INDIAN RAILW=
AYS
ACCOUNTS DEPARTMENT - A FUTURISTIC VIEW
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-V.A.PA=
DMANABHAM,
IRAS
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Sr.AFA/CON/SC RLY.
As =
the year
comes to a close, it is customary for individuals, organizations and entiti=
es
to take stock of the performance in the last one-year and reflect qualitati=
vely
to analyze and conclude whether what should have been achieved has actually
been realized and what is the gap between expectations and actuality. This
would naturally provide an opportunity to redefine the goals and search for
viable alternatives to rearrange the plans and programmes. It is very much =
easy
to attempt such analysis for an individual or for a small organization but =
the
same is not a case with Indian Railways Accounts Department whose future is
inseparably interwoven with growth and prospectus of Indian Railways perhaps
the biggest organization functioning under single management in World Rail
systems. However, attempting is not a sin and self-analysis or self examina=
tion
is considered as noble way according to Indian Philosophy and while doing s=
o, I
restrain myself as a water drop on a lotus leaf- displaying as much dispass=
ion
as possible to the best of my ability.
Accounts Department in any organizatio=
n more
particularly in a big entity like IR is facing challenges on four sides viz=
.,
Professional, Organizational, Technological and Attitudinal. While
technological challenges brought in sweeping changes and reforms over last
decade in the Accounting function, which has been taken over by computers,
professional challenges are onerous and multifarious in the sense the deman=
ds
of profession are innumerable. The expectations of customers both internal =
and
external have undergone tremendous change and every single action is looked
through microscopically. The most important requirement at this juncture for
every Finance and Accounts personnel is to reflect honestly to reassure him=
self
or herself whether he or she is truly professional at his desk and demanding
professional obligations can be ably met with present qualification and ski=
lls
and whether there is an impending need to retrain and rededicate in the
service.
Most significant challenge is in relat=
ion to
Attitude of individual. Positive and constructive attitude without sacrific=
ing
professional content is the need of the hour. Financial scrutiny of proposa=
ls
and internal check of payments and income of Railways should not lead to
compromising with professional integrity but the attitude should be straight
and accurate and approach to issue is on professional lines than based on
personal perceptions and prejudices. With the increasing trend of reforms
taking shape in IR, it would be too complicated task for an Accounts Person=
nel
to redefine and readjust to the changing frame of organization. For instanc=
e,
Outsourcing of different activities is a buzzword in Government Departments
including IR. With different activities hitherto being carried out
departmentally by Railways being thrown open to outsiders, the system of pr=
eparation
of tender documents and spelling out terms and conditions should be accurate
and professional as any small omission will not only lead to financial loss=
but
also delay the tasks besides leading to legal battles. Financial expertise =
will
play a vital and positive role in this area. To quote an example: Leasing of
SLR space in passenger trains is a new area of tendering wherein departments
like commercial and operating are required to gear up professionally with
tendering process and
Accounts Department has lot to offer with its varied and rich experi=
ence
in this area. Here comes
attitudinal angle where professional skills are called for.
Turning back to reflection on the last
one-year and attempting to reassess our professional skills and redefine our
goals and priorities, the need of the hour is go through the provisions in =
rule
books and identify the redundant spots and try to get them amended to enable
the Accounts Department to play a meaningful role in Railways. For instance,
items requiring prior finance concurrence are far too many and the rules of
internal check were framed when computerization, privatization and economic
reforms did not even come to any one’s imagination. With the liberal
delegation of powers to General Managers, more specifically up to Rs.100 cr=
ore
in respect of estimates and contracts and also to sanction revision to
estimates, the quantum of responsibility levels at Zonal railways is very h=
igh.
Systems and procedures are to be refined and reformulated.
On Accounting side, it is heartening t=
o note
some path breaking exercises are initiated in the form of reducing the time=
lag
involved in presentation of Account Current, it is equally important to
simplify or do away with Apportionment of earnings for the purpose pf prese=
nting
Account Current while the same is to be continued to judge the efficacy of a
Zonal Railway as Profit Center. This will cut short the time taken in the
preparation of Account Current on Railways.
Qualitatively, the presentation of =
Profit
and Loss Account and Balance Sheet are no way nearer to professional approa=
ch
and there is a great need to evolve and publish Indian Railway Accounting
Standards on various topic beginning from Glossary of terms and definitions=
and
methods of working out profit and making provisions for depreciation, lease
charges, pensionary contribution and calculation of Dividend to General
Revenues etc., In respect of Production units and Workshops, it is equally
essential to revitalize the systems to fall in line with changing needs of
Railways. Costing systems adopted need reforms and a serious attempt to evo=
lve
professionally reliable and intelligible costing systems.
The aforementioned suggestions are mad=
e, as
Indian Railways are a matter of interest to Government, Management, General
Public and economists in addition to financial participants like State
Governments, Industry and financial institutions like Asian Development Bank
and World Bank. It is absolutely essential to be transparent and communicat=
ive
than adopting a big brother attitude which is no longer relevant now. It is also essential on the part o=
f IR
to disseminate information on finances, earnings and status of assets and
liabilities of Railways to general public through print and electronic medi=
a in
the form of Quarterly results as in the case of PSUs/MNCs/Private Sector wh=
ich
we rarely come across on Railways excepting routine reporting by Ministry at
budgetary stages/reviews. Finance and Accounts can play a meaningful role in
this area.
Accounts Department should change and =
the
change should be scientific and professional, positive and participative,
structural and dynamic leading to value addition to organization in terms of
approach, content and quality. Contribution should be lasting and praisewor=
thy. The Organizational chemistry should
undergo deep introspection and analysis to function efficiently and effecti=
vely
in the vibrant and dynamic economic environment of the country. In the era of mergers, acquisition=
s and
transformations taking place in the country, conditions are conducive for
growth and acceleration and positive minds, proactive individuals and promi=
sing
organizations like IR will have to take the opportunity in to stride and mo=
ve
forward. Railways along with Nation and in this cause Accounts Department a=
cts
as an important link and let every one of us be proud to be part of it.
********