it
was hauled by three locomotives, Sahib, Sindh and Sultan. This was the formal birth of railways in India.
The British government encouraged new railway companies backed by private investors under a
scheme that would guarantee an annual return of five percent during the initial years of operation. Once
established, the company would be transferred to the government, with the original company retaining
operational control. By 1875, about £95 million were invested by British companies in Indian guaranteed
railways.
The route mileage of this network was about 14,500 km (9,000 miles) by 1880, mostly radiating
inward from the three major port cities of Bombay (Mumbai), Madras (Chennai) and Calcutta (Kolkata).
By 1895, India had started building its own locomotives, and in 1896 sent engineers and locomotives to
help build the Uganda Railway.
Extent of Great Indian Peninsular Railway network in 1870. The GIPR was one of the largest rail
companies at that time. Soon various independent kingdoms built their own rail systems and the network
spread to the regions that became the modern-day states of Assam, Rajasthan and Andhra Pradesh.
A Railway Board was constituted in 1901, but decision-making power was retained by the Viceroy,
Lord Curzon. The Railway Board operated under aegis of the Department of Commerce and Industry and
had three members: - a government railway official is serving as chairman, a railway manager from
England and an agent of one of the company railways. For the first time in its history, the Railways began
to make a tidy profit. In 1907, almost all the rail companies were taken over by the government. Indian
Railways is one of the largest employers in the world. Very few corporate entities, public or private, have
a larger workforce.
2.3: Indian Railways- Present Days:
Today, the Indian rail system uses three different gauges depending on the rail traffic and area of
the tracks. The first one is the Broad Gauge that is used in areas with high traffic and in areas with less

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traffic meter gauge is used. Mountain ranges like Nilgiri Mountain Railway and Darjeeling. Himalayan
Railway resort to narrow gauge. This rail system is further divided into seventeen zones.

These Seventeen Zones Have Been Chalked Out Below: -

Sr.No. Name of Abbreviations Headquarters No. of Divisions Route


Zones Divisions {Places} Kms.

1 Central CR Mumbai 5 Bhusawal, 3,905


Railway (CSTM) Nagpur,
Mumbai (CST),
Solapur, Pune
2 East ECR Hajipur 5 Danapur, 3,656
Central Dhanbad,
Railway Sonepur,
MughalSarai,
Samastipur
3 East ECOR Bhubaneswar 3 Khurda Road, 2,676
Coast Waltair,
Railway Sambalpur
4 Eastern ER Kolkata 4 Malda, 2,447
Railway Howrah,
Sealdah,
Asansol
5 Metro MR Kolkata 1 Kolkata 25
Railway
6 North NCR Allahabad 3 Allahabad, 3,151
Central Jhansi, Agra
Railway
7 North NER Gorakhpur 3 Lucknow, 3,767
Eastern Varanasi,
Railway Izatnagar
8 North NFR Guwahati 5 Katihar, 3,965
East Lumding,
Frontier Tinsukhia,
Railway Alipurduar,
Rangiya
9 North NWR Jaipur 4 Bikaner, 5,502
Western Jodhpur,
Railway Jaipur, Ajmer
10 Northern NR New Delhi 5 Ambala, 6,990
Railway Ferozpur,
Lucknow,
Moradabad,
New Delhi
11 South SCR Secunderabad 6 Secunderabad, 5,810
Central Hyderabad,
Railway Guntakal,
Vijayawada,
Guntur,
Nanded
12 South SECR Bilaspur 3 Nagpur, 2,455
East Bilaspur,
Central Raipur
Railway
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13 South SER Kolkata 3 Kharagpur, 2,661
Eastern Chakradharpur,
Railway Adra, Ranchi
14 South SWR Hubli 3 Bangalore, 3,191
Western Mysore, Hubli
Railway
15 Southern SR Channai 6 Chennai, 4,994
Railway Madurai,
Palghat
16 West WCR Jabalpur 3 Jabalpur, 2,965
Central Bhopal, Kota
Railway
17 Western WR Mumbai 6 Bhavnagar, 6,440
Railway (Churchgate) Mumbai
Central,
Ratlam, Rajkot,
Vadodara,
Ahmadabad
Sum 68
Total of ------------------------------------------------------------ Divisions
Divisions
Source: www.indianrailways.gov.in
Locomotives and rolling stock are two main components of the train. IR has been procuring goods
wagons from the market however coaches and locomotives both Diesel and electrical are manufactured
by IR with its production units. Later IR has taken over certain wagon manufacturing units also. At
present, following production units are taking care of needs of IR for locomotives and rolling stocks.

Sr. Name of Production Units Located at


No.
Main
Productions
1 Chittaranjan Loco Works Chittaranjan
(W.B.)
Electric Loco

2 Diesel Locomotive Works Varanasi Diesel Locos

3 Integral Coach Factory Perambur Coaches


(Compartments)
4 Rail Coach Factory Kapurthala Coaches
(Compartments)
5 Rail Wheel Factory Bengaluru Wheels & Axles

6 Diesel Loco Modernisation Patiala Diesel Loco


Components
Works
7 Rail Coach Factory Raebareli Coaches
(Compartments)
Source: www.indianrailways.gov.in
IR has been a government Department carrying out transport needs of country. So, transportation
of passengers and goods has been core activity of IR and to facilitate this core activity and to support
other supplementary activities 16 PSUs/Undertakings have been formed which are with the Ministry of
Railways and carry out different supporting activities as shown below: -

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Sr. Name of Established Main Activities
No. PSUs in year

1 RITES 1974 Technical & consultancy services.


2 IRCON 1976 Construction activities in India & abroad.
3 CRIS 1986 Consultancy & IT services to IR.
4 IRFC 1986 To raise fund from the market to part finance the
plan
Outlay.
5 CONCOR 1988 Multimodal logistic support to containerized
domestic
& Exim cargo.
6 KRCL 1990 Construct and operate Railway lines, Construct
ROB
& rail line projects.
7 RCIL (RailTel) 2000 To build nationwide OFC based broadband
telecom &
multimedia network.
8 IRCTC 2001 To undertake catering and tourism activities on
IR also
facilitate internet ticketing through web.
9 PRCL 2001 To execute SUNR-Pipavav port gauge conversion
and
new line project.
10 RVNL 2003 Cerate and augment capacity of rail
infrastructures.
11 RLDA 2005 To develop vacant railway land for commercial
use.
12 DFCCIL 2006 Plan & Construct Dedicated freight corridors.
13 MRVC 1999 To plan & implement rail projects in Mumbai.
14 BWEL 1978/2008* To manufacture wagons & structural fabrication
jobs.
15 BSCL 1976/2010* To manufacture Railway rolling stocks.
16 BCL 1976/2010* To manufacture wagons, retrofitting of EOT
cranes.
Source: www.indianrailways.gov.in
*-year of taken over by Ministry of Railways
Research and development are very important part of any organization. On
Indian Railways Research and development is carried out by Research Design
and Standards Organization (RDSO) which is located at Lucknow. RDSO is
also mandated to test and certify new technologies or innovations in train
operation.
HR development is another important aspect of the organization. On IR for development of its
manpower training institutes are provided all across the country. Zonal training centers are located in
zones for training of Group C staff. For training of officers on IR, six premier training institutes have been
established.
Sr. Name of the Institutes Located at For the officers of
No.

1 National Academy of Vadodara All Indian Railway Officers


Indian & centralized training of
Railways (NAIR) officers

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of Accounts, Personnel,
Stores
and Medical services.
2 Indian Railway Institute Pune Engineering Officers
of Civil
Engineering (IRICEN)
3 Indian Railway Institute Nasik Electrical Officers
of
Electrical Engineering
(IRIEEN)
4 Indian Railway Institute Jamalpur Mechanical Officers
of
Mechanical & Electrical
Engineering (IRIMEE)
5 Indian Railway Institute Secunderabad Signals &
of Telecommunications
Signal & officers
Telecommunication
(IRISET)
6 Indian Railway Institute Lucknow For Traffic Officers
of
Transport Management
(IRITM)
Source: www.indianrailways.gov.in
---------------------------------------------------------------------------------------

2.4: Organizational Structure:


The apex management organization is the Railway Board, also called the Ministry of Railways.
The board is headed by a Chairman who reports to the Minister of Railways. The board has five other
members in addition to the chairman. The General Managers of the zonal railways and the production
units report to the board.
Indian Railways is a department of the Government, being owned and controlled by the
Government of India, via the Ministry of Railways rather than a private company. Indian Railways is
administered by the Railway Board, which has six members and a chairman. Each of the seventeen zones
is headed by a General Manager (GM) who reports directly to the Railway Board. The zones are further
divided into divisions under the control of Divisional Railway Managers (DRM). The divisional officers of
engineering, mechanical, electrical, signal & telecommunication, accounts, personnel, operating,
commercial and safety branches report to the respective Divisional Manager and are in charge of
operation and maintenance of assets. In addition to the zones, the six production units (PUs) are each
headed by a General Manager (GM), who also reports directly to the Railway Board.
In addition to this the Central Organization for Railway Electrification (CORE), Metro Railway,
Calcutta and construction organization of N.F. Railway are also headed by a General Manager. CORE is
located at Allahabad. This organization undertakes electrification projects of Indian Railway and monitors
the progress of various electrification projects all over the country. Apart from these zones and
production units, a number of Public Sector Undertakings (PSU) is under the administrative control of the
ministry of railways. These PSU units are:

Dedicated Freight Corridor Corporation of India

P a g e 22 | 109
Indian Railways Catering and Tourism Corporation

Konkan Railway Corporation

Indian Railway Finance Corporation

Mumbai Rail Vikas Corporation

RAILTEL Corporation of India – Telecommunication Networks

RITES Ltd. – Consulting Division of Indian Railways

IRCON International Ltd. – Construction Division


Rail Vikas Nigam Limited
Container Corporation Limited
Rail Land Development Authority –for commercial development of
vacant railway land, is a statutory authority formed through an
amendment of the Railways' Act, 1989
Centre for Railway Information Systems (CRIS) is an autonomous society under Railway Board, which is
responsible for developing the major software required by Indian Railways for its operations.
2.5: Apex Management:
The Apex Managements had been Deliberated in the below Tabular Exhibit:

P a g e 23 | 109
-: Apex Management: -
Minister of Railways: Piyush Goyal
Minister of State of Railways(S): Manoj Sinha
Minister of State of Railways(G): Rajen Gohain
Members, Railway Board:
Chairman: Ashwani Lohani
Financial Commissioner: B.N. Mohapatra
Member Staffs: D.K. Gayen
Member Rolling Stock: Ravindra Gupta
Member Traffic: Mohd. Jamshed
Member Traction: Ghanshyam Singh
Member Engineering: M.K. Gupta
Secretary: Ranjanesh Sahai
Directors-Generals:
Railway Health Services: Dr. Anil Kumar
Railways Protection Force: Dharmendra Kumar
Personnel: Anand Mathur
Railways Stores: A.K. Goel
Signal & Telecom: Akhil Agrawal
General Managers, Zonal Railways:
Central: D.K. Sharma
Eastern: Harindra Rao
East Central: Rajiv Agarwal*(L/A)
East Coast: Umesh Singh
**Metro (Calcutta): Ajay Vijayvergiya
Northern: Vishwesh Chaube
North Central: M.C. Chauhan
North Eastern: Rajiv Agarwal
North-East Frontier: Chahatey Ram
North Western: T.P. Singh
Southern: R.K. Kulshreshta
South Central: V.K. Yadav
South Eastern: S.N. Agarwal
South East Central: S.S. Soin
South Western: A.K. Gupta

Western: Anil Kumar Gupta


West Central: Girish Pillai
General Managers, Production Units:

P a g e 24 | 109
Chittaranjan Locomotive Works: V.P. Pathak
Diesel Locomotive Works: Rashmi Goel
Integral Coach Factory: Sudhanshu Mani

Rail Wheel Factory: O.P. Agarwal


Rail Coach Factory, Kapurthala: Ratan Lal

Modern Coach Factory, Rae Bareli: M.C. Chauhan*(L/A)


General Managers, Construction Units:
Northeast Frontier Railway (Construction): N.K. Prasad
Central Organization for Railway Electrification: S.P. Trivedi
Director-General:
National Academy of Indian Railways: Rajeev Gupta
Director-General and Ex-Officio General Manager:
Research, Designs and Standards Organization: Margoob Hussain
Chief Administrative Officers (Railways):
Central Organization for Modernization of Workshops: Manoj Joshi
Diesel Loco Modernization Works: Ramesh Kumar
Rail Wheel Plant, Bela: R.C. Meena

*Looking After **Metro Railways,Calcutta (As On 1st January, 2018)

Source: www.indianrailways.gov.in
---------------------------------------------------------------------
2.6: Services Provided by the Company:
Passenger services:
Indian Railways operates 8,702 passenger trains and transports 17 million daily across twenty-
nine states and seven union territories.
The passenger division is the most preferred form of long-distance transport in most of the
country. A standard passenger train consists of eighteen coaches, but some popular trains can have up
to 24 coaches. Coaches are designed to accommodate anywhere from 18 to 72 passengers, but may
actually accommodate many more during the holiday seasons and on busy routes. The coaches in use are
vestibules, but some of these may be dummied on some trains for operational reasons. Freight trains use
a large variety.
Production Services:
The Indian Railways manufactures a lot of its rolling stock and heavy engineering components.
This is largely due to historical reasons. As with most developing economies, the main reason is import
substitution of expensive technology related products. This was relevant when the general state of the
national engineering industry was immature. Production Units, the manufacturing plants of the Indian

P a g e 25 | 109
Railways, are managed directly by the ministry. The General Managers of the PUs report to the Railway
Board. The Production Units are:

 Chittaranjan Locomotive Works, Chittaranjan


 Diesel Locomotive Works, Varanasi
 Diesel-Loco Modernization Works, Patiala
 Integral Coach Factory, Chennai
 Rail Coach Factory, Kapurthala
 Rail Wheel Factory, Bangalore
Suburban Rails:
Many cities have their own dedicated suburban networks to cater to commuters. Currently,
suburban networks operate in Mumbai (Bombay), Chennai (Madras), Kolkata (Calcutta), Delhi,
Hyderabad and Pune. Hyderabad and Pune do not have dedicated suburban tracks but share the tracks
with long distance trains. New Delhi, Kolkata, and Chennai have their own metro networks, namely the
New Delhi Metro, the Metro, and the Chennai MRTS- Mass Rapid Transport System, with dedicated tracks
mostly lay on a flyover as in other local EMU suburban service in Mumbai and Kolkata.
Suburban trains that handle commuter traffic are mostly electric multiple units. They usually have
nine coaches or sometimes twelve to handle rush hour traffic. One unit of an EMU train consists of one
power car and two general coaches. Thus, a nine coach EMU is made up of three units having one power
car at each end and one at the middle. The rakes in Mumbai run on direct current, while those elsewhere
use alternating current. A standard coach is designed to accommodate 96 seated passengers, but the
actual number of passengers can easily double or triple with standees during rush hour. The Kolkata
metro has the administrative status of a zonal railway, though it does not come under the seventeen
railway zones.
Freight and Goods Services:
Indian Railway carries a huge variety of goods ranging from mineral ores, fertilizers and
petrochemicals, agricultural produce, iron & steel, multimodal traffic and others. Ports and major urban
areas have their own dedicated freight lines and yards. Many important freight stops have dedicated
platforms and independent lines.
Indian Railways makes 70% of its revenues and most of its profits from the freight sector, and uses
these profits to cross-subsidize the loss-making passenger sector. Since the 1990s, Indian Railways has
switched from small consignments to larger container movement which has helped speed up its
operations. Most of its freight earnings come from such rakes carrying bulk goods such as coal, cement,
food grains and iron ore.
Indian Railways also transports vehicles over long distances. Trucks that carry goods to a particular
location are hauled back by trains saving the trucking company on unnecessary fuel expenses. Recently
Indian Railways introduced the special 'Container Rajdhani' or CONRAJ, for high priority freight.

