THE CONTENT MAY NOT BE QUOTED AS AUTHORITY IN ANY
1
CONTENT
Chapter
Content
Page
01
Minisery of Defence & Wing
03
02
Role & Function of CGDA
25
03
Role & Function of PCDA/CDA
35
04
Official Communication
37
05
Section o0f Main Office
48
06
Accounting Procedure in DAD
82
07
Right to Information Act
110
08
Audit- General Principle & Role of DAD
117
09
Function of Different section
136
10
Function of Branch AO
151
11
Contract
176
12
IFA System
192
13
Computerisation in DAD
196
14
Joint Consultative Committee
15
Good Manner & Ettiquettee
221
.
224
16
CCS (CCA) Rules
226
17
Communication skill
234
18
Over view on MES Organization & Functioning of DAD
237
19
SOP on SBI CMP
260
20
Rajbhasha (Official Language)
267
2
MOD & ITS WING
The Government of India is responsible for ensuring the defence of India and every part
thereof. The Supreme Command of the Armed Forces vests in the President. The
responsibility
for
national
defence
rests
with
the
Cabinet.
This is discharged through the Ministry of Defence, which provides the policy framework
and wherewithal to the Armed Forces to discharge their responsibilities in the context of
the defence of the country. The Raksha Mantri (Defence Minister) is the head of the
Ministry of Defence. The principal task of the Defence Ministry is to obtain policy
directions of the Government on all defence and security related matters and
communicate them for implementation to the Services Headquarters, Inter-Services
Organisations, Production Establishments and Research and Development Organisations.
It is also required to ensure effective implementation of the Government's policy
directions and the execution of approved programmes within the allocated resources.
Ministry of Defence comprises of four Departments viz. Department of Defence (DOD),
Department of Defence Production (DDP), Department of Defence Research &
Development (DDR&D) and Department of Ex-Servicemen Welfare and also Finance
Division

Department Of Defence(DOD)

Department of Defence Production (DDP)

Department of Ex Serviceman Welfare(DESW)

Defence Research and Development Organisation (DRDO)
3
4
5
6
7
8
9
The organisational set up of the Government of India where the business of the Government
is carried out consists chiefly of the following formations:1. Ministries/Departments;
2. Attached Offices; and
3. Subordinate Offices.
(A) Department:
1. A Department is responsible for formulation of policies of the Government in relation
to business allocated to it and also for the execution and review of those policies.
2. For the efficient disposal of business allotted to it, a Department is divided into
Wings, Divisions, Branches and Sections.
3. A Department is normally headed by a Secretary to the Government of India who
acts as the administrative head of the department and principal adviser of the
Ministry on all matters of policy and administration within the department.
4. Wing: The work in a Department is normally divided into Wings with a Special
Secretary/Additional Secretary/Joint Secretary in charge of each Wing. Such a
functionary is normally vested with maximum measure of independent functioning
and responsibility in respect of the business falling within his Wing subject to,
however, the overall responsibility of the Secretary for the Administration of the
Department as a whole.
5. Division: A Wing normally comprises of a number of Divisions each functioning
under the charge of an officer of the level of Director/Joint Director/Deputy Secretary.
A Division may have several branches each under the charge of an Under Secretary
or equivalent officer.
6. Section: A Section is generally the lowest organisational unit in a Department with a
well-defined area of work. It normally consists of Assistants and Clerks supervised by
a Section Officer. Initial handling of cases (including noting and drafting) is generally
done by Assistants and Clerks who are also known as the Dealing Hands.
7. Desk Officer System: While the above represents the commonly adopted pattern of
organisation of a Department, there are certain variations, the most notable among
them being the Desk Officer system. In this system the work of a Department at the
10
lowest level is organised into distinct functional Desks each manned by two Desk
Functionaries of appropriate ranks e.g. Under Secretary or Section Officer. Each
desk functionary handles the cases himself and is provided adequate stenographic
and clerical assistance.
(B) Attached Office:
1. Where the execution of the policies of the government requires decentralization of
executive action and/or direction, a Department may have under it, executive
agencies called ‘Attached Offices’. Directorate General of Ordnance Factories is one
such important ‘Attached Office’.
2. Attached Offices are generally responsible for providing executive direction required
in the implementation of the policies laid down by the Department to which they are
attached. They also serve as repository of technical information and advise the
department on technical aspects of questions dealt with by them.
(C)
Subordinate
Office:
Subordinate Offices generally function as field establishments or as agencies responsible
for the detailed execution of the policies of Government. They function under the
direction of an Attached Office, or where the volume of executive direction involved is not
considerable, directly under a Department. In the latter case, they assist the Departments
concerned in handling technical matters in their respective fields of specialization.
Departments in the Ministry of Defence(Secretariat) and their functions:
The Ministry of Defence(Secretariat) comprises of 4 Departments viz. Department of
Defence (DOD), Department of Defence Production (DDP), Department of ExServicemen Welfare (DESW) and Department of Defence Research & Development
(DDR&D)
and
a
Finance
Division.
The Defence Secretary functions as Head of the Department of Defence and is additionally
responsible for coordinating the activities of the four Departments in the Ministry. The
principal functions of the Departments are as follows:
1. The Department of Defence deals with the three Services and with Inter-Services
Organisations. It is also responsible for the Defence Budget, establishment matters,
defence policy, matters relating to Parliament, Defence cooperation, and
coordination of the activities. It is headed by Defence Secretary who is assisted by
Director General (Acquisition), Additional Secretaries and Joint Secretaries.
2. The Department of Ex-Servicemen Welfare which is a new addition is headed
by Secretary (ESW). This Department basically deals with the formulation of policy
and planning for the Rehabilitation/ Resettlement of Ex-Service Personnel and
Pension matters of Ex-Servicemen, including pension grievances.
3. The Department of Defence Production is headed by Secretary (Defence
Production). He/She is assisted by one Additional Secretary and Joint Secretaries.
This Department deals with matters pertaining to Defence Production, indigenisation
of imported stores, equipment and spares, planning and control of departmental
production units of the Ordnance Factory Board, and of Defence Public Sector
Undertakings (DPSUs).
4. The Department of Defence Research and Development is headed by
the Secretary (Research & Development) who is also the Scientific Advisor to the
Raksha Mantri. Its function is to advise on scientific aspects of military equipment
and logistics and the formation of research, design and development plans for
equipment used by the Services.
Defence Acquisition Council: The Government has set up a Defence Acquisition Council
headed by the Raksha Mantri for decision making in regard to the totality of the new
planning process, which inter-alia involves according ‘in principle’ approval of Capital
Acquisitions in the long term perspective plan and according ‘in principle’ approval for each
11
Capital Acquisition programme. The decision flowing from the Defence Acquisition Council
are to be implemented by the following three Boards:1. Defence Procurement Board headed by the Defence Secretary;
2. Defence Production Board headed by the Secretary (Defence Production);
3. Defence Research & Development Board headed by the Secretary (Defence
Research & Development).
These Boards have been entrusted with specific functions. A Defence Acquisition Wing
headed by Director General(Acquisition) has also been created to assist the Defence
Procurement Board in its functioning.
The Acquisition Wing, within the Ministry of Defence, is a unique structure, having an
integrated set up with Officers from the Department of Defence, Finance Division and
Services Headquarters working together as a close-knit team. All matters concerning
acquisition of Capital nature will be dealt in the Acquisition Wing. It will fill the void of a
dedicated specialist organisation for Defence Procurement as pointed out by the Group of
Ministers.
