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Report of the Principal Director of Audit Metro Railway Kolkata 2011-12

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Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT RAILWAY PRODUCTION UNITS AND METRO RAILWAY KOLKATA Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 2010-11 14 STRAND ROAD, NEW KOILAGHAT BUILDING ( 5 T H FLOOR) KOLKATA - 7 0 0 0 0 1 ORGANISATIONAL SET-UP IN METRO RAILWAY General Manager Chief Signal & Chief Chief Chief Engineer Chief Electrical Telecommuni Operations Personnel (Civil) Chief Medical Engineer cation Manager officer Superintendent Engineer Chief (CSTE) Chief Dy. Chief Electrical Dy. Chief Chief Engineer Addl. Chief Electrical Transportation Engineer/ Personnel (Construction) Medical Engineer Dy. CSTE Manager Construction Officer Superintendent /Rolling Stock Note: This delineation is for PHOD/HOD and SAG levels (ii) Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Table of Contents Chapter PARTICULARS PAGE Preface Kolkata Metro Map Organisational Set-up in Metro Railway Financial Results of the Metro Railway Financial Results 1 Gross Traffic Receipts 2 Passenger Earnings 3 CHAPTER-1 Efficiency Indices Operating Ratio 5 Capital-Output Ratio 6 Specific Energy Consumption and Energy 7 Consumption: Comments on Appropriation Accounts Summary of Appropriation Accounts 2011-12 8 Savings exceeded `1 crore under various Minor Heads/Plan Heads of Grants, 9 Comments on Finance Accounts and Appropriation Accounts: CHAPTER-2 Improper accounting & exhibition of “Remittance 9 into Bank” A/c Defects in Budgeting during the year 2010-11 10 ( Grant-16) Non-crediting of retired assets to Capital Account 10 Operating and Commercial Preamble 12 Highlights of Transaction Audit: Contract Management Irregularities during the preparation of Balance sheet for CHAPTER-3 12 the month of October 2011. Shortage of Smart Cards 12 (A) (v) ) Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Inconsistencies in accountal of CR Notes, Smart Token have been noticed in the stations at Dum Dum (DMI) 13 and Maidan of Metro Railway, Kolkata. Civil Engineering Preamble 14 Study Report on “Cost-sharing procedure between 14 Metro Railway, Kolkata and the Government of West Bengal on the Tollygunge-Garia project”. Highlights of Transaction Audit Redundant or wasteful expenditure. 16 CHAPTER-4 Time over-run resulting in cost over-run to the tune of ` 2.51 crore. 17 Approval of excess expenditure of ` 8.25 crore 18 without addressing the vitiation aspect properly Electrical Department Preamble Highlights of Transaction Audit Avoidable expenditure of ` 0.31 crore incurred due to 20 CHAPTER-5 Low Power factor and Load Factor. Non-supply of overhauling kits for Pneumatic Brake 21 and Door System of BHEL Coaches. Wasteful expenditure on procurement of stock 22 Stores Department Preamble 23 CHAPTER-6 Highlights of Transaction Audit Non-implementation of MMIS in Metro 23 Defective Smart Tokens 23 24 Inadequate internal control mechanism. Personnel Department CHAPTER-7 25 Preamble Highlights of Transaction Audit Irregular grant of increment. 25 Non-deduction of obligatory Income Tax of ` 0.042 26 crore from compensation claim. (B) ) (v) Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Security Department CHAPTER-8 Preamble 27 Study report on Security arrangements to safeguard the 27 commuters’ interest Highlights of Audit Findings 28 Non-maintenance of Theft and Loss Register. Signal and Telecommunication Preamble Highlights of Transaction Audit 29 CHAPTER-9 Irregularities in maintenance of various registers-lack of 29 internal control mechanism. CHAPTER-10 Audit Effectiveness 31 (C) ) (v) Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Chapter I Financial Results of the Metro Railway This Chapter focuses on a comprehensive analysis of the financial position of the Metro Railway during 2011-12. It brings out the analysis of the critical changes in the key financial indicators from the previous year as well as the overall trends: Key changes in financial position of 2011-12 as compared to 2010-11 at a glance: There was a growth of 3.86 percent (` 3.98 crore) in Gross Traffic Receipts over 2010-11. Total Working Expenses increased by 42.66 percent (` 99.61crore) from the previous year. Net revenue decreased by 73.36 percent (` 96.03 crore) over 2010-11. Traffic earnings increased by` 3.99 crore during the year 2011- 12 as compared to the previous year 2010-11. Passenger earnings went up by 5.04 per cent over the previous year. MR carried 8.3 million (5.22 per cent) more passengers as compared to the previous year. Increase in average lead per passenger by 0.14 kilometers in 