2.7: Tie-up with the Foreign Railways:


Indian Railways is in constant touch with Railways across the world to bring in state-of-art facilities
in its system. Towards this, a Memorandum of Understanding was signed during the Eighth Session of

P a g e 26 | 109
the Indo-Austria Joint Economic Commission held in Vienna. This seeks to promote and deepen long-term
infrastructure-specific cooperation between Indian and Austrian Railways to their mutual benefit.
A three-day International Conference of Union of Railways was organized by Indian Railways in New Delhi
in which hundreds of delegates from various industries and Railways around the world participated.
2.8: Rail Budgets & Finances:
The Railway Budget deals with the induction and improvement of existing trains and routes,
the modernization and most importantly the tariff for freight and passenger travel. The Parliament
discusses the policies and allocations proposed in the budget. The budget needs to be passed by a simple
majority in the Lok Sabha (India's Lower House). The comments of the Rajya Sabha (Upper House) are
not binding. Indian Railways are subject to the same audit control as other government revenue and
expenditures. Based on the anticipated traffic and the projected tariff, the level of resources required for
railway's capital and revenue expenditure is worked out.
While the revenue expenditure is met entirely by railways itself, the shortfall in the capital
(plan) expenditure is met partly from borrowings (raised by Indian Railway Finance Corporation) and the
rest from budgetary support from the Central Government. Indian Railways pays off dividend to the
Central Government for the capital invested by the Central Government.
Albeit, the Railway Budget is separately presented to the Parliament, the figures relating to
the receipt and expenditure of the Railways are also shown in the General Budget, since they are a part
and parcel of the total receipts and expenditure of the Government of India. This document serves as a
balance sheet of operations of the Railways during the previous year and lists out plans for expansion for
the current year.
The formation of policy and overall control of the railways is vested in Railway Board
comprising the Chairman, Financial Commissioner and other functional Members for Traffic, Engineering,
Mechanical, Electrical and Staff matters. As per the 2006 budget, Indian Railways earned Rs. 54,600 cr.
Freight earnings increased by 10% from Rs. 30,450 cr. in the previous year. Passenger earnings, other
coaching earnings and sundry other earnings increased by 7%, 19% and 56% respectively over previous
year. Its year end fund balance is expected to stand at Rs. 11,280 cr.
Around 20% of the passenger revenue is earned from the upper-class segments of the
passenger segment (the air-conditioned classes). The overall passenger traffic grew 7.5% in the previous
year. In the first two months of India's fiscal year 2005–06 (April and May), the Railways registered a 10%

growth in passenger traffic, and a 12% in passenger earnings. Since 21 September,2016,


Modi Government, approved the merger of Rail and General
Budgets from the next year (. i.e., In 2017). As this
amalgamation took place, there is no question for dividend
payments by Railways. It ended up the 92-year-old practice
of submitting separated Rail Budgets.
2.9: Decisions Taken in Budgets:
1). Using the freight strategy:
P a g e 27 | 109
The Railways had succeeded in increasing profits in the freight segment by adopting the
―”Increase volumes- reduce unit costs strategy”. It was decided to adopt the same strategy in the
passenger business too, and work towards cutting losses. It was decided to cut down losses in the
coaching services by about Rs. 1000 corer in the coming year and by 50% in the next three years by
increasing the number of coaches and occupancy of trains, reducing travel time and reducing losses in
the catering and parcel segments.

2). Safety Initiatives:


The Indian Railways was trying its best to reduce the number of accidents by strengthening
its infrastructure. This has resulted in consequential train accidents to come down to 325 in 2003-04 from
473 in 2000-01. Also 1280 unmanned level crossings are planned to be manned over a period of time.
The projects and the plans carried out by the Railways have reduced accident rates even
further. With the completion of safety works there has been a remarkable reduction in railway accidents
and the number of consequential trains’ accidents has come down from 473 in 2001 to 234.

3). Security:
The Railway Protection Force (RPF) was deploying escort parties for about 1000-passenger
trains every day. Access control and security at about 600 stations was being provided through the RPF.
In order to provide security to women passengers, the Railways are providing special squads in
compartments reserved for women in the suburban rail area also special arrangements are being made
for the security of women. In view of the important role of the RPF in the security of passengers, the
modernization of this force was being given special attention. On Republic Day, His Excellency, the
President of India, honored 7 RPF employees for exceptional work with bravery medals.

4). Cleaner Trains:


To improve cleanliness at stations and in trains, General Managers of all the zonal railways
have been directed to take special steps. A nationwide cleanliness drive has also been launched. In order
to infuse a spirit of excellence, it has been decided to hold inter-divisional competition in which the
Headquarters’ Committees comprising of senior officers of concerned departments will evaluate all the
railway divisions. The best divisions will be given the Cleanliness Efficiency Shield. Best stations will also
be selected and awarded. Where the cleanliness level was found to be unsatisfactory, responsibility will
be fixed on the concerned officers and employees. A nationwide cleanliness drive has been launched -
spirit of competition infused. Disposable "kulhars" will be made available, use of plastic cups to be
discouraged. Development of an environment friendly coach toilet discharge system taken up.
Upholstery/linen used on Railways will henceforth be of handloom/khadi variety.

5) Book stalls:
As per new bookstall policy, allotment at 'B', 'C'& 'D' class stations open only to unemployed
graduates and their associations; 25% reservation to under privileged section. At 'A' class stations, a two-
packet tender system introduced.

6). Other Decisions Made in Budget:


 No change in rates

P a g e 28 | 109
 Enhancing the quality of freight trains
 Double stack container freight trains
 Improvement in wagon turns around time
 Increase in wagon production & locomotive production
 To increase the Container Traffic for meeting up the growing demands for Container
Trains
 Fixation of the minimum chargeable weight of the wagons
2.10: Turnaround Managements in Indian Railways:
Indian railways were running in losses since years. It had been taken as granted that this
Public Sector Unit can never be a profit-making undertaking for Indian government. Until the second half
of the 1990s, it had been generating a net surplus. Thereafter, it started posting increasing losses. But
Lalu Prasad Yadav proved this wrong. He presented figures where Indian Railways made profit for year
2004-05. The Indian Railways, an industry that was heading towards bankruptcy three years ago when
Railway Minister Lalu Prasad took over, now has an all-time high cash surplus of Rs. 13,600 crores, beating
even their own budget estimates.
Unlike previous ministers, Mr. Yadav has looked upon Railways as a commercial enterprise
and not a social welfare institution. He is a hard taskmaster and ensures his subordinates carry out the
projects.
2.11: Schemes Introduced:
Indian Railways decided to take some schemes to smoothen the avenue of betterments and
maximum possible customer satisfaction during the Railway Budget. These schemes have been
deliberated below:

 Engine-on-Load (EOL) Schemes


 Terminal Incentive Schemes
 Electronic Payment Gateway Schemes (EPG)
 Wagon Investment Scheme (WIS)
 Non-peak season incremental freight discount schemes
 Empty flow Direction Freight Discount Schemes
 Loyalty Discount Schemes
 Long-term freight discount scheme
 Terminal Incentive Engine-on-load Scheme
 Mini Rake and 2-point rake scheme
 Freight Forwarder Scheme
2.12: Further Modernization of the Traditional Way of Railways:
I. I-tickets and E-tickets to shrink the queues at the booking counters.
II. Introduction of the Computerized Train Enquiry Systems to assist
passengers regarding the Arrivals and Departures of the trains.
III. Initiation of the Round the Clock Internet Booking to impart internet
ticket booking facilities for the Cell-Phones (but soon will be available to
Land Lines too).
IV. Display of the Reservation Status in Advance for the Waitlisted
Passengers.

P a g e 29 | 109
V. Display of the Vacant Berth Positions to the Waitlisted passengers to
enable the transparency of the journey.
and link up the information to the Current Booking Counters.
VI. Introduction of the Computer Based Unreserved Ticketing.
VII. Mumbai Suburban Passengers’ Season Tickets renewal on the
Internet and home-delivery of the tickets on the lines of the Internet
ticketing for Renewal Categories.

2.13: SWOT Analysis:


Strengths:
o The Indian Railways is considered as the “Biggest Company” in the world in terms
of employee strength.
o The train “Palace on Wheels” is a major part of income to the Indian Railways.
o The network of railways is very huge. i.e., There are many trains which connects
different cities and countries like, Pakistan and Bangladesh.
o The trains are luxurious and affordable to common man.
o The management of railways is very good. This can be told because on the very
next day of the “Mumbai Bomb Blast” the trains were running at their scheduled
time.
Weaknesses:
o The major weakness of the Indian Railways is the corruption within the
department, which restricts the growth of it.
o Accidents take place because of the lack of accident proof magnetic wheels in all
trains.
o Lack of safety i.e. in terms of robbery, woman safety.
o Poor infrastructure.
o Delayed trains.
o Typical government employees. i.e. The lazy employees.
 Opportunities:
o The long-term plan of the “METRO” in a commercial city like Mumbai is the
greatest opportunity.
o Developing the network of railways and providing people with more luxurious and
comfortable trains for long distances.
o Development of railways even in small cities.
o Can be partially privatized and the government can make more profit through this
privatization.
o Tie-Up with Foreign Railways.
 Threats:
o The low-cost airlines seem to be a major threat to the Indian Railways and vice
versa.
o Increasing costs.
o Improvement of other infrastructure like roadways has led to division of freight
between various sectors.
o Could be taken over by the airlines because they are safer to travel.

P a g e 30 | 109
2.14: Future of the Indian Railways:
The main thrust areas for Railway Budget 2006-07 were capacity augmentation, enhancing
revenues through significant growth in volumes by adopting various aggressive marketing
initiatives in freight and coaching business, technological up gradation, cutting down losses and
route wise focused investment strategy. So, to achieve these goals, railways have initiated several
measures including adoption of suitable technology for interlocking and signaling system, up
gradation standards of track and rolling stock, modernization of maintenance practices,
replacement of over- aged assets, provision of Anti-Collision Devices and up gradation of training
aide like simulators. Following are some of their plans which are implemented and on which they
are working upon:
1). Rolling out low-cost AC trains.
2). Train tickets on ATMs and Call Centers to give information on arrival and departure of trains,
availability of seats, fare-facilities at many busy railway stations and for registration of complaints.
3). Railways play the loyalty card to give the passengers a 4 to 10 per cent discount on AC two tier
and AC First-class fares to hold back the passenger numbers same as before the dynamic Airline Fares
introduced.
4). Railways to launch SMS-based ticket booking services buoying by the response to its earlier
service of ticket bookings through the Internet, Indian Railway Catering and Tourism Corporation
(IRCTC) - which manages Railways' Internet booking service platforms. one can also book tickets using
voice-based services through the cell phone- that is the user is required to speak in order to book a
ticket.
5). Booking a trip aboard luxury train Deccan Odyssey will now be possible online. The Maharashtra
Tourism Development Corporation (MTDC) plans to launch an Internet booking facility for the train
soon. The corporation also plans to appoint public relations agencies abroad to popularize the train.
6). Surfing the Internet, making basic phone calls and watching cable TV on moving trains will soon
be a reality. RailTel, the broadband subsidiary of the Indian Railways, will set up kiosks along with
private entrepreneurs at different stations.
7). Railways to mull bonus points for frequent travelers to ward off increasing competition from
Airways.
8). Reliance Infocom, in association with Indian Railway Catering and Tourism Corporation Ltd.
(IRCTC), has launched Railway Ticket Booking service through Reliance India Mobile (RIM) in 120 cities
across all 28 states and union territories of India.
9). A luxury tourist train, 'Palace on Wheels', on the lines of the one in Rajasthan, had been
proposed in Karnataka, the Minister for Tourism, informed the Legislative Council recently.
10). In its international reach, Indian Railway's public sector undertaking RITES and IRCON
International Ltd are exploring overseas markets for exporting more locomotives. RITES have
supplied five locomotives to Vietnam and three to Bangladesh and four locomotives to Sudan. IRCON

P a g e 31 | 109
International Ltd has temporarily exported meter gauge locomotives to Malaysia on lease-cum-
maintenance basis during the last three years. Of late, IRCON has 25 locomotives working in Malaysia.
11). Commercialization of the Lands: So far, 61 major sites involving an area of 180 hectares
of the Railway land having commercial potential are identified, out of these nine sites with the value
of Rs. 21 crores (Rs. 210 million) have been finalized for commercial purpose. Railways are also
planning to set up an exclusive coal freight-corridor to meet the projected demand from the sector.
The plan, still at the conceptual stage will be in addition to the already approved Rs.60, 000 crores (Rs
600 billion) rail freight corridors aimed at boosting railway earnings.
12). Up-gradation Programmes: In another major initiative to mop up resources, the Railway
Minister had announced that any holder of a wait-listed ticket could be allotted accommodation in a
higher class if seats remain vacant in the next higher class.
A sleeper class wait-listed passenger could get a confirmation in 3rd AC or a 3rd AC wait-listed
passenger could get a confirmation in 2nd AC and so on and need not to pay any extra money for it.
13). The Railways are planning for significant expansion in rail capacity network, which would
include two dedicated freight corridors from JNPT to Tughlaqabad and Ludhiana to Somnagar with
further extension to Kolkata in due course.
14). Discounts on freight of Empty Flow Directions: In the area of freight traffic, it is
proposed to have a dynamic pricing policy, heavy discount on incremental freight in empty flow
direction, loyalty discount scheme and long-term freight discount scheme etc.
15). New Tatkal Schemes: Tickets can now be booked three days in advance; unlike the 24-
hour before and passengers don't have to travel with ID cards. Opening up a new window, for
passenger convenience, the Indian Railways is tying up with the Department of Posts to offer tickets
for suburban as well as long distance travel through post offices. While the Railways will reduce
pressure on its booking counters, the postal department would get a new stream of income through
ticket sales.
16). Infrastructural changes in major railway stations with all the amenities like a cyber cafe, a mall,
and all the possible things customers would want. In this section we can include that there is a plan to
set up Google Wi-Fi in almost all the stations.
17). Progressive work on the “Dedicated Freight Corridor” to connect the metropolitan cities after
winding its way through important mineral belts and touching major ports. For this, the Railways
desperately need new lines, especially on the busy Golden Quadrilateral route. The proposed new
freight corridor will be for freight trains only, so the average speed is expected to raise several folds
from the current 25 km per hour — Railways officials say the objective is to match the 150 km per hour
that goods trains in China do.
18). Other Incomplete Future Projects: Projects that are proposed by the Indian
Rail as the “Future of the Rail Transport in India” are pointed out below:

Hyperloop Trains
P a g e 32 | 109
Semi-High-Speed Bullet Trains Using Japanese Shinkansen Systems and
Locomotives
Further Proposal for Establishment of Maglev Trains
Bio-toilets in Almost All Trains - March 2019 Target
All Track Electrification – March 2021 Target and so on.
2.15: Advantages & Drawbacks of Indian Railways:
Advantages:
 Railways provide the cheapest and most
convenient mode of passenger transport both for
long distance and suburban traffic.
 Railways have played a significant role in
development and growth of industries. Growth of
textile industry in Mumbai, jute industry in areas
surrounding Kolkata, coal industry in Jharkhand,
etc. is largely due to the development of railway
network in these areas. Railways help in supplying
raw materials and other facilities to the factory sites
and finished goods to the market.
 Agriculture also owes its growth to railways to a
great extent. Now farmers can sell their agricultural
produce to distant places and even sell them out in
the world market at remunerative prices.
 Railways are also helpful in removing isolation
between cities and countryside and have played a
significant role in disseminating innovations and
new ideas.
 Railways play a vital role in mitigating the
sufferings of the people in the event of natural
calamities like droughts, floods, famines,
earthquakes, etc. This is done by carrying relief and
rescue teams and essential items to the affected
areas and save people from sufferings and
starvation.