The Acquisition Wing consists of four Divisions, viz., Land, Maritime and Air Force Division
dealing with Army, Navy & Air Force respectively and a Systems Division dealing with
systems having Tri-Services applicability. Each of the Divisions has a Joint Secretary
designated as Acquisition Manager, an Additional FA (Joint Secretary level officer)
designated as Finance Manager and a Service Officer of ‘Two Star ’ rank designated as
Technical Manager. The Acquisition Wing with its components of Civil and Defence Service
Officers working as a team provides the necessary synergy to the entire acquisition process.
The new structures are intended to facilitate expeditious decision-making in an integrated
manner in areas relating to acquisitions for the three Services while at the same time
imparting a higher degree of transparency and cost effectiveness to the process of
acquisition of equipment, weapon and weapon systems.
The Finance Division of the Ministry of Defence is headed by a Financial Adviser. He is
tasked with exercising financial control over proposals involving expenditure from the
Defence Budget, and with the responsibility for internal audit and accounting of Defence
expenditure. In the latter tasks, he is assisted by the Controller General of Defence
Accounts (CGDA).
Services
Headquarters
and
Inter-Service
Organisations:
In order to execute its assigned functions, the Ministry of Defence is assisted by the three
Services Headquarters and a number of Inter-Service Organisations (ISOs). The three
Services Headquarters viz. the Army Headquarters, the Naval Headquarters and the Air
Headquarters function under the Chief of the Army Staff (COAS), the Chief of the Naval
Staff (CNS) and the Chief of the Air Staff (CAS) respectively. They are assisted by their
Principal Staff Officers(PSOs). The Inter-Service Organisations are responsible for carrying
out the tasks relating to the common needs of the three Services, like medical care, public
relations and personnel management of the civilians in the Defence Headquarters. Some
Organisations also provide technical assistance to the Department of Defence Production.
All these organisations function directly under the Ministry of Defence.
Integrated
Headquarters
of
Ministry
of
Defence.
Integrated Headquarters of Ministry of Defence comprising Army Headquarters, Naval
Headquarters, Air Headquarters and Defence Staff Headquarters are associated in the
formulation of policies in relation to matters concerning the Defence of India and Armed
Forces of the Union. They would be responsible for providing executive direction required in
the implementation of policies laid down by the Ministry of Defence. They shall exercise
delegated administrative and financial powers. The role and function of the Services
12
Headquarters ‘now’ designated as Integrated Headquarters in all other respects remains
unchanged.
ORGANISATION AND FUNCTIONS OF THE FINANCE DIVISION OF
MINISTRY OF DEFENCE
Revenue
SDF/FA(DS)
5 Addl FAs & Jt. Secys
CAPITAL
Financial Adviser(Acquisition)
& Addl. Secretary
3 Finance Managers
Directors/DFAs
Directors/DFAs
AFAs
There is a separate Finance Division of the Raksha Mantralay (Ministry of Defence) for
dealing with all defense matters having a financial bearing. The head of this Division is the
Financial Adviser. In order to bring about the closer association between the Administrative
Ministries and their Financial Advisers, and to enable the latter to play a more effective and
constructive role, Government had introduced in October 1975 the Scheme of Integrated
Financial Adviser under which the Financial Advisers become a part and parcel of the
Administrative Ministry concerned and are therefore, more closely associated with
formulation and implementation of proposals. In accordance with that policy, the scheme of
Integrated Financial Adviser was introduced in the Department of Defence Supplies and
Defence Production (including Research and Development Organization and Director
General of Quality Assurance) in May 1976.
13
With a view to ensuring greater efficiency in administration and quicker disposal of the
cases, Ministry of Defence has been delegated enhanced financial powers in regard to
expenditure met from the Defence Service Estimates. In matters within the delegated
powers of the Ministry of Defence, Financial Adviser (Defence Services) or his officers are to
be consulted before exercise of financial powers. In such cases, it is open to the Defence
Secretary to over-rule the advice of the Financial Adviser (Defence Services) by an order in
writing, but it will also be open for the Financial Adviser (Defence Services) to request that
the matter be placed before the Raksha Mantri. In all matters beyond the powers delegated
to the Ministry, Financial Adviser (Defence Services) and his officers function as Associate
Finance and are responsible to have the right of access to the Ministry of Finance and the
Finance Minister through Secretary (Expenditure). If any important change in the duties and
functions of the Financial Adviser (Defence Services) or the Defence Accounts Department
is contemplated, approval of the Finance Ministry is necessary.
DRDO
Defence Research & Development Organization (DRDO) works under Department of
Defence Research and Development of Ministry of Defence. DRDO dedicatedly working
towards enhancing self-reliance in Defence Systems and undertakes design & development
leading to production of world class weapon systems and equipment in accordance with the
expressed needs and the qualitative requirements laid down by the three services.
DRDO is working in various areas of military technology which include aeronautics,
armaments, combat vehicles, electronics, instrumentation engineering systems, missiles,
materials, naval systems, advanced computing, simulation and life sciences. DRDO while
striving to meet the Cutting edge weapons technology requirements provides ample spinoff
benefits to the society at large thereby contributing to the nation buliding.
Vision
Make India prosperous by establishing world class science and technology base and
provide our Defence Services decisive edge by equipping them with internationally
competitive
systems
and
solutions.
Mission & Activities






Design, develop and lead to production state-of-the-art sensors, weapon systems,
platforms and allied equipment for our Defence Services.
Provide technological solutions to the Services to optimise combat effectiveness and
to promote well-being of the troops.
Develop infrastructure and committed quality manpower and build strong indigenous
technology base.
DRDO is works in various areas of military technology which include aeronautics,
armaments, combat vehicles, electronics, instrumentation engineering systems,
missiles, materials, naval systems, advanced computing, simulation and life sciences
DRDO is a network of 52 laboratories Presently, the Organisation is backed by over
5,000 scientists and about 30,000 other scientific, technical and supporting
personnel.
Several major projects for the development of missiles, armaments, light combat
aircrafts, radars, electronic warfare systems etc are on hand and significant
achievements have already been made in several such technologies.