2011-12 (10.33 km) in comparison to 2010-11(10.19 km). Earnings for carrying a passenger over one kilometer fell short by 0.85 paise in 2011-12 (52.81 paise) as compared to 2010-11 (53.66 paise ). The Operating Ratio which was at 221.28 in 2006-07 has gone up to 310.89 in 2011-12. Capital-Output Ratio at 56.03 in 2010-11 has gone up to 61.74 in 2011-12. ~ 1 ~ Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 The financial results of the Metro Railway for the year 2011-12, a comparison of the Actual of the 2011-12 with the previous year (2010-11) are shown below: Table 1 (` in crore) S. No. Particulars Actual 2010-11 Actual 2011-12 1 Gross Traffic Receipts 103.16 107.14 2 (a) Miscellaneous Receipts 0.0098 0.0060 (b) Miscellaneous Expenditure 0.602 0.9954 Net Miscellaneous Receipts (a) – (-) 0.5920 (-) 0.9894 (b) 3 Total Receipts (1 + 2) 102.57 106.15 4 (a) Ordinary Working 189.21 207.60 Expenses (Excluding Appropriation to Funds) (b) Less operational loss on 0 0 strategic lines 5 Appropriation to 1 (a) Depreciation Reserve 13.00 86.80 Fund 31.27 38.69 (b) Pension Fund 6 Total Working Expenses 233.48 333.09 (4+5) 7 Net Revenue/ (3-6) (-) 130.91 (-) 226.94 Only increase of 3.86 per cent (` 3.98 crore) in the year 2011-12, in Gross Traffic Receipts over 2010-11, hardly justified any cost effectiveness of the Railway and that effect too was completely annulled by the huge margin of increase of ` 99.61 crore (42.66 per cent) in Total Working Expenses, thereby leading to the consequential massive decrease in the net revenue by 73.36 per cent (` 96.03 crore) as compared to the previous year. Gross Traffic Receipts Contrary to the trend in all Indian Zonal Railways, where Earnings from Freight Traffic is the main source of revenues, in respect of Metro Railway, Kolkata, Passenger Earnings is the main source of revenue, besides Sundry Other Earnings obtained through commercial exploitation of property, advertising etc. The detailed break-up of the Traffic Receipts of the Railways for the year 2011- 12 alongwith actual of previous year’s receipts are shown in Table 2: 1 Excluding interest on funds. ~ 2 ~ Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Table 2 (` in crore) Traffic Earnings Actual 2010-11 Estimate 2011-12 Actual 2011-12 Passenger 86.98 90.00 91.36 Sundries including 16.17 18.70 15.78 suspense Total 103.15 108.70 107.14 There was an overall increase in Traffic Earnings by ` 3.99 crore during the year 2011-12 as compared to the previous year 2010-11. Sundry Earnings constitute to 14.73 per In spite of having an extension of 8.6 cent (2011-12) of Total Earnings. km services from Tollygunj to New Short realization of Sundry Earnings Garia (Kavi Subhash) in October (` 2.92 crore) in 2011-12 in comparison 2010, the earnings, however, to estimated ones have also been noticed decreased by ` 1.56 crore from what which indicates that sufficient initiatives was initially estimated. were not taken in respect of earnings from Advertisements. 120 108.7 100 103.15 107.14 86.98 E 90.00 91.36 80 A R 60 N 40 16.17 I 18.7 15.78 20 N G 0 S ACTUALS 2010- ESTIMATE 2011- ACTUALS 2011- 11 12 12 TRAFFIC RECEIPTS OF METRO RAILWAY Passenger Sundries including suspense Total Figure 1 Further review revealed that Advertising Fees and Scrap disposal constituted 97.60 per cent of the total Sundry Earnings (2011-12). The balance amount was contributed by diet charges from patients in Railway Hospitals, Rent from Residential Buildings etc. The results of the review of the Metro Railways’ performance in passenger traffic are discussed in the succeeding paragraphs: Passenger Earnings The trends in passenger earnings vis-à-vis the average lead and the average rate per passenger kilometer over the past two years are shown in Table 3: ~ 3 ~ Report of the Principal Director of Audit Metro Railway Kolkata 2011-12 Table 3 Year Anticipate Actual Increase in No. of Passenger Average Average earnings per d Passenger passenger passenger kilometers lead per passenger kilometers Passenger earnings Earnings (in s (in (in millions) passenger (in Paise) Col. (3) / (6) Earnings (in crore) crore) millions) (in x 1000 (in crore) kilometers) Col. (6) / (5) 1 2 3 4 5 6 7 8 2010-11 80.40 86.98 6.58 159.1 1620.96 10.19 53.66 2011-12 90.00 91.36 1.36 167.4 1729.94 10.33 52.81 From the above, it can be seen that during the year 2011-12, passenger earnings went up by 5.04 per cent over the previous year. During the year 2011-12, MR carried 8.3 million (5.22 per cent) more passengers as compared to the previous year owing to operation of an extended stretch of 8.6 km from Tollygunj to Kavi Subhas (New Garia) in October 2010.
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