P a g e 33 | 109
 Railways also help in facing man-made calamities
like social, political, religious disturbances,
insurgency, etc. It facilitates easy movement of
police, troops, defence equipment, etc. The
importance of railways to save the country’s
freedom and integrity from external aggression has
been proved at several occasions.
 Introduction of superfast trains and container
services in major cities of India have ensured quick
movement of men and material.
 The connectivity of Railways to various tourist
spots gives encouragement to tourism. Railways
sell circular tickets to the tourists to -remote
tourism.
 Railways are particularly suited to long distance
journey and provide a strong medium of national
integration.
Drawbacks:
 Its present railway network is overburdened and
inadequate to meet the new challenges of a fast-
developing economy.
 Some regions are beyond the reach of railways
due to unfavourable geographical conditions.
These areas need to be opened to railways for
removing regional inequalities in economic
growth.
 Railways are facing stiff competition from road
transport and thus its share in passenger and goods
traffic is declining.
 Railways are overburdened with surplus staff on
its regular pay roles. This burden hinders the
further development of railways.
P a g e 34 | 109
 The railways have to develop uneconomic projects
due to political pressures and interferences.
 As railways require huge capital outlay, they may
give rise to monopolies and work against public
interest at large. Even if controlled and managed by
the government, lack of competition may breed
inefficiency and high costs.
 Railway Engines, wagons and other equipment’s
are quite old and these require replacement. It is a
huge expenditure.
 In India, large number of passengers travel
without tickets. Indian railways have to bear extra
loss of about 5 crore every year on account of
travelling without tickets.
 Railways do not provide door to door service like
road transport, since it is tied to the particular
track(s). Intermediate loading or unloading
involves greater cost, more wear and tear and
wastage of time. The time and cost of terminal
operations are a great disadvantage of rail
transport.
 It involves much time and labour in booking and
taking delivery of goods through railways as
compared to motor transport.
 The railway must have full load for its ideal and
economic operation. As it has a very large carrying
capacity, under-utilization of its capacity, in most
of the regions, is a great financial problem and loss
to the economy.
 There is mounting deficit due to non-increase in
fares and tariffs by the Government due to political
reasons.
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-----------------------------------------------
Chapter: - Three
-: The Financial Performances of
The
Indian Railways: -
-:5 Years’ Financial Performances of Indian Railways: -
CHAPTER PLANNINGS: -

 Freight Operations
 Passenger Business
 Finances
 A Sample Overview of the Balance Sheets
 The Overall Structure of the Passenger Business
 Unit Revenues
 Total Incomes, Operating Margins, Profit After Taxes
& Net Worth
 Consolidated Profit & Loss Accounts For 5 Years of
Financial Activities:
 Statements Supplementary to the Profit and Loss
Accounts
 Balance Sheets
 Sources of Funds
 Application of Funds

3.1: Freight Operations: -


Years 2012-13 2013-14 2014-15 2015-16 2016-17

Particulars

P a g e 36 | 109
Revenue 1,008.09 1,051.64 1,095.26 1,101.51 1,106.15
Originating
Tonnes
(million)*
Revenue Net 6,49.645 6,65.810 6,81.696 6,54.481 620.175
Tonne
Kms.
(million/billion)
Goods Earnings 83,478.83 91,570.85 1,03,100.15 1,06,940.55 1,02,027.82
@ (₹` in crore)

*excluding Konkan Railway


@Excludes ‘other goods earnings’ such as wharf age, demurrage, etc.

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

REVIEW-PROSPECTS: -
Financial Performance: -
Plot: - 3.1:
Freight Operations:
The Underlying Graph Chart Denoting the Uprising and Downfalling of Revenue Net Tonnes
{Kilometre in Billions}: -

Revenue Net Tonne


Kms. (billion)
Revenue Net Tonne
Kms. (billion)

681.696
665.810 654.481
649.645
620.175

2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Revenue Net Tonnes {In Kilometre Billions}: -

From the above-mentioned Graphical representation, we observe that, in 2012-13 the


amount of Revenue Net Tonnes was 649.645 billion and in 2013-14 the amount of
Revenue Net Tonnes augmented to 665.810 billion, registering a growth percentage of

P a g e 37 | 109
2.49%. Further increase had taken place during 2014-15 with an amount of 681.696
billion, showing a healthy condition of activity. But from the year 2015-16 it started to
have a steep downfall, by dint of some poor workman activity and lack of proper
surveillance. In 2015-16, the decrease was clocked 654.481 billion. In the financial year
of 2016-17 another sharp fall took place, which was amounting to 620.175 billion,
owing to increasing competition. It shows an adverse result against the smooth
business of Railways.

The Underlying Graph Describing the Position of The Goods Earnings (₹ in Crores): -

G O O D S E A R N I N GS
( ₹ I N C R O R E)

150000.000

100000.000 106940.550
91570.850
50000.000 83478.830 102027.82
103100.150 0
0.000
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Goods Earnings (₹ In Crores): -

The Cylindrical Graph indicates that, in year of 2012-13, the amount of Goods Earnings was
₹ 83,478.83, in the next year.i.e., in the year of 2013-14 it showed a small increase of ₹ 91,570.85.
It Indicates initial point of gradual improvement due to use of new technologies and working
labours in loading goods. In the year of 2014-15 we can observe that an increase of ₹1,03,100.15
has encouraged the freight activity. The level of increase in goods earnings had been lifted up to
the maximum point of ₹ 1,06,940.55, in 2015-16. But due to usage of traditional technology and
improper infrastructures in this field, it had started to decrease slowly. The level, in 2016-17,
decreased to the tune of ₹ 1,02,027.82, which shows an unhealthy situation.
-----------------------------------------------------------

3.2: Passenger Business: -

P a g e 38 | 109
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)
Particulars
Number of 8,421 8,397 8,224 8,107 8,116
Passengers
carried (million)
Passenger Earnings 31,322.84 36,532.25 42,189.61 44,283.26 46,280.46
(₹`in crore)

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

Plot: - 3.2:
Passenger Business: -
The Below Mentioned Bar Chart Depicting the profile of The Number of
Passengers Carried (In Million Nos.): -

Number of
Passengers
Carried (million nos.)

2016-17 46280.46

2015-16 44283.26

2014-15 42189.61

2013-14 36532.25

2012-13 31322.84

0.00 10000.00 20000.00 30000.00 40000.00 50000.00

 Overview of Number of Passenger Carried Over the Years:

Over the years we find the trend of number of passengers are decreasing by
leaps and bounds because of subsistence other systems of transports. Albeit,
we observe that from 2016-17 it started to increase again. By dint of new
transport network, the number of passengers in 2012-13 was 8421, in the
year of 2013-14 was 8397, in 2014-15 it was 8224. In 2014-15 it was
decreased to extreme extent. In the year of 2015-16 it was further decreased
to 8107. But from 2016-17, it had started to catch the same momentum as
before. It shows the positive sign in this field of activity. Despite concerns
over the railways losing out on passengers owing to the dynamic pricing of
airlines and also due to the flexi-fare systems introduced in Premium Trains.
However, that has not impacted the transporters much.
P a g e 39 | 109
The Overall Trend of Passenger Earnings {In ₹ Crores} Throughout
5 years::

Passenger Earnings
(₹ in crore)

60010.00

40010.00 31322.84
44283.26
36532.25
20010.00 46280.46
42189.61
10.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of Passenger Earnings {In ₹ Crores}:

During the 5 years we observe a smooth increase in Passenger Earnings owing to


the new scheme launched. In the year of 2012-13, it showed a primary level of
increase of ₹ 31,322.84. In 2013-14, it had showed an increase amounting to ₹
36,532.25 (as compared to the previous year). In the years of 2014-15 and 2015-16
there were an upward trend in passenger earnings having amounts of ₹ 42,189.61
and ₹ 44,283.26 respectively. In 2016-17 it had been risen up to a great extent
compared to the past years at an amount of ₹ 46,280.46. it shows spurt in passenger
earnings during the years.

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

P a g e 40 | 109
The Following table is plotted to represent the items as regards the “Finance” Of
Indian Railways:
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars
Gross 1,23,732.59 1,39,558.18 1,56,710.54 1,64,333.51 1,65,292.20

Traffic
Receipts
Total 1,11,572.04 1,30,320.76 1,42,995.88 1,47,835.93 1,59,029.61

Working
Expense
s
Net 12,160.55 9,237.42 13,714.66 16,497.58 6,262.59

Traffic
Receipts
Miscellan 1,454.64 2,511.65 3,123.83 2,730.90 (-)1,349.59

eous
Transact
ions
(Net)
Net 13,615.19 11,749.07 16,838.49 19,228.48 4,913.00

Revenue
Receipts
Dividend 5,348.94 8,008.67 9,173.55 8,722.51 -Nil-

s
payable
to

P a g e 41 | 109
General
Revenue

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

The Overall Scenario of The Gross Traffic Receipts and Total Working
Expenses:

Gross Traffic Receipts And Total Working Expenses (₹ In Crores)


200000.00 200000.00
159029.61
150000.00 130320.76 142995.88 147835.93 150000.00
111572.04
100000.00 156710.54 165292.20 100000.00
123732.59
50000.00 164333.51 50000.00
139558.18
0.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Gross Traffic Receipts Total Working


Expenses

 Analysis of the Gross Traffic Receipts and Total Working Expenses: -

Over the years of activity, a gradual small increase in Gross Traffic Receipts and
Total Working Expenses had been observed due to the improved technologies and
high efficiency of workmen.
Gross Traffic Receipts: In the year of 2012-13 the receipts payment was
₹1,23,732.59. In the years of 2013-14 and 2014-15 the increase levels in Gross
Traffic Receipts were ₹1,39,558.18 and ₹1,56,710.54. In the year of 2015-16 it
shows a slight increase (as compared to the previous years) and it amounted to
the ₹1,64,333.51. In the year of 2016-17 it showed a high increase level
amounting to ₹1,65,292.20. It Shows a healthy financial position in this field.

Total Working Expenditures: Above graphical representation elucidates that,


throughout the years Total Working Expenditures grown up with small chunk of
money due to the good infrastructures and other improvements. This is
expenditure incurred for proper maintaining railway assets and real estates and
other properties. In 2012-13, the primary level of this expense (as we had
considered 2012-13 as base) was ₹ 1,11,572.04. In 2013-14, it has been observed
P a g e 42 | 109
that a small amount of increase of ₹1,30,320.76 took place. In the years of 2014-
15 and 2015-16, the expenditures incurred showed a comparatively high increase
of ₹1,42,995.88 and ₹ 1,47,835.93 respectively. But in the year of 2016-17, the
expenditure reached up to ₹ 1,59,029.61, which is not as expected for proper
maintaining of huge properties of railways.

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

Graphical Representation of the Net traffic receipts over


the years:

Net Traffic Receipts (₹ In Crores)


20000.00

15000.00

10000.00
16497.58
12160.55 13714.66
5000.00 9237.42
6262.59
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Net Traffic Receipts:


From the above bar diagram of the Net Traffic Receipts, we can see that, level
of Receipts fluctuated frequently. In the year of 2012-13, it was stood at ₹12,160.55.
But in the next year (. i.e., 2013-14) the amount fell down sharply to ₹ 9,237.42 owing
to some other factors relating to railways business. But it initiated rising upward
from 2014-15 with a great increase amounting to ₹ 13,714.66. It increased further to
a great extent to ₹16,497.58 in the year of 2015-16. But it suddenly fell down more
sharply to ₹6,262.59. It is Showing a negative sign which should attract the
attention of railway authority.
------------------------------------

Representational Line Chart Showing the Profile of Miscellaneous


Transactions: -

P a g e 43 | 109
Miscellaneous
Transactions (Net) (₹ In Crores)
4000.00 3123.83
2511.65 2730.90

2000.00 1454.64

0.00 -1349.59
2012-13 2013-14 2014-15 2015-16 2016-17
-2000.00

 Analysis of the Miscellaneous Transactions: -

Over the years we have seen that, in the year of 2014-15, the Miscellaneous
Transactions reached the maximum level. It may be considered as the Break
Even Point of the graph. After this level it fell down to a great extent and
showed a loss therefrom. In the year of 2012-13, it reached ₹1,454.64, and it
had been lifted up to ₹2,511.65 in the year of 2013-14. It had got increased to
a maximum level amounting to ₹ 3,123.83 in 2014-15. But then it had lost its
momentum and started to go down to ₹2,730.90 in the year of 2015-16 and ₹ -
1,349.59 in 2016-17. In the year of 2016-17, this activity is showing an
adverse result, due to improper utilisation of some factors relating to this
activity, causing an unhealthy impact upon the business. Railway authority
should chalk up some new policies as regards this activity.
--------------------------------------------------

Net Revenue Receipts


The Following Graph Showing the Uprising and Downfall Situation of
Net Revenue Receipts: -

Net Revenue
Receipts (₹ In Crores)

20000.00
15000.00 16838.49
10000.00 13615.19
19228.48
5000.00 11749.07
4913.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

P a g e 44 | 109
o Analysis of the Net Revenue Receipts For 5 Years {In ₹}: -

There are frequent fluctuations in the level of Net Revenue Receipts


throughout the financial years. It showed a stable condition during the
first four years of this activity. We can observe that during the year of
2012-13 the level was at ₹ 13,615.19. In the year of 2013-14, it had been
decreased to the tune of ₹ 11,749.07. But in the years of 2014-15 and 2015-
16, it started to increase fairly with the amounts of ₹16,838.49 and
₹19,228.48. But in the year of 2016-17, it showed a sharp decrease
amounting to ₹4,913.00. It is showing a negative sign in the business
owing to the steep fall in miscellaneous expenses (as compared to the
other factors). Authority should perform well to upheave the business
from this situation.
--------------------------------------------------

Dividends Payable to The General Revenue: -

Over the Years the Amounts of the Dividends Payable to the


General Revenue
Has Been Graphically Mentioned Below: -

Dividend payable to
General Revenue (₹ In Crores)

2012-13 5348.94
2013-14 8008.67
2014-15 9173.55
2015-16 8722.51
2016-17

0.00 2000.00 4000.00 6000.00 8000.00 10000.00

 Analysis of the dividends payable to the


general revenue {₹ In Crores}: -

Dividends Payable to the General Revenue had fluctuated throughout the


years. But in the year of 2016-17, there was no dividend paid off to the
general revenue. At the primary level (. i.e., In 2012-13), dividends
amounting to ₹5,348.94 paid off to the general revenue. In the year of
P a g e 45 | 109
2013-14, it was increased up to ₹8,008.67. In the year of 2014-15, it had
further increased to ₹9,173.55 compared to 2013-14. But in the year of
2015-16, it was decreased slightly up to ₹8,722.51. It showed an adverse
report in this respect to the business activity. Proper attention of
authority is required.