14

DRDO labs are engaged in developing defence technologies covering various
disciplines:














aeronautics,
armaments,
electronics,
combat vehicles,
engineering systems,
instrumentation,
missiles,
advanced computing and simulation,
special materials,
naval systems,
life sciences,
training,
information systems
agriculture
LIST OF ESTABLISHMENT & LABORATARY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Aeronautical Development Establishment (ADE), Bangalore
Advanced Numerical Research & Analysis Group (ANURAG), Hyderabad
Aerial Delivery Research & Development Establishment (ADRDE), Agra
Armament Research & Development Establishment (ARDE), Pune
Center for Artificial Intelligence & Robotics (CAIR), Bangalore
Center for Fire,Explosive and Environment Safety (CFEES)
Center for Military Airworthiness & Certification (CEMILAC), Bangalore
Centre for Air Borne Systems (CABS), Bangalore
Combat Vehicles Research & Development Estt. (CVRDE), Chennai
Defence Institute of Bio-Energy Research (DIBER), Haldwani
Defence Avionics Research Establishment (DARE), Bangalore
Defence Bio-Engineering & Electro Medical Laboratory (DEBEL), Bangalore
Defence Electronics Application Laboratory (DEAL), Dehradun
Defence Electronics Research Laboratory (DLRL), Hyderabad
Defence Food Research Laboratory (DFRL), Mysore
Defence Institute of Advanced Technology (DIAT), Deemed University, Pune
Defence Institute of High Altitude Research (DIHAR)
Defence Institute of Physiology & Allied Sciences (DIPAS), Delhi
Defence Institute of Psychological Research (DIPR), Delhi
Defence Laboratory (DLJ), Jodhpur
Defence Materials & Stores Research & Development Establishment
(DMSRDE), Kanpur
Defence Metallurgical Research Laboratory (DMRL), Hyderabad
Defence Research & Development Laboratory (DRDL), Hyderabad
Defence Research & Development Establishment (DRDE), Gwalior
Defence Research Laboratory (DRL), Tejpur
Defence Scientific Information & Documentation Centre (DESIDOC), Delhi
Defence Terrain Research Laboratory (DTRL), Delhi
Electronics & Radar Development Establishment (LRDE), Bangalore
Gas Turbine Research Establishment (GTRE), Bangalore
High Energy Materials Research Laboratory (HEMRL), Pune
Institute of Nuclear Medicine & Allied Sciences (INMAS), Delhi
15
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
Institute of Systems Studies & Analysis (ISSA), Delhi
Institute of Technology Management (ITM), Mussorie
Instruments Research & Development Establishment (IRDE), Dehradun
Integrated Test Range (ITR), Balasore
Laser Science & Technology Centre (LASTEC), Delhi
Microwave Tube Research & Development Center (MTRDC), Bangalore
Naval Materials Research Laboratory (NMRL), Ambernath
Naval Physical & Oceanographic Laboratory (NPOL), Cochin
Naval Science & Technological Laboratory (NSTL), Vishakapatnam
Proof & Experimental Establishment (PXE), Balasore
Research & Development Establishment (R&DE), Pune
Research Center Imarat (RCI), Hyderabad
Scientific Analysis Group (SAG), Delhi
Snow & Avalanche Study Estt (SASE), Chandigarh
Solid State Physics Laboratory (SSPL), Delhi
Terminal Ballistics Research Laboratory( TBRL),Chandigarh
Vehicle Research & Development Establishment (VRDE), Ahmednagar
16
Naval Organisation
Republic of India
President
(Supreme Commander of Armed Forces of India)
Defence Minister
(Cabinet Rank Minister from the Council of Ministers of Government of India)
Indian Navy
(One of the Three Wings of Armed Forces of Indian Union)
Chief of the Naval Staff
(An Admiral Rank Officer)
Chief of Naval Staff
At IHQ MOD (N) Level
At Operational Command Level
Vice Chief of Naval Staff
Flag Officer Commanding in Chief, Western Naval Command
Deputy Chief of Naval Staff
Flag Officer Commanding in Chief, Eastern Naval Command
Chief of Personnel
Flag Officer Commanding in Chief, Southern Naval Command
Chief of Materiel
Other Independent Authorities
Other Independent Authorities
17
Naval Authorities under Administrative Contr ol of Flag Officer Commanding in
Chiefs
Chief of Naval Staff
Flag Officer Commanding
Flag Officer Commanding
Flag Officer Commanding
In Chief Western Naval
In Chief Eastern Naval
In Chief Southern Naval
Command
Command
Command
COMMANDANT INDIAN
FOCWF
FOCEF
FOMAG
ASD (VISAKHAPATNAM)
FOST
COMCOS (WEST)
COMCOS (EAST)
ASY (KOCHI)
FOGA
NAVAL ACADEMY
NOIC (ANDHRA
PRADESH)
FONA
NOIC (TAMIL NADU)
FODAG
NOIC (ORISSA)
FOK
NOIC (WEST BENGAL)
ASD (MUMBAI)
SHORE
ESTABLISHMENTS
NOIC (MAHARASTRA)
NOIC (GUJRAT)
NOIC (KARNATAKA)
18
NOIC (KERALA)
NOIC (LAKSHADWEEP)
SHORE
ESTABLISHMENTS
TRAINING SCHOOLS /
ESTABLISHMENTS
NOIC (GOA)
SHORE
ESTABLISHMENTS
Abbreviations in Use
Abbreviations
Meaning
PSO
Principal Staff Officer
FOCWF
Flag Officer Commanding Western Fleet
FOCEF
Flag Officer Commanding Eastern Fleet
FOMAG
Flag Officer Maharashtra and Gujarat Area
COMCOS
Commodore Commanding Submarines
FOGA
Flag Officer Goa Area
FONA
Flag Officer Naval Aviation
FODAG
Flag Officer Offshore Defence Advisory Group
FOK
Flag Officer Karnataka Naval Area
ASD
Admiral Superintendent Dockyard
NOIC
Naval Officer In-Charge
FOST
Flag Officer Sea Training
ASY
Admiral Superintendent Yards
Operational Commands of Indian Navy
Commands
Mumbai
Visakhapatnam
Kochi
Western Naval
Command
Eastern Naval Command
Southern Naval
Command
19
Headed By
Mumbai
Visakhapatnam
Kochi
Flag Officer
Commanding in Chief,
WNC
Flag Officer
Commanding in Chief,
ENC
Flag Officer Commanding
in Chief, SNC
Units of WNC
Units of ENC
Units of SNC
Command
Authorities & Units
Flag Officers - At the Helm
i.
Integrated Headquarters MoD (Navy), New Delhi
o
Chief of the Naval Staff (CNS)
o
Vice Chief of Naval Staff (VCNS)
Principal Staff Officers (PSOs)
o
Deputy Chief of Naval Staff (DCNS)
o
Chief of Personnel (COP)
o
Chief of Materiel (COM)
Director Generals
o
ii.
Director General Medical Services DGMS (N)
Mumbai
o
iii.
Flag Officer Commanding in Chief, Western Naval Command
Visakhapatnam
o
iv.
Flag Officer Commanding in Chief, Eastern Naval Command
Kochi
o
Flag Officer Commanding in Chief, Southern Naval Command
20
INDIAN AIR FORCE
IAF-HQrs
IAF-Commands
 Western Air Command (New Delhi)
 Eastern Air Command (Shillong)
 Central Air Command (Allahabad)
 South Western Air Command (Gandhinagar)
 Southern Air Command (Thiruvananthapuram)
 Maintenance Command (Nagpur)
 Training Command (Bangalore)
21
IAF-Command (Orgn)
IAF-Maintenance Command
22
RANKS OF OFFICER IN THREE SERVICES
ARMY
NAVY
General
Lt-General
Maj-General
Brigadier
Colonel
Lt-Colonel
Major
Captain
Lt
AIRFORCE
 Admiral
Air Chief Marshal,
 Vice-Admiral
Air Marshal,
 Rear Admiral
Air Vice Marshal,
 Commodore
Commodore
 Captain
Group Captain
 Commander
Wing Commander,
 Lt-Commander
Squadron Leader,
 Lieutenant
Flight Lieutenant,
Flying Officer &
Pilot Officer.
ORDNANCE FACTORY BOARD
Introduction
Indian Ordnance Factories is a giant industrial setup which functions under the Department
of Defence Production of the Ministry of Defence. Indian Ordnance Factories,
headquartered at Kolkata, is a conglomerate of 41 Factories, 9 Training Institutes, 3
Regional Marketing Centres and 4 Regional Controller of Safety.
Today OFB along with its 41 factories spread over India provide








a broad and versatile production base with multi-technology capabilities
state of the art manufacturing facilities
large reservoir of skilled and professionally qualified manpower and managerial
personnel
strict adherence to quality standard (all the units are ISO-9000 certified)
original as well as adaptive research & development to make need based refinement
and modifications
project engineering capability
a strong base for industrial training facilities
ready market access due to convenient location
Geographical Spread
There are 41 Ordnance Factories geographically distributed all over the country at 24
different locations. A visual idea of how our factories and headquarters are distributed can
be had from our location map.
23
Name of State/ Union Territory
Number of factories
Maharashtra
10
Uttar Pradesh
8
Madhya Pradesh
6
Tamil Nadu
6
West Bengal
4
Uttaranchal
2
Andhra Pradesh
1
Chandigarh
1
Orissa
1
Ordnance Factories are departmental factories of Ministry of Defence, Government of India.
Hence, we primarily produce defence goods for the Armed Forces, i.e. for internal
consumption within the MOD. However, we also produce products for sale to various
customers within and outside India. Sale of civilian products within India is called civil trade.
Civil Trade
We have a large number of customers in the civil sector-central/ state government
departments, PSUs, private companies and individuals, etc.-who purchase industrial
chemicals, explosives, arms and ammunition, brass ingots, aluminium alloy products for
aircrafts, steel castings and forgings, vehicles, clothing and leather goods, cables and optoelectronic instruments.
Exports
Arms and Ammunition, Weapon Spares, Chemicals & Explosives, Parachutes, Leather and
Clothing items are being exported to more than 30 countries world-wide e.g. Thailand,
Malaysia, Indonesia, Sri Lanka, Bangladesh, Germany, Belgium, Turkey, Egypt, Oman,
Israel, Kenya, Nigeria, Botswana, Chile, Surinam and USA.
Constitution of the Board
The Apex Board is headed by Director General Ordnance Factories (DGOF) as Chairman
and has 9 Members in the rank of Additional DGOF. Ordnance Factories are divided into 5
operating divisions, depending upon the type of the main products/technologies employed.
These are :
1.
2.
3.
4.
5.
Ammunition and Explosives (A&E)
Weapons, Vehicles & Equipments (WV&E)
Materials and Components (M&C)
Armoured Vehicle (AV)
Ordnance Equipment Group of Factories (OEF)
Each of the above group of factories is headed by a Member/Additional DGOF. The four
remaining Members are responsible for staff functions, viz Personnel (Per), Finance(Fin),
Planning & Material Management (P&MM), Technical Services (TS) and they operate from
Kolkata.
24
Organisation Chart
DGOF & Chairman, OFB
OPERATING DIVISION MEMBER
STAFF FUNCTION MEMBER
MEMBER/ A&E
MEMBER/PER
MEMBER/WV&E
MEMBER/TS & ENGG
MEMBER/M&C & ICE
MEMBER/P&MM
ADDL. DGQA/ OEF HQ
MEMBER/FINANCE
ADDL. DGOF/AVHQ
25
CHAPTER – 2
ROLE & FUNCTION OF CGDA
The Controller General of Defence Accounts (CGDA) is the Head of the Department and he
functions on behalf of the Financial Adviser (Defence Services), as the Chief Authority in all
matters affecting internal audit and accounting in respect of expenditure pertaining to the
Defence Services and other Defence related Organizations such as the Border Roads, the
Coast Guard and the Canteen Stores Department.
DUTIES-- CONTROLLER GENERAL OF DEFENCE ACCOUNTS
1.
The C.G.D.A. is responsible for the administration and efficient working of the
Department.
2.
He/ She may on his/her own motion or on a reference being made to him/her by the
Government of India or the Services Headquarters, review, any audit decision of any
audit officer of the Defence Accounts Department and if he/she thinks fit, over-rule
it.
3.
The Controller General of Defence Accounts is incharge of the Headquarters Office of
the Defence Accounts Department. He/ She issues necessary instructions to Principal
Controllers/Controllers of Defence Accounts in matters relating to maintenance and
internal audit of accounts, accounts and audit procedure, classification of receipt and
charges, etc., either on his/her own responsibility or after taking orders of the
Government of India, if necessary.
4.
He/She gives audit rulings, in consultation with the Ministry of Defence (Finance)
where necessary, on doubtful points arising from internal audit and referred to
him/her by the Principal Controllers/Controllers of Defence Accounts. These audit
rulings refer to the internal audit exercised by the Defence Accounts Department and
not to statutory audit exercised by the D.G.A.D.S. on behalf of the Comptroller and
Auditor General.
5.
He/She assists the Government of India with advice on all questions of audit and
accounts procedure relating to Defence expenditure which may be referred to
him/her.
6.
He/She maintains up to date and relevant information relating to personnel
management, assesses the requirements of officers and establishment for the
wholeDepartment and posts them to the various offices according to their
requirements.
7.
He/She also sends at his/her discretion officers and staff on deputation to
theMinistries and other Government Departments and Public Sector Undertakings.
8.
He/She co-ordinates and pursues with the Government the projects of office
andresidential accommodation required by the Department at various stations.
9.
He/Shecoordinates the funds requirements of various Controllers' organisations,
preparesbudget for the Department, makes budgetary allocation of funds to the
Controllersand watches utilization.
10.
He/She conducts regular inspection of all offices of the DADincluding his own
Headquarters office.
11.
He/She prepares an Annual Consolidated Balanced Accounts of Defence
ServicesReceipts and Charges and sends them to the Director General of Audit,
DefenceServices, who, after check, endorses his audit certificate thereon and passes
it on tothe Comptroller and Auditor General.
12.
He/She prepares certain subsidiary statements in connection with the
AppropriationAccounts as prescribed and submits them to the FinancialAdviser,
Defence Services.
26
13.
14.
15.
16.
He/She also renders annually to the Financial Adviser,Defence Services, an Audit
certificate on the accounts of the Defence Services.
He/She is the Principal Accounting Officer for the Civil Estimates of the Ministry
ofDefence. He prepares the Appropriation Accounts of the above Estimates and
sendsthe same to the Financial Adviser (Defence Services) and the Defence
Secretary foronward transmission to the Controller General of Accounts and
Accountant General(Central Revenues).
He/She also prepares the statement of central transactions in respect of
CivilEstimates and forward it to the Controller General of Accounts.
He/She prepares theportion of the combined Finance and Revenue Accounts
pertaining to the DefenceServices and submits it to the Comptroller and Auditor
General for incorporation inthe combined Finance and Revenue Accounts of the
Central and State Governmentsin India.
RECRUITMENT, APPOINTMENT, PROMOTION & CONFIRMATION IN
DAD
Employees serve in the Department categorized as Group- A, Group- B & Group-C. the posts
of different categories are filled up by recruitment and promotion. Group-A & Group B posts
are gazetted posts and Group-C posts are non- gazetted posts.
Post of
GROUP – A SERVICE.
CGDA, ADDL. CGDA,JT.CGDA, PCDA, DCGDA, CDA,
ADDL.CDA, JCDA, DCDA, ACGDA,ACDA
The officers are known as
IDAS officer in the
departments
Post of
GROUP – B SERVICE
Senior Accounts Officer; Accounts Officers and
Assistant Accounts Officers; Hindi officer and Senior
Personal Assistant.
Section Officer (Accounts), Senior Auditors, Auditors,
Clerks, Typists, D.E.Os. and Stenographers.
GROUP – C SERVICE
The recruitment procedure is as under:1.
2.