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

P a g e 46 | 109
3.4: A Sample Overview of the Balance Sheets: -
Years
As On 31st As On 31st As On As On As On
March March 31stMarch 31stMarch 31stMarch
2013 2014 2015 2016 2017
(₹) (₹) (₹) (₹) (₹)

Detail Detail
Particu Detail Amou Detail Amou Detail Amou s Amou s Amou
lars s nts s nts s nts nts nts
ASSET
S: -
Block
2,89,3 3,24,6 3,68,7 4,19,1 4,71,7
Assets: -- -- -- -- --
74.87 62.40 58.21 23.61 76.39
-
Funds
with
Central
Govern
ment:
(i) 6,872.
Reserv 4,073. 6,025. 74 10,80 2,577.
-- -- -- -- --
e funds 41 26 6.92 04
@
(ii)
Bankin
35,31 40,56 47,46 53,14 58,78
g -- -- -- -- --
6.59 2.10 2.72 5.46 4.12
accoun
ts
Sub-
39,39 46,58 54,33 63,95 61,36
Total -- -- -- -- --
0.00 7.36 5.46 2.38 1.16
s:
Sundry --
3,266. 3,507. 4,022. 3,507. 3,856.
Debtor -- -- -- --
26 49 50 18 37
s, etc.
Cash --
and
Cash 1,327. 1,273. 1,930. 1,082. 675.9
-- -- -- --
Equival 78 37 41 83 6
ents
(Cash)
Total 3,33,3 3,76,0 4,29,0 4,87,6 5,37,6
-- -- -- -- --
LIABI 58.91 30.62 46.58 66.00 69.88

P a g e 47 | 109
LITES:
-
Repres
ented
by: -
Capital
1,53,5 1,79,6 2,08,7 2,42,4 2,75,5
-at- -- -- -- -- --
21.36 81.40 99.27 73.64 84.46
charge
Invest
ment
finance
d from 1,35,8 1,44,9 1,59,9 1,76,6 1,96,1
-- -- -- -- --
interna 53.51 81.00 58.94 49.97 91.93
l
source
s, etc.
Sub- -- 2,89,3 -- 3,24,6 -- 3,68,7 -- 4,19,1 -- 4,71,7
Total 74.87 62.40 58.21 23.61 76.39
s:
Reserv -- -- -- -- --
e 4,073. 6,025. 6,872. 10,80 2,577.
Funds 41 26 74 6.92 04
Bankin -- -- -- -- -- -- -- -- -- --
g
Accoun
ts: -
(i) -- -- 29,85 -- -- --
Provid 26,43 28,10 5.44 31,41 35,00
ent 3.98 8.84 4.09 3.54
Funds
(ii) -- -- 17,46 -- -- --
Misc. 8,671. 12,27 1.84 21622 23,69
Deposi 72 8.52 .96 9.98
ts
(iii) F. -- -- -- -- --
Loans 210.8 174.7 145.4 108.4 80.60
and 9 4 4 1
Advanc
es
Sub- -- -- -- -- --
Total 35,31 40,56 47,46 53,14 58,78
s: 6.59 2.10 2.72 5.46 4.12
Sundry -- -- -- -- --
Credito 4,594. 4,780. 5,952. 4,590. 4,532.
rs, etc. 04 86 91 01 33
Totals -- 3,33,3 -- 3,76,0 -- 4,29,0 -- 4,87,6 -- 5,37,6
:- 58.91 30.62 46.58 66.00 69.88
-------------------------------------------------------

Plot:- 3.4:
-: A Sample Graph Representing the Amounts of
Block Assets, Sundry Debtors & Sundry Creditors
P a g e 48 | 109
Throughout the Years: -
Over the financial years, the amounts of Block Assets, Sundry
Debtors and Sundry Creditors Were as Follows: -

Block Assets & Sundry Debtors:

Block Assets & Sundry Debtors


500000.00 5000.00
400000.00 4022.50 3856.37 4000.00
3266.26 3507.49 3507.18
300000.00 3000.00
471776.39
200000.00 2000.00
324662.40
100000.00 289374.87 368758.21 419123.61 1000.00
0.00 0.00
As on 31st As on 31 st As on 31st As on 31st As on 31st
Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017

Block Assets Sundry


Debtors

Analysis of the Trends of the Block Assets & Sundry Debtors: -


 Block Assets: During the financial years, we have observed a smooth increase
in the value of Block Assets. In the years ending on 31 st
March,2013 and 31 March,2014, it showed a small-scale
st

increase of ₹2,89,374.87 and ₹3,24,662.40 respectively. In the


year ending on 31st March,2015, the value of Block Assets was
at ₹3,68,758.21 whereas in the years ending on 31st March,2016
and 31st March,2017, the level of the value of Block Assets was
much higher compared to the past years and the values were
₹4,19,123.61 and ₹4,71,776.39 respectively. It showed a healthy
situation of the business.
Sundry Debtors: A vagary has been found in the levels of the Sundry Debtors
During the 5 years. In the years ending on 31st March,2013 and
31st March,2014, it showed a very slight increase in the Sundry
Debtors has been seen which amounted to ₹3,266.26 and
₹3507.49 respectively. In the year ending on 31st March,2015, it
was found to be the much higher increase than the other
financial years (as demonstrated in the graph) having an amount
of ₹4022.50, which is considered maximum in this case. But in
the next year ending on 31st March,2016, it was found a steep
fall of ₹3,507.18 took place, showing an adverse effect in this
activity. In the year ending on 31st March,2017, it slightly
increased to ₹3,856.37. It showed a healthy condition in the
business’s operational activity.
------------------------------
P a g e 49 | 109
Sundry Creditors:

Sundry
Creditors
6000.00 5952.91
4000.00 4594.04 4532.33
2000.00 4780.86 4590.01
0.00
As on As on 31 As on As on As on
31st Mar. st Mar. 31st Mar. 31st Mar.31st Mar.
2013 2014 2015 2016 2017

Analysis of the Sundry Creditors: -

During the 5 years the amounts of the Sundry Creditors


was in a fluctuating condition. These are mentioned as below:
In the Years Of: Values: Situations:
a). As on 31 March,2013:
st
₹4594.04 ---
b). As on 31st March,2014: ₹4780.86 Increased
c). As on 31st March,2015: ₹5952.91 Highly Increased
d). As on 31st March,2016: ₹4590.01 Decreased
e). As on 31st March,2017: ₹4532.33 Slightly Decreased

From the above trend it is apparent, there is a stable


condition in the level of Sundry Creditors. The liability has
several fluctuations throughout the years and shows a
comparatively healthy condition.
----------------------------------------------------------

P a g e 50 | 109
3.5: The Overall Structure of the Passenger Business.

Statement Showing the Overall Profile of Passenger Traffic


during 5 Years: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars
Category Subu Non- Subu Non- Subu Non- Subu Non- Subu Non-
rban Subu rban Subu rban Subu rban Subu rban Subu
rban rban rban rban rban

Passenge 4,47 3,944 4,55 3,845 4,50 3,719 4,45 3,648 4,56 3,550
rs 7 2 5 9 6
originati
ng
(millions
)
Passenge 1,45, 9,52, 1,68, 9,90, 1,51, 9,95, 1,45, 9,97, 1,45, 10,04
r 654 449 589 153 775 415 253 786 417 ,418
kilomete
rs
(millions
)
Average 32.5 241.5 37.0 257.5 33.7 267.7 32.6 273.5 31.8 283.0
lead(kilo
meters)

Earnings 2,01 29,31 2,26 34,27 2,49 39,69 2,57 41,70 2,68 43,59
(₹ in 0.44 2.40 0.66 1.59 3.22 6.39 5.22 8.04 9.44 1.02
crore)

Average 13.8 30.8 13.4 34.6 16.4 39.9 17.7 41.8 18.5 43.4
rate per
passenge
r
kilomete
r (Paise)
-------------------------------

The overall trend of passenger traffic in the last three years was as follows: -

P a g e 51 | 109
Statement Showing the Overall Structure of Total Suburban & Non-suburban
Trends: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars

Passenger earnings 31,322.84 36,532.25 42,189.61 44,283.26 46,280.46


(₹ in crore)

Passenger journeys 8,421 8,397 8,224 8,107 8,116


(millions)

Passenger Kilometers (millions) 10,98,103 11,40,412 11,47,190 11,43,039 11,49,835

Average lead(kilometers) 130.4 135.8 139.5 141.0 141.7

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

Plot: - 3.5:
The Overall Structure of the Passenger Business: -
The Following Is the Graph Demonstrating the Overall
Scenario of The Passenger Business:
-: Passengers Originating (In Millions): -

Passengers Originating (In


Millions)
6000
4000
4566
4459
3944
4477

3845

3648
4552

3550
4505

3719

2000
0
2012-13 2013-14 2014-15 2015-16 2016-17

Suburban Non-
Suburban

P a g e 52 | 109
 Analysis of the Passengers Originating (In Millions): -

Over the years the number of Passengers Originating in the Suburban and
in the Non-Suburban zones were fluctuating to a small extent. From the
above representation it is observed that, passengers in the Non-Suburban
areas were always lesser than the passengers in the Suburban zones. In the
year of 2012-13, passengers in Suburban Areas were 4,477 and
passengers in Non-Suburban Zones were 3,944. In the year of 2013-14,
passengers in Suburban Areas were higher than the previous year (. i.e.,
2012-13), which were 4,552 and in Non-Suburban Zones it was decreased
3,845. In the year of 2014-15, it was further decreased to 4,505 in
Suburban Areas and 3,719 in Non-Suburban Zones. In the year of 2015-16,
a further decrease was found in the Suburban Zones, which was 4,459 and
in Non-Suburban Areas it was 3,648. But in 2016-17, the passengers in
Suburban Zones increased up to 4,566 and in Non-Suburban Areas, it
reached 3,550. It shows favorable condition in this section of activity.
--------------------------------------------------------

-: Passenger Kilometres (In Millions): -

Passenger Kilometres (In Millions)


180000 1050000
170000 1004418
995415 997786 1000000
160000 990153
150000 952449
151775 950000
140000 145654 168589 145417
145253
130000 900000
2012-13 2013-14 2014-15 2015-16 2016-17

Suburban Non-
Suburban

 Analysis of the Passenger Kilometres {In Millions}: -

Over the financial years, it has been observed that, the amounts of the Passenger
Kilometres in the Non-Suburban Areas have been increased fairly at a stretch.
But on the other side, Passenger Kilometres in Suburban areas have shown a
continuous fluctuation throughout the years owing to the dynamic price
changes in other transport systems.
The Following Data Is Showing the Passenger Kilometres In
Suburban & Non-Suburban Areas:
During the years of: Values {In Millions}: Conditions:
Suburban Non-Suburban Suburban Non-Suburban

P a g e 53 | 109
a). 2012-13: 1,45,654 9,52,449 --- ---
b). 2013-14: 1,68,589 9,90,153 Increased Increased
c). 2014-15: 1,51,775 9,95,415 Decreased Increased
d). 2015-16: 1,45,253 9,97,786 Decreased Increased
e). 2016-17: 1,45,417 10,04,418 Slightly Increased High
Increase
Therefore, from the above scenario, it is apparent that, the passenger Kilometres In
Suburban Areas had been increased slightly in the last year, which is not as expected.
But there is a positive sign in Non-Suburban Zones, since amounts of Passenger
Kilometres had been increased by leaps and bounds.
---------------------------------------------

-: Average
lead(kilometers): -

Average Lead {Kilometres}


300.0
250.0
200.0

283.0
257.5

273.5
241.5

150.0
100.0 267.7
50.0 32.5 37.0 33.7 32.6 31.8
0.0
Suburban Non-
Suburban

2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Average Lead (Kilometres): -

During the 5 years the Kilometres of the Average Lead has been chalked out
below: -
Over the years of: Kilometres: Situations:
Suburban Non-Suburban Suburban
Non-Suburban

a). 2012-13: 32.5 241.5


--- ---
b). 2013-14: 37.0 257.5
Increased Increased
c). 2014-15: 33.7 267.7
Decreased Increased

P a g e 54 | 109
d). 2015-16: 32.6 273.5 Slightly
Decreased Increased
e). 2016-17: 31.8 283.0
Decreased Increased
Wherefore, it is apparent that, in the very beginning the scale of Average Lead in Suburban
Areas increased up to 37.0, but after that it started fall continuously. While on the other
hand, Average Lead in Non-Suburban Zones showed a constant increase. More or less,
this situation shows a fair condition of the business.
----------------------------

-: Passenger earnings {₹In Crores}: -

Passenger Earnings( ₹ In Crores)


3000.00 50000.00
43591.02 45000.00
2500.00 41708.04
39696.39 40000.00
34271.59 35000.00
2000.00

2689.44
29312.40 30000.00
1500.00 25000.00
2260.66

2493.22

2575.22
20000.00
2010.44

1000.00 15000.00
10000.00
500.00
5000.00
0.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Suburban Non-
Suburban

 Analysis of the Passenger Earnings (₹ In Crores): -

During the 5 years of the activity, it is found out that a constant increase in the Passenger Earnings in
Suburban Zones, and in Non-Suburban Areas it increased slightly during the first two years of activity,
after that the increase level during the last three years was comparatively much higher than the previous
years.
This trend has been mentioned below: -

Over the years of: Earnings {₹ In Crores}: Conditions:


Suburban Non-Suburban Suburban Non-Suburban
a). 2012-13: 2,010.44 29,312.40 ---
---

P a g e 55 | 109
b). 2013-14: 2,260.66 34,271.59 Increased
Increased
c). 2014-15: 2,493.22 39,696.39 Increased
Increased
d). 2015-16: 2,575.22 41,708.04 Slightly Increased
Slightly Increased
e). 2016-17: 2,689.44 43,591.02 Slightly
Increased Increased
From the above representation it is clear that, throughout the years Passenger Earnings in Suburban
Areas increased with the pace of the Earnings in Non- Suburban Zones.
-----------------------

-: Average rate per


passenger
kilometre (Paise): -

Average Rate Per Passenger Kilometre (In


Paise)