Recruitment to the IDAS is made partly by direct appointment and partly by
promotion of Senior Accounts Officer (Group 'B'). The rules governing method etc.,
of recruitment and further promotion within the IDAS are regulated as per provisions
contained in the IDAS Recruitment Rules, 2000, as amended from time to time.An
officer appointed to the IDAS by direct recruitment shall be on initial probation for a
period of two years from the date of his appointment, on expiry of which the
suitability for confirmation of the Officer directly recruited to the I.D.A.S will be
determined by the D.P.C., duly constituted in accordance with IDAS rules as
amended from time to time, based on the probation reports and passing of the
prescribed departmental examination.
Accounts officers are recruited in accordance with Defence Accounts Department
(Accounts Officer) Recruitment (Amendment) Rules 2011 by selection from AAOs
with two years regular Service in the grade. The Selection is made on the
27
3
4.
5.
6.
7.
8.
9.
recommendations of Departmental Promotion Committee. The authorised posts
comprise the combined strength of posts in the grades of Accounts Officer and Sr.
Accounts Officer, out of which a maximum of 80% may be operated in the grade of
Sr. Accounts Officer.
The normal method of appointment to the subordinate Accounts Service Section
Officer (Accounts) grade will be by promotion, as vacancies occur, of senior
Auditors/Auditors/Clerks/Typists/D.E.Os/Stenographers/ Hindi Translators and
Librarians who have passed the Subordinate Accounts Service Examination and who
have been adjudged fit by the Local Promotion Committee. Other qualifications being
equal, such individuals will ordinarily be selected for promotion in the order of their
seniority. The direct recruitment of Subordinate Accounts Service Apprentices
will be made on the basis of an Entrance Examination conducted by an authority
specified by the Controller General of Defence Accounts. The Apprentices directly
recruited to the Subordinate Accounts Service will be required to pass the
Departmental Subordinate Accounts Service Examination. Further detailed conditions
are enumerated in Recruitment Rules.
Appointment to the post of Hindi Officers (partly by direct recruitment and partly
by promotion/deputation) for the department is done by the Union Public Service
Commission.
Appointment to Senior Hindi Translator, Group B, Non- Gazetted (Partly by
promotion and partly by transfer on deputation) is made from Junior Hindi
Translators of the Department with a minimum of 5 year's service in the grade on
the basis of seniority cum fitness adjudicated by the duly constituted DPC.
Appointment to Junior Hindi Translator is by direct recruitment. However,
vacancies caused by the incumbent being away on deputation or long illness or
study leave or under other circumstances for duration on one year or more may be
filled on deputation basis from offices of central government.
The Cadre of Senior Auditors is fixed at maximum of 80% of the strength of the
Auditors authorized for the department from time to time. The selection would be
based on seniority-cum-fitness subject to rejection of unfit cases. The
recommendation of DPC will be put up to the PCsDA/CsDA for their acceptance as
the appointing Authority. Before release of promotion, such proposal will be
submitted to the CGDA for approval in the capacity of the Cadre Controlling
Authority.
Direct recruitment of Auditors in group “C” will bemade on the basis of Examination
conducted by Staff Selection Commission or bypromotion or by deputation or
absorption. 50%1 of the vacancies in the Auditors' grade are filledby promotion
ofClerksaccording to seniority subject to fitness. Such promotions are made by the
C.G.D.A.on All India basis on the recommendations of the P.Cs.D.A./ Cs.D.A.
Recruitment to the Clerical cadre for the Defence Accounts Department is also
done by way of direct Recruitment by the Staff Selection Commission or by way of
promotion as per recruitment Rules.
CONFIRMATION
(i) Confirmation will be made only once in the service of an official which will be in the entry
grade.
(ii) Confirmation is delinked from the availability of permanent vacancy in the grade. In
other words, an officer who has successfully completed the probation may be considered for
confirmation.
(iii)The case will be placed before the DPC (for confirmation.)& a specific order or
confirmation will be issued when the case is cleared from all angles
NOTE- If a Government servant is appointed to another post by direct
recruitment inthesame Department or a different department, it will be
necessary to consider him/herfor confirmation in the new post in which he/she
28
has been appointed by directrecruitment irrespective of the fact the officer was
holding the earlier post on asubstantive basis
PAY & DIFFERENT ALLOWANCES DAD
Details showing Pay Scales/Grade Pay applicable to various categories of
officers
& staff of Defence Accounts Department
Designation
Pay Band
Grade Pay
CGDA
Rs. 80000/-(Fixed)
(Apex Scale)
Addl. CGDA
Rs. 75500-80000/(HAG+ Scale)
PCDA
Rs. 67000-79000/(HAG Scale)
Sr. Administrative Grade
Rs. 37400-67000/-(PB - 4)
10000
Jr. Administrative Grade
Rs. 37400-67000/-(PB -4)
8700
Jr. Administrative Grade
Rs. 15600-39100/- (PB-3)
7600
Sr. Time Scale
Rs. 15600-39100/- (PB-3)
6600
Jr. Time Scale
Rs. 15600-39100/- (PB-3)
5400
PPS
Rs. 15600-39100/- (PB-3)
6600
Hindi Officer
Rs. 15600-39100/- (PB-3)
5400
Sr. Accounts Officer
Rs. 15600-39100/- (PB-3)
5400
Accounts Officer
Rs. 9300-34800/- (PB-2)
5400
Asstt. Accounts Officer
Rs. 9300-34800/- (PB-2)
4800
Supervisor(A/Cs)
Rs. 9300-34800/- (PB-2)
4800
Sr. Hindi Translator
Rs. 9300-34800/- (PB-2)
4600
Sr. Auditor
Rs. 9300-34800/- (PB-2)
4200
(Non Functional Selection
Grade)
29
Auditor
Rs. 5200-20200/- (PB-1)
2800
Clerks
Rs. 5200-20200/- (PB-1)
1900
MTS
Rs. 5200-20200/- (PB-1)
1800
Pay means the amount drawn monthly by a Govt. servant as the pay (pay band pay
plus grade pay) which has been sanctioned for a post held by him substantively or
in an officiating capacity. This also includes the NPA sanctioned to the medical
officers.
The pay of a Govt. servant shall not be so increased as to exceed the pay
sanctioned for his post without the sanctioned of an authority competent to create a
post in the same cadre on a rate of pay equal to his pay when increased.
On appointment to a post through recruitment, the employee shall pay the minimum
of the pay sanctioned for the post. Subsequently on completion of one year of
qualifying service, he/ she will be granted 3% of increase in his/ her pay as service
increment. This 3% is on his (PBP+GP), rounded to the nearest multiple of 10.The
sum so arrived at will be added to the PBP without making any change in his GP.
On promotion to a higher post – one increment equal to 3%of the sum of the pay in
the PBP and existing GP will be computed and rounded off to the next multiple of
10. This will be added to the existing PBP. The GP corresponding to the promotion
post will be granted in addition to this pay in the PBP. If the pay in the PBP after
adding the increment is less than the minimum of the higher pay band to which
promotion is taking place, pay in the pay band will be stepped to such minimum.
Allowance granted either to meet personal expenditure necessitated by the special
circumstances in which duty is performed or while the employee asks to performed
any important and responsible nature of the duties.
Some of the allowances as are under:=
DEARNESS ALLOWANCE is admissible to the officers and staff at the current
rates as sanctioned by the Central Government for their employees from time to
time.
HOUSE RENT ALLOWANCE admissible if no govt accommodation is provided to
an employee on his posting to a station. Other condition for grants of HRA is
regulated by
the orders as received from Govt. from time to time.
SPECIAL COMPENSATORY BAD CLIMATE/HILL AREA ALLOWANCE
Special Compensatory (Hill Areas) Allowance is admissible to employees
posted in Hill stations situated at a height of 1000 metres or more above the sea
level. The allowance is sanctioned by the Administrative Ministries/Departments
after ascertaining the height of the concerned hill stations from Survey of India.
Bad Climate Allowance is granted to employees posted in bad climate
areas/unhealthy locality/areas declared by the concerned States.
Bad Climate Allowance ,Hill Area Allowance, Special Compensatory
(RemoteLocality) Allowance, Tribal Area Allowance, Special (Duty)
Allowance, Island Special(Duty) Allowance, Sunderban Allowance, Hard
30
Area Allowance are admissible to eligible employees as per the rates and
conditions of Govt orders received from time to time.
CHILDREN'S EDUCATION ALLOWANCEcan be availed by the Govt. servant for
the two eldest surviving children if he has more than two surviving school going
children. Reimbursement will be applicable for expenditure on the education of
school going children only from classes nursery to twelfth standard. The amount
reimbursable is as per the Govt. order from time to time.
The following allowances are admissible to the employees as per the rates and
conditions of Govt orders received from time to time.
1) Washing Allowance
2) Training Allowance
3) Cycle Allowance
4) Child Care Allowance for Women with Disabilities (w e.f. 1.9.2008)
5) Constant Attendant Allowance (CAA) (w e.f 1.1.2006)
6) Sumptuary Allowance
7) Night Duty Allowance
8) Split Duty Allowance
9) Caretaking Allowance
LEAVE & ATTENDANCE
Leave cannot be claimed as a right and will not be granted unless arrangements can
be made for the work of the applicant during his/her absence. Every member who
applies for leave will ascertain before absenting himself that the leave has been
sanctioned, and on no account should he proceed on leave in anticipation of
sanction. Members already on leave and desirous of obtaining an extension must
submit their applications in sufficient time for them to be considered and the result
communicated before the expiry of the original leave, so as to permit their joining
by the due date if the application is refused. Failure to comply with these
instructions will render a member liable to be treated as absent without leave.
There is no objection to an officer or other member of the office establishment
leaving the station after office hours, provided that it does not entail absence from
office on the next succeeding working day. On no account should an officer or other
member of the establishment, without obtaining prior permission in writing (in the
case of an officer from the Principal Controller/Controller or an officer acting for
him/her and in the case of Assistant Accounts Officer/ Section Officer
(Accounts)/Senior Auditor/Auditor/Clerk/ MTS from the officer under whom he is
directly serving), proceed to an outstation when there is an probability or likelihood
that by so doing he/she will be unable to return to duty at the time, the office opens
on the next working day.
Types of leave admissible to an employee is as under:NATURE OF LEAVE
DAYS ADDMISSIBLE
EL
Credit will be afforded in advance at a uniform rate of 15
days on the 1st of January & 1st of July every year. The
unavailed days in a particular half year will be added to the
credit of the subsequent half year. Thus the accumulation
31
allowed up to 300 days. Further credit of 15 days in a
particular half year will be kept separately & set off against
the EL availed during that half year. If the leave availed in
that half year is less than 15 days then the balance will
lapsed.
HPL
Credit will be afforded in advance at a uniform rate of 10
days on the 1st of January & 1st of July every year. There is
no limit on the credit like EL.
COMMUTED LEAVE
Admissible to the employees against the balance of HPL on
production of MC & FC.
LEAVE NOT DUE
(LND)
Can be granted to permanent official with no half pay leave
at credit.
EXTRA ORDINARY
LEAVE (EOL)
Granted to a Govt. servant when no leave is admissible &
when leave is admissible, but the employee applies in
writing for the same.
MATERNITY LEAVE
Admissible to female employees during pregnancy for 180
days on two occasion in the entire service period & for
Miscarriage/ Abortion (induced or otherwise) for 45 days in
the entire service period . Application should be supported
by a certificate from AMA/RMP.
PATERNITY LEAVE
Admissible to male Govt. employee with less than 02
surviving children for 15 days during the confinement
period of wife or after, up to 06 months from the delivery
of child.
CCHILD CARE LEAVE
Granted for a maximum period of 730 days during the
entire service period for taking care of up to 02 children
during the period of their need. Admissible for 03 spell in a
year having no less than 15 days in a spell. Not admissible
during the period of probations.
Casual leave
Normally 08 days in a calendar year
SPECIAL CASUAL
LEAVE
Sanctioned by competent authority on special
circumstances as provided under extant rules.
HOURS OF ATTENDANCE
The normal hours of attendance at office are from 9.00 AM to 5.30 PM or 9.30 AM
to 6 PM on all working days (excluding Saturdays) with an interval from 1.00 PM to
32
1.30 or 1.30 PM to 2.00 PM for tiffin and relaxation. The office will remain closed on
all Saturdays.
Principal Controllers/Controllers may at their discretion authorise an earlier opening
hour/and or adjustment of tiffin hours as a local arrangement but in no case will the
total working hours be reduced below 40 hours on an average in a week.
Unless half a day's casual leave has been sanctioned in advance for the forenoon
session every member of the establishment is expected to be not merely in office
but at work in his/her seat at the commencement of the office hours, viz., 9.00
A.M./9.30 A.M.
An attendance register will be maintained on form S-37 in each Section, LAO'S
office, A.L.A.O. Groups etc. The following procedure should be followed in marking
the attendance in the register.
(a) At 9-00 A.M./9-30 A.M. (or other official hours of opening the office), the
attendance register will be marked as under:Initial - for those present.
"CL/EL" - for those granted casual leave, earned leave etc.
“RH” - for those permitted to avail of restricted holiday.
"HL" - for those granted half a day's casual leave for the forenoon session
“CCL/PL” - for those granted child care leave/Paternity Leave
"L" - (in red ink) for others not present.
(b) The attendance register will be initialed by the A.A.O./S.O. (A) of the Section
and submitted immediately to the Accounts Officer/Senior Accounts Officer/ACDA inCharge Section by 9.05 A.M./9.35 A.M. (i.e., within five minutes of the official hour
of opening the office).
(c) At 10-00 A.M./10-30 A.M. (i.e. one hour after the official hour of opening the
office)
in respect of persons marked "L", who have not arrived till then, the symbol "A",
(inred ink) will be added after "L".
(d) All persons attending office late will report to the Assistant Accounts
Officer/Section Officer (A) immediately on arrival and have their time of arrival noted
in the attendance register. They must also submit an application stating the reasons
for late attendance.
At the close of a month, a statement of late attendance will be prepared by the
Assistant Accounts Officer/Section Officer (Accounts) of the Section and submitted
to the Accounts Officer/Senior Accounts Officer/ACDA in-Charge of the Section by
the 4th of the month following that to which it relates, for orders, duly supported by
the applications from the individual concerned.
Late attendance upto an hour at a time and on not more than two
occasions in amonth may be condoned by the Group Officers of the
Sections at their discretion inexceptional cases after satisfying themselves
that it was for genuine andunavoidable reasons.
For each late attendance not so condoned, half-a-day's CasualLeave Will
be debited to the Casual Leave account of the individual. In case where
agovernment servant wishes to leave early, however, it will be necessary
for him toobtain half-a-day's casual leave (in the afternoon) and he should
not be allowed toleave the office early with permission.If forfeiture of half
a day's casual leave for each occasion of late attendance not condoned
33
does not ensure punctual attendance, suitable disciplinary action may be
taken in addition.