60.0
40.0
41.8

43.4

16.4 17.7 18.5


39.9
34.6

13.4
30.8

20.0 13.8
0.0
2012-13 2013-14 2014-15 2015-16 2016-17

Suburban Non-
Suburban

 Average Rate Per Passenger Kilometre Analysis: -


In the 5 years of journey of this activity, we have observed that a slight increase had been
found in Suburban Zones and in the Non-Suburban Areas, this shows a favourable
condition over the financial years. These Increases & Decreases has been chalked out
below: -
During the years of: Average Rates (In Paise): Conditions:
Suburban Non-Suburban Suburban Non-Suburban
a). 2012-13: 13.8 30.8 --- -
--

b). 2013-14: 13.4 34.6 Slight Decrease


Increase
P a g e 56 | 109
c). 2014-15: 16.4 39.9 Increase
Increase

d). 2015-16: 17.7 41.8 Slight Increase


Increase

e). 2016-17: 18.5 43.4 Slight Increase High


Increase

Hence, we observe that, albeit, a Slight Decrease occurred in the year of 2013-14
in Suburban Zones, there was a favourable situation in this case. Authority should strive
the best to achieve the more success on this activity.
---------------------------------
-: Scenario of the overall Passenger Earnings (₹In Crores):
-

Passenger earnings
(₹ in crores)

50000.00
40000.00 46280.46
44283.26
42189.61
36532.25
31322.84

30000.00
20000.00
10000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Passenger Earnings (₹In Crores): -


From the above graphical representation, it has been observed
that a constant increase took place during the last 5 years of this
activity of the Passenger Earnings in the Indian Railways. In the
year of 2012-13, the earning level was at ₹31,322.84. In the next
year (. i.e., in 2013-14), it reached the scale of ₹ 36,532.25. In the
next year, the earnings level increased much higher than the
previous years, which was ₹ 42,189.61, in the year of 2014-15. It
had risen up to ₹ 44,283.26 in 2015-16. Again, it had been lifted up
to ₹ 46,280.46 in the year of 2016-17. It shows a very healthy
situation during the 5 years. Though authority should have to pay
attention to keep pace with this success.
------------------------------------
P a g e 57 | 109
-: Overall Scenario of the Passenger Journeys and
Passenger Kilometres (In Millions): -

Passenger journeys & Passenger


Kilometres (In Millions)
8500 1200000.00
8400
8300 8421 1147190.00 1143039.00 1149835.00 1150000.00
1140412.00
8200
8100 1098103.00 1100000.00
8397

8224

8116
8107
8000
7900 1050000.00
2012-13 2013-14 2014-15 2015-16 2016-17

Passenger journeys Passenger Kilometres


(millions) (millions)

 Analysis of the Passenger Journeys & Passenger Kilometres


(In Millions): -
During the 5 years of this activity, the following trends are found these are as under:

Passenger Journeys (In Millions): Over the years, it is found that, though
in the first two years comparatively high level, but in the last three years the
level was too low to be stable. In the year of 2012-13 it was 8,421, whereas in
the year of 2013-14, it was 8,397. This was a slight decrease. But in the years
of 2014-15, 2015-16 and 2016-17, it was 8,224, 8,107 and 8,116 respectively. It is
showing a constant downfall of the performance. Authority should take
proper initiatives to overcome this condition.

Passenger Kilometres (In Millions): During the 5 years, it is found that, the
passenger kilometres had more or less increased. In the year of 2012-13, it was
10,98,103. It started to increase in the year of 2013-14, which amounted to
11,40,412. But in the next year (. i.e., in the year of 2014-15, it increased very
slightly, which amounted to 11,47,190. In the year of 2015-16, it decreased with
a small scale of 11,43,039. It came to its own position in the year of 2016-17,
with an amount of 11,49,835. It is showing a positive situation in this respect.

-----------------------------------------------------
P a g e 58 | 109
-: Average Leads (Kilometres): -

Average lead(kilometers)
145.0
141.0 141.7
140.0 139.5
135.8
135.0
130.4
130.0

125.0

120.0
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Average Leads (In Kilometres): -


During the 5 years, the level of the Average Leads had been increased
by leaps and bounds. In the year of 2012-13, it was 130.4. In the next year
(. i.e., in 2013-14), it was increased to a great extent of 135.8. In the year of 2014-
15, it lifted up to 139.5. But in the years of 2015-16 and 2016-17, there was a
very small-scale increase of 141.0 and 141.7 respectively. It shows a positive
condition in this respect.
-----------------------------------------
3.6: Unit Revenues: -
Average Revenues for Different classes During the Last 5 Years, were as
follows: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars
Categor Earni Earnin Earni Earnin Earni Earnin Earni Earnin Earni Earnin
y ngs gs per ngs gs per ngs gs per ngs gs per ngs gs per
per passen per passen per passen per passen per passen
passe ger passe ger passe ger passe ger passe ger
nger journe nger journe nger journe nger journe nger journe
kilom y kilom y kilom y kilom y kilom y
eter (in ₹) eter (in ₹) eter (in ₹) eter (in ₹) eter (in ₹)
(In (In (In (In (In
paise) paise) paise) paise) paise)

P a g e 59 | 109
Suburban
(all 13.8 4.5 15.0 5.0 16.4 5.5 17.7 5.8 18.5 5.9
classes)

Non-
Suburba
n:

AC 1st 264. 1,50 280. 1,82 295. 1,83 275. 1,66 284. 1,74
Class $ 1 8.6 1 3.4 0 4.2 4 4.0 4 3.8

AC 128. 1,04 140. 1,14 147. 1,25 151. 1,28 146. 1,38
Sleeper 4 8.0 6 6.1 9 6.5 3 9.2 8 2.5

743. 106. 902. 115. 987. 120. 998. 128. 1,03


AC 3-Tier 99.7
8 4 2 3 2 7 8 1 9.8

136.
1st class 68.8 65.2 80.2 70.8 77.3 65.9 66.3 61.4 59.8
8

AC Chair 104. 407. 115. 442. 123. 489. 127. 515. 133. 561.
Car 0 6 7 5 4 8 1 2 3 2

Sleeper
Class:

P a g e 60 | 109
(i)
259. 320. 370. 399. 403.
Mail/Ex 34.5 38.1 42.7 45.2 45.7
6 8 1 6 8
press

(ii) 103. 116. 126. 124.


28.0 92.8 32.2 36.1 38.8 39.7
Ordinary 3 6 6 7

Second
Class:

(i)
28.7 101. 100.
Mail/Ex 22.6 80.4 25.4 91.4 28.3 99.3 29.0
0 9 5
press

(ii)
14.5 16.3 17.2 20.6 19.4 23.5 19.9 23.5 20.7 26.0
Ordinary

Total
Non- 106. 114. 122.
30.8 74.3 34.6 89.1 39.9 41.8 43.4
suburba 7 3 8
n

($ includes Executive Class)

-----------------------------------------------------
Plot: - 3.6:
-: Unit Revenues
During the 5 years of
activity: -
P a g e 61 | 109
 Suburban (All Classes): -
-: The Underlying Graph Describing the
Overall Activity of the
Suburban {All Classes}: -

Suburban (All Classes)


20.00 8.00
5.50 5.80 5.90
15.00 5.00
6.00
4.50
10.00 4.00

18.50
17.70
15.00

16.40
13.80
5.00 2.00
0.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Earnings Earnings
per per
passenger passenger
kilometer journey
(paise) (in ₹)

 Analysis of the Suburban (All Classes): -

 Earnings per passenger kilometres and


earnings per passenger journeys {In ₹}: -
During the 5 years of the activity, the level of the Earnings Per
Passenger Kilometres was as follows: -
Over the years of: Values: Situations:
EARNINGS PER- Earnings per-
Passenger Kilometres Passenger Journeys Passenger KMS.
Passenger
Journeys
(In Paise): (In ₹): (In Paise): (In ₹):
a). 2012-13: 13.8 4.5
--- ---
b). 2013-14: 15.0 5.0
Slightly Increased Slightly Increased
c). 2014-15: 16.4 5.5
Slightly Increased Slightly Increased
d). 2015-16: 17.7 5.8
Increased Slightly Increased

P a g e 62 | 109
e). 2016-17: 18.5 5.9
Slightly Increased Slightly Increased
Hence, from the above representation, it is found that there was a favourable
condition during the 5 years in this activity. In spite of it, a regular survey is
needed.
------------------

-:Non-Suburban (All AC Classes): -


The Underlying Graphical Representation Showing the Rise & Fall in the
Non-Suburban {All AC Classes}: -
Non-Suburban (All AC Classes)
800.00 6000.00
4394.40 4645.00 4533.50 4787.10
3844.80 4000.00
700.00
752.40 754.00 2000.00
665.00 708.00 740.40
600.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Earnings Earnings
per per
passenger passenger
kilometer journey
(paise) (in ₹)

 Analysis of the Non-Suburban {All AC Classes}: -


During the years of: Values {₹}: Situations:
EARNINGS PER: - EARNINGS PER: -
Passenger Kilometres Passenger Passenger KMS. Passenger
Journeys Journeys
(In Paise): (In ₹): (In Paise): (In ₹):
a). 2012-13: 665.00 3,844.80 --- ---
b). 2013-14: 708.00 4,394.40 Increased Increased
c). 2014-15: 752.40 4,645.00 Increased Slightly Increased
d). 2015-16: 740.40 4,533.50 Decreased Decreased
e). 2016-17: 754.00 4,787.10 Increased Increased
During the 5 years of activity, it had been found out that, the Earnings Per Passenger
Kilometres and the Earnings Per Passenger Journeys had been fluctuated and in the last
year both are increased. It shows a quite positive situation in this respect.
---------------------------------------------------

P a g e 63 | 109
-: Non-Suburban (All Sleeper Classes); -
Non-Suburban (All Sleeper Classes)
100.00 600.00
526.20 528.50
424.10 486.70
352.40 400.00
50.00

78.80

85.40
84.00
70.30
62.50
200.00

0.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Earnings Earnings
per per
passenger passenger
kilometer journey
(paise) (in ₹)

 Analysis of the Non-Suburban (All Sleeper Classes): -


Over the Years of: Values in Amounts (₹): Conditions:
EARNINGS PER: - EARNINGS PER: -
Passenger Kilometres Passenger Journeys Passenger KMS. Passenger
Journeys
(In Paise): (In ₹): (In Paise): (In ₹):

a). 2012-13: 62.5 352.40 ---


---

b). 2013-14: 70.3 424.10


Increased Increased

c). 2014-15: 78.8 486.70


Increased Increased

d). 2015-16: 84.0 526.20


Increased Increased

e). 2016-17: 85.4 528.50


Increased Increased

Hence, we can observe that, the overall impact of this activity upon finance
of the Railways is good and admirable. But authority should have to pay attention
upon it.
-------------------

-: Non-Suburban {All Second Classes}: -

P a g e 64 | 109
Non-Suburban {All Second Classes}
60.00 150.00
125.40 122.80 126.50
112.00
40.00 96.70 100.00

48.20

49.70
42.60

48.10
37.10
20.00 50.00

0.00 0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Earnings Earnings
per per
passenger passenger
kilometer journey
(paise) (in ₹)

 Analysis of the Non-Suburban {All Second Classes}: -


During the financial years of: Values {₹}:
Situations:
EARNINGS PER: - EARNINGS PER: -
Passenger Passenger Passenger Passenger
Kilometres Kilometres Kilometres Journeys
(In Paise): {In ₹}: (In Paise): {In ₹}:
a). 2012-13: 37.10 96.70 --- ---
b). 2013-14: 42.60 112.00 Increased Increased
c). 2014-15: 48.10 125.40 Increased Increased
d). 2015-16: 48.20 122.80 Slightly Increased Decreased
e). 2016-17: 49.70 126.50 Increased Slightly
Increased
Since, the levels of both the activities had been slightly increased, hence, the Railway
Authority must have to chalk out some plans and scheme as regards this condition to maintain
these performances.

P a g e 65 | 109
3.7: Total Incomes, Operating Margins,Profit After
Taxes
&
Net Worth:
During the 5 years, financial performance of train operations by Indian Railways,
was as under: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹ in Crore) (₹ in Crore) (₹ in Crore) (₹ in Crore) (₹ in Crore)

Particulars
Total 1,136.00 1,277.00 1,323.00 1,625.00 2,153.00
Income:

Operating 173.00 223.00 233.00 314.00 265.00


Margin:

Profit After (235.00) 13.00 39.39 129.50 62.00


Tax:

Net Worth: 1,340.00 1,353.00 1,354.00 1,483.00 1,496.00

P a g e 66 | 109
N.B: - {Figures within the parenthesis represents loss amounts}
-----------------------------------

Plot: - 3.7:
-: Financial Performance Over the 5 Years: -

The Following Is the Scenario of the


Total Income, Operating Margins & Profit After Taxes: -
-: Total incomes: -

Total Incomes (₹ In Crores)


3000.00

2000.00

2153.00
1625.00
1323.00
1277.00
1136.00

1000.00

0.00
2012-132013-142014-152015-162016-17

 Analysis of the Total Incomes (₹ In Crores) During the 5


Years: -
During the 5 financial years, the Total Incomes were increased by leaps and
bounds. In the year of 2012-13, it was 1,136.00. But in the next two years (. i.e.,
in 2013-14 and 2014-15), it was slightly increased to ₹1,277.00 and to ₹1,323.00
respectively. In the year of 2015-16, it had been increased up to ₹ 1,625.00 and
in the year of 2016-17, it was again lifted up to ₹2,153.00. This is showing a
positive sign in this respect.
-------------------------

-: Operating Margin: -

P a g e 67 | 109
Operating Margin (₹In Crores)
350.00
300.00 314.00
265.00
250.00 233.00
223.00
200.00
173.00
150.00
100.00
50.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Operating Margin (₹ In Crores): -


Over the financial years, there were several fluctuations in Operating Margins. In the
year of 2012-13, the level of the Operating Margin was at ₹173.00. In the years of 2013-14 and
2014-15, the level stood at the same position of ₹223.00. In the next year (. i.e., in the 2015-16),
the level was increased up to ₹314.00. In the year of 2016-17, it had been decreased to ₹265.00.
Authority should maintain a proper plan and initiative to recover this situation.