CONDUCT AND DISCIPLINE
For purposes of conduct and discipline, the members of the Department are
governed by the Central Civil Services (Conduct) Rules, 1964, Central Civil Services
(Classification, Control and Appeal) Rules 1965 and other orders and instructions
issued from time to time. Violation/disregard of these rules/orders will render them
liable for disciplinary action. Nature of action & its procedure will be dealt with
separately in details. However, what a Govt. servant is expected to follow in his day
to day discharge of duties is enumerated below.
1.
2.
3.
4.
5.
6.
7.
8.
No member of the establishment below the rank of a Gazetted Officer is to
receive any strangers in the rooms in which the business of the office is
carried on, nor he is permitted to give any official information to any one
calling on a Gazetted Officer during the latter's absence from his room.
However, of outstation offices of a Principal Controller/Controller of Defence
Accounts, the senior member present may receive bonafide persons calling
on official business during the absence of the Gazetted Officer-in- charge of
the office. Contractors/members of the public who visit the office in
connection with the payment of their bills, complaints etc., are not
allowed to see any member of the department except the "Officerin-Charge, Complaints Cell" appointed for each Principal
Controller's/ Controller's office for dealing with public grievances.
Access to official records is permitted to none but those entrusted with the
duties of the office, and they are not to be made public nor communicated to
the press.
No Government Servant shall, except in accordance with any general or
specialorder of the Government, communicate directly or indirectly, any
official document or any part thereofor information to any Government
servant or any other person to whom he is notauthorised to communicate
such documents or information.
No official documents/papers or publications may be taken out of the office
withoutthe written permission of the Accounts Officer/Senior Accounts
Officer/A.C.D.A. inchargeSection.
Except with the permission of Principal Controller/ Controller, members of
theestablishment are prohibited from applying for employment elsewhere and
they are permitted to have any other occupation which may divert their
attention from their official duties.
Ordinarily there cannot be any objection to the pursuit of knowledge by
Government servants in their leisure hours by joining educational institutions
or courses of studies for University Degrees, subject to the condition thatsuch
pursuit does not in any way detract from their efficiency. Prior permission in
thisregard may be sought for and granted by the P.Cs.D.A./CsDA. to the staff
servingunder them is required. A condition will be attached to the above
permission that the same isliable to be withdrawn at any moment without
assigning any reason
Canvassing by a member of the department in support of the business
orinsurance agency, commission agency etc., owned or managed by his wife
34
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
or anyother member of his family shall be deemed to be a breach of the
conduct ruleswhere such an action on his part has not the requisite sanction.
All members of the establishment should perform their allotted work with
accuracyand neatness and official hours must be devoted to regular diligent
andpunctualdischarge of duties connected with the office.
All members of the establishment shall be available for any duties that may
beassigned to them without any claim to an allowance.
Members of the establishment are warned against the practice of making
knowntheir grievances by means of anonymous or pseudonymous letters. No
attention willbe paid to any such Communication.
Members of the establishment are prohibited from seeking interviews with
officersat their residence.
They are also prohibited from seeking interviews with officerseither in or out
of office when the object of such interviews is to secure their
ownadvancement in office or to benefit their relatives or friends.
No member of theestablishment shall bring or attempt to bring any political
or other influence to bearupon any superior authority through outside
agencies with a view to further his interest in respect of matters pertaining to
his service under the Government such asadvancement, promotion, transfer,
deputation, etc.
The staff is not permitted to wander about the building during office
hours.Communications between members of the same section during office
hours shouldbe confined to official matters.
Before leaving office, every member of the establishment is expected to
arrange hispapers, etc., neatly and to clear his table of all superfluous
documents.
This order must be rigidlyobserved, as otherwise a careless system of
keepingdocuments may prevail withpossible danger of loss of documents
besides making it impossible for the peons onduty to dust the tables
No Government servant shall be a member of, or be otherwise associated
with, anypolitical party or any organisation which takes part in politics nor
shall he take part in,subscribe in aid of, or assist in any other manner, any
political movement or activity. Indulgence in unauthorised acts and/or
unbecoming acts by a Government servantduring or outside office hours
(such as holding of meetings without permission,distribution of hand bills,
etc.) within or outside office premises shall render aGovernment servant
liable for disciplinary action.
No Government servant shall join or continue to be a member of an
association or organisation the objects or activities of which are prejudicial to
the interests of the sovereignty and integrity of India or public order or
morality.
No Government servant shall canvass or otherwise interfere with, or use his
Influence in connection with or take part in an election to any legislature or
local authority.
It is the duty of every Government servant who may be arrested for any
reason (even though he may be subsequently released on bail) or who has
been convicted by a Court of Law, to promptly inform his Departmental
superiors of the fact of his arrest/conviction and the circumstances connected
therewith, as soon as it is possible for him to do so, irrespective of whether
the offence is of a serious nature or is purely technical.
35
21.
Every member of the establishment has the right of appeal to the
PrincipalController/Controller. Appeals to the Principal Controller/Controller
should besubmitted in writing through the Accounts Officer/Senior Accounts
Officer/ACDA-in-Charge Section and the Accounts Officer/Senior Accounts
Officer/ACDA-in-charge ofthe Administration Section. Whenever in any matter
connected with his servicerights or conditions, a member of the Department
wishes to press a claim or to seekredress of grievances, the proper course for
him is to address the Principal Controller/ Controller.
22.
Representation to Government must not be made unless all means of
receiving attention or redress from the C.G.D.A. have been exhausted, even
in such cases the representation must be submitted through the proper
channel,
23.
No member of the establishment is permitted to send copies of his
representation to any outside authority, i.e. authorities who are not directly
concerned with the consideration thereof (e.g. other Honourable Minister,
Secretary, Members of Parliament etc.)
24.
Representation to the superior officers of the Department either officially or
by
name from relatives of the staff regarding service matters (such as transfers,
promotions, etc.) are highly objectionable and reflect adversely on the
conduct of the Government servants concerned.
25.
Every individual wishing to submit a representation or petition must do so
separately only in respect of matters in which he has a personal interest.
There is no objection to an identical representation or petition being made by
more than one employee, provided the circumstances and conditions of the
case represented in the petition apply personally to each individual by whom
it is submitted
36
CHAPTER - 3
ROLE & FUNCTION OF PCDA/CDA
In the Principal Controllers/Controllers Offices, as a general rule, no section will
beunder the direct control of the Principal Controller/Controller. His/her time
willusually be fully occupied in dealing with the work as Financial Adviser,
theorganisation of the work under his control, important cases that demand his
personalattention, disciplinary cases, and in visiting Headquarters of Commands,
Areas, etc.,and periodical Inspections of,- sub-offices. Personnel management with
specialemphasis on staff welfare also engages his/her personal attention.
They are responsible for communicating to the officialsunder their control all orders
affecting expenditure which may concern them,whether such orders are in the form
of corrections to Regulations, Defence Audit orAccount Code or Otherwise.
It is further their duty to issue any subsidiary instructions that may be necessary or
desirable.
They may correspond direct with the Government ofIndia and Service Headquarters
on routine matters and others which do not affectthe personnel of the Department.
References relating to interpretation of rules orrectification of anomalies in the
existing rules will invariably beaddressed to the CGDA with a statement of the
reasons where necessary.
They are responsible to determine the requirements ofofficers and establishment for
their respective offices with due regard to efficiencyand economy, and to report
their requirement to the C.G.D.A. as and when called forby him/her.
They will ensure the punctual submission of all prescribedperiodical statements,
accounts, reports, etc., to the authorities concerned.
A Principal Controller/Controller may not over-rule a decision given by a
predecessorin office without reference to the C.G.D.A.