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

-: Profit after taxes: -

Prof it A fter Ta x ( ₹In C rores)


200.00
129.50
100.00
62.00
39.39
0.00 13.00
2012-13 2013-14 2014-15 2015-16 2016-17
-100.00

-200.00
-235.00
-300.00

 Analysis of the profit after taxes {₹In Crores}: -


Over the 5 years, it was seen in the level of Profit After Tax that,
albeit, it showed a negative result in the year of 2012-13, with an
P a g e 68 | 109
amount of ₹ -235.00. But after that it started increasing from 2013-
14, with an amount of ₹13.00. In the year of 2014-15, it was further
increased up to ₹39.39. In the next year (. i.e., in the year of 2015-
16), it was observed that, it had been risen up to a much higher
level of ₹129.50. But in the year of 2016-17, it had been decreased
up to ₹62.00. This is showing the negative sign in this respect.
Railway authority should have to take proper initiative to
overcome this situation and to increase the level of profit.
----------------------------------------------

Financial Statements & Operating Statistics


Financial Statements: -
3.8: Consolidated Profit and Loss Accounts For the 5 Years of Financial Activities: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars

P a g e 69 | 109
I. Gross Traffic 1,23,732.59 1,39,558.18 1,56,710.54 1,64,333.51 1,65,292.20
Receipts

II. Ordinary 84,012.04 97,570.76 1,05,995.88 1,07,735.93 1,18,829.61


Working
Expenses
(including
Payment to
Worked Lines)

III. Contribution 27,560.00 32,750.00 37,000.00 40,100.00 40,200.00


to the Reserve
Funds
(Depreciation
Reserve Fund and
Pension
Fund)
IV. Total 1,11,572.04 1,30,320.76 1,42,995.88 1,47,835.93 1,59,029.61
Working
Expenses: -

V. Net Traffic 12,160.55 9,237.42 13,714.66 16,497.58 6,262.59


Receipts
(Operating Profit)

VI. Miscellaneous 1,454.64 2,511.65 3,123.83 2,730.90 (1,349)


Transactions
(Net)

VII. Net Revenue 13,615.19 11,749.07 16,838.49 19.228.48 4,913.00


(Gross Profit)

P a g e 70 | 109
Less: -

(a) Dividends and 5,348.94 8,008.67 9,173.55 8,722.51 -Nil-


other Payments
to General
Revenues

(b) Payment to -Nil- -Nil- -Nil- -Nil- -Nil-


Deferred Dividend
Liability

Excess $ $$ $$ $$ $$(+)4,913
(+)/Shortfall (–) (+)8,266.25 (+)3,740.40 (+)7,664.94 (+)10,505.97

Notations: -
1). “$” implies the excess was appropriated to the Development Funds (DFs),
Capital Funds (CFs) and Debt Service Funds..
2). “$$” connotates the excess was appropriated to Development Funds (DFs)
and Capital Funds (CFs)..
3). Figures within the parenthesis represents “Loss”.

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

Plot: - 3.8:
-: Financial Statements and
Operating Statistics; -
P a g e 71 | 109
-: Analysis of the items taken into the
(Consolidated) Profit and Loss Accounts
Of Indian Railways: -

Gross Traffic
Receipts

200000.00
150000.00

164333.51

165292.20
156710.54
139558.18
123732.59

100000.00
50000.00
0.00

 Analysis of the Gross Traffic Receipts: -


During the 5 years of the Gross Traffic Receipts, it had
been observed that, in the year of 2012-13, the level of the Gross
Traffic Receipts was ₹1,23,732.59. In the year of 2013-14, the level
was stood at ₹1,39,558.18. In the next year (. i.e., in the year of
2014-15), the level was at ₹1,56,710.54. In the year of 2015-16, the
level further increased up to ₹1,64,333.51. In the year of 2016-17,
the level was increased slightly up to ₹1,65,292.20. This activity
had shown a positive impact upon the financial performance of
Indian Railways.
--------------------------------------------------------

-: Ordinary Working Expenses During the 5 Years: -

P a g e 72 | 109
Ordinary Working
Expenses (including
Payments to Worked
Lines)

150000.00

118829.61
105995.88
100000.00

107735.93
97570.76
84012.04
50000.00

0.00
2012-13 2013-14 2014-15 2015-16 2016-17

o Analysis of the Ordinary Working Expenses (Including Payments to the Worked


Lines): -
Over the financial years, it has been found out that, a constant increase
occurred in Ordinary Working Expenses. In the year of 2012-13, it was ₹84,012.04.
In the year of the 2013-14, it was stood at ₹97,570.76. In the year of 2014-15, it
had increased further up to ₹1,05,995.88. In the year of 2015-16, it was increased
slightly up to ₹1,07,735.93 and in the year of 2016-17, it was reached to
₹1,18,829.61. From this standpoint of view, it can be related that, throughout the
years the expenses had been increased as infrastructure gradually developed.
---------------------------------

-: Net Revenue (Gross Profits): -

Net Revenue
(Gross Profits)
19228.48
20000.00 16838.49
13615.19
15000.00 11749.07
10000.00 4913.00
5000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

P a g e 73 | 109
 Analysis of the Net Revenue (Gross profits): -

Over the financial years, it had been found out that, in 2012-13,
the level of the Net Revenue was at ₹13,615.19. In the year of 2013-14
it had been decreased up to ₹11,749.07 owing to decrease in sales and
high rising Direct and Indirect Taxes. In the year of 2014-15, it had
been increased up to ₹16,838.49. In the year of 2015-16, it again
increased to ₹19.228.48. But it was a slight increase compared to the
other previous years. But in the year of 2016-17, it had been heavily
decreased up to ₹4,913.00. The main reason of this heavy decrease is
the loss in the Pension Fund amounting to ₹-1,349. Authority’s
attention is chiefly required in this activity.
………………………..

Dividends and
other Payments
to General Revenues( ₹)
10000.00
9173.55 8722.51
8000.00 8008.67

6000.00
5348.94
4000.00
2000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Dividends and Other Payments to the General Revenues


(₹): -
From the above graphical representation, it can be noted that, a
continuous increase took place in Dividends and Other Payments to the General
Revenues excepting the year of 2016-17. In the year of 2012-13, it was at ₹5,348.94.
In the year of 2013-14, it was at ₹8,008.67. Again, in the year of 2014-15, the level
had been reached the maximum level with an amount of ₹9,173.55. But it had been
initiated to fell down to ₹8,722.51, in the year of 2015-16. In the year of 2016-17,

P a g e 74 | 109
the level was found to be NIL in this activity. This situation cannot be accepted.
Authority should chalk out some initiative to have the beneficiary credit from it.
---------------------------------

3.9: Statements Supplementary to the Profit and Loss


Accounts: -

Years 2012-13 2013-14 2014-15 2015-16 2016-17


(₹) (₹) (₹) (₹) (₹)

Particul
ars
A. Gross Detai Amou Details Amoun Details Amou Details Am Deta Amoun
Traffic ls nts ts nts ount ils ts
Receipts s
B.
Coachin
g
Earnings
C.
Passeng
er Traffic
i). Full ----- #### ------- ##### ------- #### ------- ### ------ #####
Fares -- ## # ## ### #
ii). Less ----- ------- ------- #### ------- ### ------ #####
than full -- #### ##### ## ### #
fares ## #
Net 31,32 36,532 42,18 44,2 46,280
Amount 2.84 .25 9.61 83. .46
after 26
deductio
n
D.
Parcels
and
other
coaching
traffic
a). 1,59 1,779. 1,962.4 2,021.10 1,91
Parcels: - 3.53 82 1 1.42
b). 94.2 94.68 108.32 128.29 152.
Luggage: 9 75
-
c). 1,36 1,804. 1,927.1 2,222.10 2,24
Others: - 6.41 02 6 7.83
Totals: - 3,054 3,678. 3,997 4,37 4,312.
.23 52 .89 1.4 00
9

P a g e 75 | 109
E. Goods
Earnings
A). Coal, 40,4 43,913 52,304. 54,867.61 49,3
Cokes, 10.2 .10 52 59.3
etc. 4 2
B). 44,2 48,881 52,548. 53,040.62 53,5
General 89.2 .60 02 52.1
Merchan 8 1
dises
C). Other 704. 957.08 914.15 1,202.51 1,28
Traffic 20 3.48
D).Wharf 1,09 1,520. 1,293.2 1,092.25 1,02
age 5.85 93 4 5.89
and
Demur
rage
Less: -
a). (1,2 (1,367. (1,268. (995.34) (882
Refunds 36.9 08) 59) .26)
9)
Totals: - 85,26 93,905 1,05, 1,09 1,04,3
2.58 .63 791.3 ,207 38.54
4 .65
Miscella 4,261 5,721. 5,092 5,92 10,368
neous .36 30 .74 8.5 .04
(Sundry) 5
other
earnings
Total 1,2 1,39, 1,5 1,6 1,65,
Gross 3,9 837. 7,0 3,7 299.
Earnin
gs: -
01. 70 71. 90. 04
01 58 95
Suspense (168. (279.5 (361. 542 (6.84)
(Bills 42) 2) 04) .56
receivabl
e)
Gross 1,2 1,39, 1,5 1,6 1,65,
Traffic 3,7 558. 6,7 4,3 292.
Receipt
s
32. 18 10. 33. 20
(Actuall 59 54 51
y
realize
d): -
F.
Ordinary
Working
Expense
s
a). 5,17 5,585. 6,022.5 6,116.29 7,09
General 2.25 43 6 3.08
Superint
endence
and
Services

P a g e 76 | 109
b). 8,16 9,103. 10,126. 10,734.29 12,2
Repairs 4.45 90 78 44.3
and 6
Mainten
ance of
Permane
nt Way
and
Works
c). 3,83 4,369. 4,659.9 5,119.97 5,73
Repairs 8.01 42 0 7.38
and
Mainten
ance of
Motive
Power
d). 9,03 10,124 11,022. 11,648.82 13,4
Repairs 1.12 .87 80 61.8
and 7
Mainten
ance of
Carriage
s and
Wagons
e). 4,76 5,361. 5,953.0 6,174.62 7,01
Repairs 6.41 24 7 5.44
and
Mainten
ance of
Plant
and
Equipme
nts
f). 7,67 8,575. 9,850.8 10,051.36 10,9
Operatin 5.80 27 6 65.4
g 8
Expenses
–Rolling
Stock
and
Equipme
nt
g). 14,6 16,213 18,827. 20,378.29 23,1
Operatin 10.7 .22 82 86.7
g 1 4
Expenses
–Traffic
h). 22,3 29,234 28,766. 25,783.63 26,1
Operatin 26.9 .98 47 80.8
g 2 9
Expenses
–Fuel
i). Staff 4,06 4,501. 4,994.5 5,296.07 5,77
Welfare 4.33 56 1 2.26
and
Amenitie
s

P a g e 77 | 109
j). 4,02 4,324. 5,139.9 5,611.98 5,90
Miscella 3.21 63 4 2.95
neous
Working
Expenses
k). 511. 740.52 966.40 1,190.19 1,75
Providen 00 1.52
t Fund,
Pension
and
other
Retireme
nt
Benefits
Gross 84, 98,1 1,0 1, 1,19,
Expendi
ture: -
184 35.0 6,3 08 311.
.21 4 31. ,1 97
11 05
.5
1
Suspense (172. (564.2 (335. (36 (482.3
(Bills 17) 8) 23) 9.5 6)
payable) 8)
Ordina 84, 97,5 1,0 1, 1,18,
ry
Workin
012 70.7 5,9 07 829.
g .04 6 95. ,7 61
Expens 88 35
es .9
(Actuall
y
3
disburs
ed): -
G).
Contribu
tion to
Reserve
Funds
a). 6,85 7,900. 7,775.0 5,600.00 5,20
Deprecia 0.00 00 0 0.00
tion
Reserve
Fund
b). 20,7 24,850 29,225. 34,500.00 35,0
Pension 10.0 .00 00 00.0
Fund 0 0
c). Total 27,56 32,750 37,0 40, 40,200
Contribu 0.00 .00 00.0 100 .00
tion to 0 .00
Fund
Total 1,1 1,30, 1,4 1, 1,59,
Workin
g
1,5 320. 2,9 47 029.
Expens 72. 76 95. ,8 61
es: - 04 88 35

P a g e 78 | 109
.9
3
H). 5,32 7,982 9,14 8,6 -Nil-
Dividend 3.21 .94 7.82 96.
and
Other 78
Payment
s to
General
Revenue
i). 23.1 23.12 23.12 23.12 -Nil-
Dividend 2
Paid/
Payable
(Current)
ii). Other 2.61 2.61 2.61 2.61 -Nil-
Payment
s to
General
Revenue
s in lieu
of tax on
Passenge
r fares
iii). On -Nil- -Nil- -Nil- -Nil- -Nil-
account
of
assistanc
e to
Railway
Safety
Fund
Totals: - 25.73 25.73 25.7 25. -Nil-
3 73
I). Total 5,3 8,00 9,1 8, -Nil-
Dividend
payable: 48. 8.67 73. 72
94 55 2.
51
a). -Nil- -Nil- -Nil- -Nil- -Nil-
Deferred
Dividend
paid out
b). Net 5,348 8,008. 9,17 8,722. -Nil-
Dividend .94 67 3.55 51
paid
-------------------------------------------

During the 5 years, the overall scenario of total assets & total liabilities has been
shown in the following statement (Horizontal Form): -

P a g e 79 | 109
3.10: Balance Sheets: -
Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars
I.
LIABILITI
ES: -
A. Loan 1,53,521.36 1,79,681.40 2,08,799.27 2,42,473.64 2,75,584.46
Capital
(advance
d by
General
Excheque
r):
B.
Investm
ent
Finance
d from: -
a). Railway 38,675.93 38,675.93 44,125.17 50,449.91 53,449.91
Capital
Fund:
b). 47,090.76 51,552.12 56,254.89 61,052.56 64,433.27
Depreciati
on Reserve
Fund:
c). 24,849.29 27,410.72 30,005.89 32,921.75 35,408.38
Developm
ent Fund:
d). Railway 7,245.44 9,228.42 11,434.86 14,035.46 24,615.39
Safety
Fund:
e). Special 15,756.05 15,756.05 15,756.05 15,756.05 15,756.05
Railway
Safety
Fund:
f). 1,224.65 1,252.31 1,252.31 1,252.31 1,252.31
Revenue:
g). 1,011.39 1,105.45 1,129.77 1,181.93 1,276.62
Miscellane
ous other
sources:
Totals: 1,35,853.5 1,44,981.0 1,59,958.9 1,76,649.9 1,96,191.9
- 1 0 4 7 3
C.
Reserve
s

P a g e 80 | 109
a). 9.80 1,021.37 1,777.12 32.78 450.50
Depreciati
on Reserve
Fund:
b). 2,332.61 3,053.02 2,013.13 390.63 402.86
Developm
ent Fund:
c). Pension 5.42 419.03 1,360.36 5,657.30 594.76
Fund:
d). Railway 42.68 557.32 1,388.91 907.43 305.43
Capital
Fund:
e). Railway 1,682.90 804.98 97.15 15.52 23.26
Safety
Fund:
f). Special -Nil- -Nil- -Nil- -Nil- -Nil-
Railway
Safety
Fund:
g). Railway -Nil- 169.54 236.07 3,803.26 800.23
Debt
Service
Fund:
Totals: 4,073.41 6,025.26 6,872.74 10,806.92 2,577.04
-
D.
Deposits
(i) State 26,433.98 28,108.84 29,855.44 31,414.09 35,003.54
Railway
Provident
Fund:
(ii) 8,671.72 12,278.52 17,461.84 21,622.96 23,699.98
Miscellane
ous
Deposits:
(iii) F. Loan 210.89 174.74 145.44 108.41 80.60
&
Advances:
Totals: 35,316.59 40,562.10 47,462.72 53,145.46 58,784.12
-
E.
Current
Liabiliti
es: -
(i)Undisch 2,718.87 3,222.98 3,730.55 3,940.31 4,529.08
arged
(Demands
payable):
(ii) 1,875.17 1,557.88 2,222.36 649.70 3.25
Outstandi
ng dues

P a g e 81 | 109
payable to
other
Governme
nt
Departme
nts:
Totals: 4,594.04 4,780.86 5,952.91 4,590.01 4,532.33
-
Grand 3,33,35 3,76,03 4,29,04 4,87,66 5,37,66
Total: - 8.91 0.62 6.58 6.00 9.88
II.
ASSETS: -
F. Block
Assets: -
(i). Fixed
Assets: -
a). Land 6,327.95 6,786.76 9,011.76 16,593.81 25,266.67
b). 1,63,731.48 1,79,997.89 1,90,404.20 2,22,732.53 2,44,269.47
Buildings
and tracks:
c). Rolling 60,540.19 68,241.76 79,308.46 91,937.33 1,03,151.77
stock:
d). Plants 38,534.65 40,458.83 47,167.58 50,577.73 56,377.68
and
equipment
:
e). -Nil- -Nil- -Nil- -Nil- -Nil-
Miscellane
ous assets:
Totals: 2,69,134.2 2,95,485.2 3,25,892.0 3,81,841.4 4,29,065.5
- 7 4 0 0 9
(ii).
Investme
nts: -
a). 2,860.67 2,914.05 4,071.93 3,815.17 3,040.20
Inventory:
b). Works 1,177.70 1,514.09 6,664.74 1,389.18 1,102.28
in progress
(Workshop
s
manufactu
re):
c). 71.94 480.04 6,722.22 (681.72) (1,371.49)
Miscellane
ous
Advance
(Capital):
Totals: 4,110.31 4,908.18 17,458.89 4,522.63 2,770.99
-

P a g e 82 | 109
(iii)
Investme
nt in
other
undertak
ings: -
a). Shares -Nil- -Nil- -Nil- -Nil- -Nil-
in road
transport
undertakin
gs:
b). Other 16,130.29 24,268.98 25,407.32 32,759.58 39,939.81
Governme
nt
undertakin
gs:
Total 2,89,374.8 3,24,662.4 3,68,758.2 4,19,123.6 4,71,776.3
Block 7 0 1 1 9
Assets: -
G. Funds 39,390.00 46,587.36 54,335.46 63,952.38 61,361.16
lying
with
Central
Govern
ment
(Contra-
items C
and D):-
H.
Current
Assets
a). Sundry 1,576.64 1,519.25 1,692.90 1,528.74 1,635.14
debtors:
b). 120.17 127.89 119.59 310.98 546.93
Outstandi
ng dues
from other
Governme
nt
Departme
nts:
c). 1,352.29 1,592.37 1,929.46 1,431.34 1,402.15
Outstandi
ng traffic
earnings:
d). Cash in 1,327.78 1,273.37 1,930.41 1,082.83 675.96
hands:
e). 217.16 267.98 280.55 236.12 272.15
Demands
recoverabl
e:

P a g e 83 | 109
Grand 3,33,35 3,76,03 4,29,04 4,87,66 5,37,66
Total: - 8.91 0.62 6.58 6.00 9.88
----------------------------------------------

Nota Bene: - 1). Figures within the parenthesis represents “Loss”.

Plots: - 3.9:
-: Analysis of the Items Taken into The
Consideration
In the of the Statements Supplementary to the
Profit & Loss Accounts: -
: Parcels and Other Coaching traffic :

Parcels and other


coaching traffic

5000.00
4312.00

4000.00
3997.89

3000.00
3054.23

4371.49
3678.52

2000.00
1000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Parcels and Other Coaching Traffic:


-
Over the years of financial activity of Indian Railways,
we can observe a slight fluctuation has been found out. In the

P a g e 84 | 109
year of 2012-13, the level of this activity was at ₹3,054.23. In the
next year {. i.e., in the year of 2013-14}, it had been increased up
to ₹3,678.52. In the third year (. i.e., in 2014-15), we have seen a
slight increase in this activity of ₹3,997.89. In the year of 2015-
16, it reached the maximum level of ₹4,371.49. But, it had been
slightly decreased to ₹4,312.00. Authority should have to take
proper initiative as regards this activity.
-------------------------------------

-: Goods Earnings (In ₹): -


GOODS EARNINGS (IN ₹)
120000.00
100000.00

109207.65
80000.00
93905.63

105791.34

104338.54
60000.00
85262.58

40000.00
20000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Goods Earnings (In ₹): -


During the 5 years of the financial performance, it is found out in
the year of 2015-16, the level of this activity reached to a maximum
amount of ₹1,09,207.65. In the year of 2012-13, this level was at ₹85,262.58.
In the year of 2013-14, it was slightly increased up to ₹93,905.63. In the
year of 2014-15, the level reached up to ₹1,05,791.34. But on the other
hand, there was a slight decrease in the year of 2016-17, amounting to
₹1,04,338.54. In this case, also the Authority has to pay a proper attention.
--------------------------------

-: Other Earnings {In ₹}: -

P a g e 85 | 109
Miscellaneous (Sundry)
other earnings { In ₹}
12000.00

10000.00 10368.04

8000.00

6000.00 5721.30 5928.55


5092.74
4000.00 4261.36

2000.00

0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Miscellaneous


(Sundry) Earnings: -
Over the years of this activity, it has been observed that, in the year of 2016-17, it
had been reached to the extreme level amounting to ₹10,368.04. in the year of 2012-13, it
had been reached to the tune of ₹4261.36. In the next year (. i.e., in 2013-14), it had been
at the level of ₹5,721.30. But in the year of 2014-15, it had been observed to have decreased
to ₹5,092.74. But, after that situation it tried to catch up its previous condition. In the year
of 2015-16, it had been reached up to ₹5,928.55. It showed a favourable condition in this
activity.
------------------------------

-: Total Gross Earnings: -

-: The Underlying Graph Showing the Total Gross


Earnings
During The 5 Years: -

P a g e 86 | 109
Total Gross
Earnings ( In ₹)

200000.00
150000.00

165299.04
163790.95
157071.58
139837.70
123901.01
100000.00
50000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Total Gross Earnings: -


During the 5 years of the activity, it had been observed that, the
levels of the Total Gross Earnings had been more or less fluctuated
owing to other factors included in this item. In the first year, (. i.e., in
the year of 2012-13), it had at the level of ₹1,23,901.01. In the next year (.
i.e., In the year of 2013-14), it had increased further up to ₹1,39,837.70. In
the year of 2014-15, it also increased up to ₹1,57,071.58. But in the next
year (. i.e., in the year of 2015-16), it had been decreased up to
₹1,63,790.95. But from the next year (. i.e., in 2016-17) it had started to rise
up again and, which amounted to ₹1,65,299.04. From the above
representation, it has been found out that, the levels of this activity are
very unpredictable in nature because of its vagaries throughout the 5
years of financial performances.
---------------------------------------------

-: Ordinary Working Expenses: -

Ordinary Working
Expenses (In ₹)

150000.00
100000.00
107735.93
105995.88

118829.61
84012.04

97570.76

50000.00
0.00

P a g e 87 | 109
 Analysis of the Ordinary Working Expenses {In ₹}: -
Over the 5 year of the financial activity, we have found out that, a
constant variation was there in the levels of Ordinary Working Expenses. In
the year of 2012-13, it was observed that, the level was stood at ₹84,012.04.
It had been further increased up to ₹97,570.76, in the next year (. i.e., in 2013-
14). The level was very slightly increased up to ₹1,05,995.88 in the year of
2014-15. In the year of 2015-16, it reached to ₹1,07,735.93. In 2016-17, a high
increase took place which was amounted to ₹1,18,829.61. This is showing a
positive sign in this respect.
---------------------------------------------------------------------
Plot: - 3.10:
-: Loan Capitals: -
:(Advanced by the General Exchequer):

Loan Capital
(advanced by General
Exchequer) {₹}

300000.00
275584.46
242473.64

200000.00
208799.27
179681.40
153521.36

100000.00

0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Loan Capital {Advanced by the Exchequer}: -


Over the years of the financial performances, it
had been found out that, a continuous increase occurred in the
financial years starting from 2012 and ending at 2017. In this
period the Loan Capital amount reached up to ₹2,75,584.46 in
the year of 2016-17. In the year of 2012-13, it had been at
₹1,53,521.36. In 2013-14, it had been reached up to ₹1,79,681.40.
Again, in the year of 2014-15, it had been reached to
₹2,08,799.27. It further increased up to ₹2,42,473.64. It shows a

P a g e 88 | 109
positive attitude throughout the years. In spite of this, the
authority should pay attention to keep maintaining this level.
-------------------------------------------------
Reserves
-: The Following Is the Graph Describing the
Levels of the Reserves
Throughout the Years: -

Reserves (₹)
12000.00
10806.92
10000.00
8000.00 6872.74
6000.00 6025.26

4000.00 4073.41
2577.04
2000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Amounts of Reserves {In ₹}: -

During the years of this activity, the performance was not


much well. As in the last financial year, we have found a heavy loss
sustained by the Railways as the Reserve levels shown in the graphical
representation. Albeit, it was found to be increased throughout the
years, but in the year of 2016-17 the amount of the Reserves had been
stumbled to ₹2,577.04. In the year of 2012-13, the amount was at
₹4,073.41. In the next year (. i.e., in the year of 2013-14), it was found to
be at ₹6,025.26. In the year of 2014-15, it was slightly increased up to
₹6,872.74. In the next year of 2015-16, it reached up to ₹10,806.92. It is
observed that, in the year of 2015-16, the level was at maximum.
Authority should pay heed to the Reserves level to check the loss in the
foreseeable future.
--------------------------------

-: Current Liabilities: -
P a g e 89 | 109
-: The Following Is the Graph Chart
Showing
The Levels of the Current Liabilities
Throughout the years: -

6000.00

5952.91
4000.00

4780.86

4590.01
4594.04

4532.33
2000.00

0.00
2012-13 2013-14 2014-15 2015-16 2016-17

Over the years, it had been observed that, in the year of 2014-15, the
liability of the company was high, which amounted to ₹5,952.91. In the next year
(. i.e., in 2015-16), it had been dropped down to ₹4,590.01. In the year of 2016-
17, the level of Current Liabilities had been slightly decreased to ₹4,532.33. On
the other hand, it was found that, in the year of 2012-13, the level was at
₹4,594.04. Again, it tried to increase to a small extent of ₹4,780.86, in the year of
2013-14. From this analysis, it is found that, in the very beginning the level was
high, but in the current years, the level of the Current Liability had been
decreased. This shows the positivity of the financial performances.
----------------------------------------------

-: Assets: -
-: Block assets: -
-: The Overall Scenario of the
Fixed Assets
Over the Financial Years: -

P a g e 90 | 109
Fixed Assets { In ₹}

500000.00
400000.00

429065.59
381841.40
300000.00

325892.00
295485.24
269134.27
200000.00
100000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Fixed Assets During the


5 Years: -
Over the 5 years of the activity, the Fixed Assets was
continuously high rising. In the years of 2012 -13 and 2013-14, there
was a slight increase in the Fixed Assets, which amounted to
₹2,69,134.27 and ₹2,95,485.24. But the significant change in the
levels of the Fixed Assets was found out during the years of 2014 -15,
2015-16 and 2016-17, which amounted to ₹3,25,892.00, ₹3,81,841.40
and ₹4,29,065.59 respectively. This is showing the positive attitude
of the performances throughout the years.
-------------------
-: Investments: -
-: Over the Years, the Level of the
Investments
Was as Follows: -

P a g e 91 | 109
Investments { In ₹}
20000.00
18000.00 17458.89
16000.00
14000.00
12000.00
10000.00
8000.00
6000.00 4908.18
4110.31 4522.63
4000.00
2770.99
2000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Investments {In ₹}: -


Over the 5 years, the levels of the Investments
were very unpredictable. In the year of 2014-15, the
amounts invested were at the maximum of ₹17,458.89. At
the beginning (. i.e., in 2012-13), this level reached only up
to ₹4,110.31. In the next year (. i.e., in 2013-14), the level
started to increase up to ₹4,908.18. But from the year of
2015-16, the level was dropped down to ₹4,522.63. It again
dropped down to a great extent of ₹2,770.99. Authority must
have to pay heed to the amounts invested du ring the years.
----------------------------------------------------

-: Funds Lying With the


Central Government
(Contra Items): -

P a g e 92 | 109
Funds lying
with
Central
Government
(Contra-items) ( In ₹)
80100.00
63952.38 61361.16
60100.00 54335.46
46587.36
40100.00 39390.00

20100.00
100.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the funds lying with the central


government (In ₹ ): -
Over the years of the activities, the Funds Lying with the Central
Government was increasing up to the year of 2015 -16, which amounted to
₹63,952.38. In the year of 2012-13, the level of the fund started to increase
with an amount of ₹39,390.00. In the years of 2013-14 and 2014-15, the
increase level was quite significant, these amounts were ₹46,587.36 and
₹54,335.46 respectively. But in the year of 2016-17, the level decreased
slightly up to ₹61,361.16. Authority should have to pay heed to this performance
of Railways.
------------------------

-: Current Assets (In ₹): -

Current Assets ( In ₹)
7000.00
6000.00 5952.91
5000.00 4780.86 4590.01
4594.04 4532.33
4000.00
3000.00
2000.00
1000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

P a g e 93 | 109
 Analysis of the Current Assets {In ₹}: -
Over the 5 financial years, the performances were very poor in this
regard. In the year of 2014-15, the level of the Current Assets was at ₹5952.91.
In the very beginning (. i.e., in 2012-13), the level of the Current Assets was at
₹4594.04. It started to increase in the year of 2013-14, the level was at ₹4780.86.
In the years of 2015-16 and 2016-17, the level was started to decrease, which
amounted to ₹4590.01 and ₹4532.33 respectively. A proper attention is required
in this respect.
-------------------------

Railways’ Contribution
to the Plan:
Statements Showing the Overall Scenario of Sources of
Funds and Its Applications: -

Years 2012-13 2013-14 2014-15 2015-16 2016-17


(₹) (₹) (₹) (₹) (₹)

Particula
rs
Figur Deta Amoun Deta Amoun Deta Amoun Deta Amoun Deta Amoun
ils ts ils ts ils ts ils ts ils ts
es: -
Intern
al
Resou
rces
Gener
ation:
-
Excess 8,266.2 3,740.4 7,664.9 10,505. 4,913.0
(+) for 5 0 4 97 0
the
year
Contri
bution
from
Reven
ues
and
Capital
to
Reserv
e

P a g e 94 | 109
Funds:
-
a). 7,05 8,10 7,97 5,80 5,40
Depreci 0.00 0.00 5.00 0.00 0.00
ation
Reserve
Fund
b). Spl. -Nil- -Nil- -Nil- -Nil- -Nil-
Railway
Safety
Fund
c). -Nil- -Nil- -Nil- -Nil- -Nil-
Capital
Fund
d). (1.3 403. 897. 4,15 (5,06
Pension 3) 27 92 9.34 2.54)
Fund
(Net)
e). 28.0 27.6 -Nil- -Nil- -Nil-
Open 2 7
Line
Works
finance
d from
Revenu
es
f). 81.9 261. 365. 391. -Nil-
Interest 8 26 24 39
on
Fund
Balance
s
Sub- 7608.6 8792.2 9238.1 10350. 337.4
Totals: 7 0 6 73 6
-
Total
15,4 12,5 16,9 20,8 5,25
Internal
Cash 24.9 32.6 03.1 56.7 0.46
Balance 2 0 1 1
s: -
Borro
wing
from
Gener
al
Reven
ues
(Inter
est
beari
ng)
(a) On 22,0 25,3 27,8 26,6 24,3
Capital 40.4 61.2 23.7 80.5 19.9
accoun 0 2 7 8 9
t
(b) As
Tempo
P a g e 95 | 109
rary
Loans:
(i) -Nil- -Nil- -Nil- -Nil- -Nil-
Reserve
Fund
(ii) -Nil- -Nil- -Nil- -Nil- -Nil-
Develo
pment
Fund
(iii) -Nil- -Nil- -Nil- -Nil- -Nil-
Capital
Fund
Contri
bution
from
Gener
al
Reven
ues
(Non-
intere
st
beari
ng): -
1). On -Nil- -Nil- -Nil- -Nil- -Nil-
account
of SRSF
2). On 1,10 1,10 1,49 2,51 10,7
account 5.06 5.06 8.61 0.21 32.0
of RSF 3
Total 23,145 26,466 29,322 29,190 35,05
contrib .46 .28 .38 .79 2.02
ution
receive
d from
the
General
Revenu
es: -
Total 38,5 38,9 46,2 50,0 40,3
Sourc
e of 70.3 98.8 25.4 47.4 02.4
Funds 8 8 8 9 8
:-

N.B: - 1). Figures within the parenthesis represents “Loss” Amounts.


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

3.12: APPLICATION OF FUNDS:


Years 2012-13 2013-14 2014-15 2015-16 2016-17
(₹) (₹) (₹) (₹) (₹)

Particulars
P a g e 96 | 109
Subjects: - Deta Amou Deta Amou Deta Amou Deta Amou Deta Amou
ils nts ils nts ils nts ils nts ils nts
Acquisiti
on of new
assets
and
replacem
ent of
existing
assets: -
Acquisitio
n Charged
to:
a). Capital: 22,0 25,3 27,8 26,6 24,3
40.4 61.2 23.7 80.5 19.9
0 2 7 8 9
b). Railway -Nil- -Nil- 5,44 6,32 3,00
Capital 9.24 4.74 0.00
Fund:
c). 2,45 2,56 2,61 2,93 2,49
Developme 7.82 1.43 1.07 1.62 7.83
nt Fund:
d). Railway 1,57 1,98 2,20 2,60 10,7
Safety Fund: 8.32 2.98 6.44 0.60 32.0
3
e). Special -Nil- -Nil- -Nil- -Nil- -Nil-
Railway
Safety Fund:
f). Open 28.0 27.6 -Nil- -Nil- -Nil-
Line Works 2 7
(Revenue):
g). 7,04 7,11 7,28 7,58 4,98
Replacemen 5.47 9.91 6.93 8.95 2.01
t Charged to
Depreciatio
n Reserve
Fund:
Total 33,1 37,0 45,3 46,1 45,5
Investme 50.0 53.2 77.4 26.4 31.8
nt: - 3 1 4 8 5
Repayme
nt of
loans
obtained
for:
a). 3,00 -Nil- -Nil- -Nil- -Nil-
Developme 0.00
nt Fund:
b). Railway -Nil- -Nil- -Nil- -Nil- -Nil-
Capital
Fund:
Sub- 300 -Nil- -Nil- -Nil- -Nil-
Totals: - 0.00

P a g e 97 | 109
Interest
paid on
temporary
loans: -
i). 117. -Nil- -Nil- -Nil- -Nil-
Developme 56
nt Fund:
ii). Railway -Nil- -Nil- -Nil- -Nil- -Nil-
Capital
Fund:
Increase(+ 2,30 1,94 848. 3,92 (-
)/Decreas 2.79 5.67 03 0.99 )8,2
e (–) 32.4
1
in Funds
Balances
Sub- 242 1,94 848. 392 (-)
Totals: - 0.35 5.67 03 0.99 823
2.41
Total 38,5 38,9 46,2 50,0 37,2
Applica 70.3 98.8 25.4 47.4 99.4
tion of 8 8 7 7 4
Funds:
-
Nota Bene: Figure With “Negative Sign” represents losses.
-------------------------------------------------------

Working Notes of Enumeration of Increase (+)/decrease (-) in funds balances: -

Years 2012-13 2013-14 2014-15 2015-16 2016-17

Particulars

Opening balance in 1,770.62 4,079.59 6,024.71 6,885.69 10,809.22


all Funds as on
1st April
Closing balance as 4,073.41 6,025.26 6,872.74 10,806.68 2,576.81
on 31st March

Increase (+)/Decrease (–) 2,302.79 1,945.67 848.03 3,920.99 (8,232.41)


in balance comprised of:

Depreciation 4.82 1,005.39 756.31 (1,753.29) 417.99


Reserve Fund

Development Fund 2,328.12 720.41 (1,039.89) (1,617.98) 17.17

P a g e 98 | 109
Pension Fund (1.10) 413.62 941.32 4,296.94 (5,062.54)

Railway Capital 444.21 514.63 831.59 (481.47) (602.00)


Fund

Railway Safety Fund (473.26) (877.92) (707.83) (90.39) -Nil-

Special Railway -Nil- -Nil- -Nil- -Nil- -Nil-


Safety Funds

Debt Service Fund -Nil- 169.54 66.53 3,567.18 (3,003.03)

Total: - 2,302.79 1,945.67 848.03 3,920.99 (8,232.41)

Nota Bene: - The Figures Within the Parenthesis Represent the Amounts of “Loss”.
-----------------------------------------------------

Plot: - 3.11:
-: An Analysis of the Total
Sources of the Funds: -

P a g e 99 | 109
Source of
Funds ( In ₹)

60000.00
50000.00

50047.49
40000.00

40302.48
38570.38

46225.48
38998.88
30000.00
20000.00
10000.00
0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Sources of Funds (In ₹): -


During the 5 years of this activity, it was found that, the levels of the
Sources of the Funds were very unpredictable because of its constant increases and
decreases. In the year of 2012-13, the level was at ₹38,570.38. In the next year (.
i.e., in the year of 2013-14), the level of increase was very slight, which amounted
to ₹38,998.88. In the year of 2014-15, the level was at ₹46,225.48. But in the year
of 2015-16, this level of activity reached to the maximum one, which amounted to
₹50,047.49. From the year of 2016-17, it had been started to decrease and the
amount was ₹40,302.48. The level of the Sources of the Funds was very
Disappointing, authority should pay heed to this activity more vividly.
-------------------

Plot: - 3.12:
-: An Analysis of the
Applications of the Funds: -

P a g e 100 | 109
Application of
Funds ( In ₹)

60000.00

50000.00

46225.47
40000.00

38570.38
30000.00

50047.47
38998.88

37299.44
20000.00

10000.00

0.00
2012-13 2013-14 2014-15 2015-16 2016-17

 Analysis of the Total Applications of the Funds: -


Throughout the financial activity in the Indian Railways, we have found out that,
Application of the Funds are fluctuating in its nature. In the years of 2012-13 and 2013-14,
it was found that the level was more or less the same, which amounted to ₹38,570.38 and
₹38,998.88 respectively. In the of 2014-15. It started to increase significantly with an
amount of ₹46,225.47. In 2015-16, the level was high enough of ₹50,047.47. But from the
year of 2016-17, it started to go down with an amount of ₹37,299.44. This shows the total
fund, which had been invested had not been used up properly or there may be some misuse
of funds. Authority must have to pay heed to this activity.

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

Chapter: - Four
-: Conclusion of the Study: -
Chapter Plannings: -
Findings of the Study
Limitations of the Study
Suggestions for Further Studies
Conclusions
Bibliography

P a g e 101 | 109
4.1: Findings of the Study:
This section discusses the objectives pertaining to research questions presented in the
Chapter one in detail. The aim of this section is to explore the extent to which the objectives
were achieved in the study to comprehend the specific outcome of each objective.
Transport systems are the Brain and Brawn of an economy of any country and Indian
Railways does so, to keep maintaining the economic stability of India.
This sector is fully a Government Sectors, and managed by the Government of India and
its employees systematically as mentioned in the “Organizational Structures” and its
“Apex Management”.
The company, follows up “Cash-Basis” accounting procedures, but it is going to approve
“Accrual-Basis” of accounting techniques in the near future.
This company {Indian Railways}, had lost its power to prepare “Rail Budgets” separately
as its budget had been merged with the general budgets
The company has once considered as that this PSU can never be able to make profit. But
after 1960s, it initiated to keep beating other sectors, generating more net surpluses and
thus it proved the earlier concept about this PSU wrong.
This Company, runs both the services one is “Public non-profit seeking Services” and
“commercial services”.
The company, introduced many schemes to modernize the overall journey experiences.
The rise in freight revenue — the main plank of the IR financial turnaround — was
facilitated by the increased domestic demand for coal (for electricity generation), for
cement (for construction) and pig iron (for steel plants) due to economic growth. There
was also an increase in the iron ore for exports (mainly to the Chinese market).
In the Non-Suburban Zones, the levels of the Passenger Earnings are representing high
achievement, which denotes a constant level of financial growth.
This company has decided to tie up with other rail transport system running abroad to get
financial assistances for the future transport project of IR (like, Indo-Japan Collaboration
to succeed “Semi-High-Speed Bullet Train Project”).
The decline in overall interest rates and liberalisation and expansion of financial markets
towards abroad helped the IR to raise external resources with ease.

4.2: Limitations of the Study:


The study suffered from many limitations, stated as under: -

 Shortage of Time: If there were a lot of time available to study upon this topic, different
aspects of this topic can be elaborately discussed.

P a g e 102 | 109
 Lack of Information: The data and information represented in this project is mainly
secondary data, which may not be completely accurate and the study was conducted taking
a limited short period of 5 years and hence, it was unable to represent complete scenario
of annual financial report of Indian Railways, it only reflected a partial view.
 Incomplete Accounting Procedures: Indian Railways does not maintain “Accrual-
Basis” of accounting and hence, financial statements, in this regard, displays only one side
of accounting.
 Problem in proper valuation of Fixed Assets: In the financial statements, it couldn’t
be determined that how many fixed assets, the Indian Railways occupies. So, we were
unable to valuate properly the price of the fixed assets in this case.
 Usage of simple statistical tools: Many other tools could be used to minutely clarify the
rise and downfalls and profit and losses during the financial activities.
 Limited comprehension: The study suffers from limited understandings of the subject.

4.3: Suggestions for Further Studies:


o The study can be conducted taking more financial years.
o Graph Charts had followed the few selected items mentioned in the tables, which can be
further extended for overall clear understandings.
o Financial analysis can be done taking many aspects for in-depth view and more advanced
tools can be used up for perfect presentation.
o The study was grossly followed the indigenous aspect of IR. This study can be further
extended to the International aspects to deliberate Indian Railways’ collaborations with
foreign rail systems in-depth and financial managements, in this regard.
o Further studies on the topic can be conducted on:
 Separate financial report of different zones.
 The complementarities -rail/road and rail/airlines.
Freight transportation through railways.

4.4: Conclusions:
Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround
from a low performing organisation to a high performing one in about five years. The
foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the
former Railway Minister, Mr Yadav, implicitly accepted in his first budget speech. It goes
to the credit of Mr Yadav that he not only continued those policies (though initiated by a
rival political party member) but importantly ensured that they produced results. This
demonstrates that the organisation moved away from past malaise of politicisation of
decision-making processes and policies, to a more corporate minded commercial focus. It
adopted three major strategies for a turnaround. Through the retrenchment strategy it was
successful in reducing the operating cost. It focussed on dynamic pricing and customer

P a g e 103 | 109
centric sub-strategy within the overall repositioning strategy to significantly increase
revenue — in particular the freight revenue. Reorganisation strategies like human resource
development initiatives and achievement of efficient outcomes through decentralisation of
authority and responsibility aided the IR turnaround. Importantly, the IR benefited from
favourable macro-economic environment like increase in the growth rate of the economy
and the growth of exports. The implication of our study is that an organisation’s turnaround
success needs to be put in a much wider context. It could be due to ‘good luck’ and not due
to ‘good management’ alone as most of the extant literature tends to suggest.

Bibliography: -
The followings are the webpage references from where the
Study Materials had been found out: -

I. Introductions as regards the Indian Railways:


http://shodhganga.inflibnet.ac.in/bitstream/10603/186017/6/06_chapter%201.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/37239/6/chapter4.pdf

https://www.iracst.org/ijcbm/papers/vol5no52016/16vol5no5.pdf
II. Reviews of the Literatures (Writers’ Names, Years of research & Abstracts):
https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/37239/4/chapter2.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/54213/8/08_chapter%202.pdf
III. Objectives of the study:
{Points no. 1 & 9}:
http://shodhganga.inflibnet.ac.in/bitstream/10603/132637/7/07_chapter1.pdf
{Point no. 3 Only}:

http://shodhganga.inflibnet.ac.in/bitstream/10603/24250/17/17_abstract.pdf
{Point no. 5 Only}:

http://shodhganga.inflibnet.ac.in/bitstream/10603/26024/14/14_summary.pdf
IV. Introductory Statements to the Indian Railways:

http://shodhganga.inflibnet.ac.in/bitstream/10603/36580/9/09_chapter01.pdf
V. An Overview of the Indian Railways:

P a g e 104 | 109
http://shodhganga.inflibnet.ac.in/bitstream/10603/36580/9/09_chapter01.pdf

https://irtpms.in/site/wp-content/uploads/2017/09/general-overview.pdf

https://en.wikipedia.org/wiki/Future_of_rail_transport_in_India
VI. The Advantages of the Indian Railways:

http://www.yourarticlelibrary.com/railways/indian-railway-significance-and-problems-
of-indian-railways/14136
VII. The Drawbacks of the Indian Railways:

http://www.yourarticlelibrary.com/geography/transportation/advantages-and-
disadvantages-of-railway-transport/42134

http://www.shareyouressays.com/knowledge/10-major-problems-faced-by-indian-
railway/110874
VIII. Collected Data & Information as for the 5 Years’ Financial Activities and Trends
relating to the Indian Railways:
{2012-13}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,3
04,366,554,1451,1453

{2013-14}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,3
04,366,554,1554,1558
{2014-15}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,3
04,366,554,1683,1687
{2015-16}:

http://indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/2015-
2016/Annual%20Report%20English_2015-16.pdf

{2016-17}:

http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/IR
SP_2016-
17/Facts_Figure/Indian%20Railways%20Annual%20Report_Accounts%20English%
202016-17.pdf

IX. Findings of the Studies:

https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf

P a g e 105 | 109
X. Suggestions for the Further Studies:

http://shodhganga.inflibnet.ac.in/bitstream/10603/26024/14/14_summary.pdf
XI. Conclusions of the Studies:

https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf

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

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