Principal
Controller/Controller
will
co-operate
with
General
Officers
Commanding,Heads of Departments and with the executive Officers, in all matters
of accountsaffecting the duties of their appointments and as far as practicable, will
bring to thenotice of the General Officers Commanding or Heads of Departments,
every questionof financial importance which either comes to their knowledge in the
course of theirwork, or which they may be able to investigate independently.
Whenever a PrincipalController/Controller is consulted by a General Officer
Commanding or the Head of aDepartment regarding the necessity for the sanction
of the Government of India toany proposal involving expenditure, he/she will submit
a reasoned answer showingwhy he/she hold one view or another.
Principal Controllers/Controllers are empowered to call on the heads of
militaryexecutive departments for any information they may require, either to
elucidate acharge, or to examine a proposal involving expenditure.
Principal Controllers/Controllers will enforce the prompt settlement of all advances or
other outstandings against individuals or departments.
37
Principal Controllers/Controllers will see that all claims against foreign Governments
are supported by the necessary vouchers and documents, and that they are
promptly forwarded through the proper channel for final settlement.
Principal Controllers/Controllers will arrange for the local audit of store accounts and
periodical inspections of the cash accounts of all units and formations in their audit
areas.
Principal Controllers/Controllers will exercise the prescribed check over new
contracts tosee that they are in order and consistent with the rules in Financial
Regulations for the Defence Services, Part I, Volume I
When a Principal Controller/Controller considers that the prescribed practice
orprocedure is unsatisfactory or capable of substantial improvement and desires
tointroduce improvement in procedure, he/she may where he /she is competent
totake decisions on such matters, implement the same and apprise the C.G.D.A. of
theaction taken, indicating clearly in what respects the prescribed procedure is held
tobe defective, inadequate or unjustifiable and the specific merit of the
proposedprocedure over the current or authorized procedure.
If a Principal Controller/Controller desires to relax audit temporarily in a matter
whichconcerns his own office or his subordinate offices, he should invariably refer
the caseto C.G.D.A. for obtaining prior concurrence
38
CHAPTER -4
OFFICIAL COMMUNICATION
The different forms of written communication and methods of delivery generally used
by a department are described below. Each form has a use and, in some cases, a
phraseology of its own. Only black or blue ink will be used in communications. A
small margin of about one inch will be left on all sides (left, right, top and bottom) of
each page of communication to ensure better preservation of records as at times the
paper gets torn from the edges, making reading of the documents difficult
Letter—This form is used for corresponding with Foreign Governments, State
Governments, the Union Public Service Commission and other constitutional bodies,
heads of attached and subordinate offices, public enterprises, statutory authorities,
public bodies and members of the public generally. A letter begins with the salutation
"Sir/Madam" as may be appropriate and ends with the subscription "Yours faithfully".
Demi-official letter - (a) This form is generally used in correspondence between
Government officers for an interchange or communication of opinion or information
without the formality of the prescribed procedures. It may also be used when it is
desired that the matter should receive personal attention of the individual addressed.
Since demi-official letter is written in the first person in a personal and friendly tone,
it should be addressed by an officer in a Ministry/Department who is ordinarily not
more than one or two levels below the officer to whom such communication is
addressed.
Note:For the purpose of determination of level, Secretary/Additional Secretary and
Director / Deputy Secretary will be considered as one level.
(b) Communications to non-officials can also take the form of a demi-official letter
Office Memorandum—This form is generally used for corresponding with other
Departments or in calling for information from or conveying information to its
employees. It may also be used in corresponding with attached and subordinate
offices. It is written in the third person and bears no salutation or subscription except
the name and designation of the officer signing it.
Inter-departmental note (I.D.Note)—
(a) This form is generally employed for obtaining the advice, views, concurrence or
comments of other Departments on a proposal or in seeking clarification of the
existing rules, instructions etc. It may also be used by a department when consulting
its attached and subordinate offices and vice versa.
(b) The inter-departmental note may either be recorded on a file referred to another
department or may take the form of an independent self-contained note. The subject
need not be mentioned when recorded on the file itself.
Fax facility—In urgent and important matters (including legal and financial
messages), departments may use fax facilities to send messages, wherever
available. Offices not connected through fax but having telex facilities, may send
urgent and important messages through telex, instead of a telegram in
communicating with outstation offices
Registered Post/Registered A D (Acknowledgement Due)—This method of
delivery is used in communicating with offices to ensure receipt of the
communication and in the case of Registered A D an acknowledgement of the
delivery is also received by the issuing office.
39
Speed Post—This method of delivery is used to ensure quick receipt of messages
warranting urgent attention at the receiving end and an acknowledgement of the
delivery is also received by the issuing office.
Office order—This form is normally used for issuing instructions meant for day to
day internal administration, e.g., grant of regular leave, distribution of work among
officers and sections, appointments and transfers, etc.
Order—this form is generally used for issuing certain types of financial sanctions
and for communicating government orders in disciplinary cases, etc., to the officials
concerned
Circular—this form is used when important and urgent external communications
received or important and urgent decisions taken internally have to be circulated
within a department for information and compliance by a large number of employees
Unless permission to the contrary has been obtained from the C.G.D.A.
allcorrespondence, inward and outward, will be received, registered, issued
andrecorded in accordance with the system laid down FOR THE PURPOSE.
Queries made by the Principal Controller/Controller or another officer on inward
correspondence should invariably be replied to by the Accounts Officer/Senior
Accounts Officer/ACDA-in-Charge of the Section or A.A.O./S.O.(A) concerned, on the
same day or the first thing the following morning. If a complete reply cannot be
given within that time the documents must be taken to the officer who asked the
question and the cause of delay explained.
It is of the utmost importance that all correspondence, bills etc., received in a
Principal Controller's/Controller's Office should be dealt with promptly and
systematically. It should be the aim of each member of the establishment to dispose
of all letters, bills, etc., on the actual date of receipt, or on the following day at the
latest. If any special difficulty is encountered, or delay is anticipated in dealing with
a particular case, the matter should be promptly brought to the notice of the
A.A.O./S.O.(A), who will inform the Accounts Officer/Senior Accounts Officer/ACDA
in- Charge, Section, if necessary.
Under no circumstances should such cases be neglected for prolonged periods in
order that attention may be given to other work.
Correspondence should be precise and the issues raised should be well analysed.
Omission of relevant data and mention of irrelevant ones will inevitably lead to
vague replies and unnecessary correspondence. All correspondence between the
Principal Controller's/ Controller's Office and the subordinate offices (LAOs/RAOs,
Pay Accounts Office etc.) will be broadly classified under one or other of the
following categories.
i. Requests for facts, or rendition of required documents: These will be dealt
with by clerks and Supervision will be limited to speed and accuracy.
ii. Requests for orders, decision or views : These will be dealt with by
A.A.O./S.O.(A) and above. Clerks will only assist with facts, search of orders and
personal experience, if useful.
iii. Important cases : These will be dealt with by the Officer-in-Charge/ACDA inCharge himself.
40
Reminders for outstanding replies to audit objections, correspondence, etc., will be
issued on due dates. Reminders regarding requests for orders or decisions or views
will be issued by Gazetted Officers.
Communications involving audit decisions or interpretations of rules, or on
otherimportant matters (including cases having disciplinary aspect) on which
theController's opinion is required, addressed to the CGDA or GOsC, or to any
Defence Service authority superior to them, should invariably be issued after
approval by thePrincipal Controller/Controller or in his absence by the Joint
Controller and signed bythe Group Officer.
Joint CsDA, IDAS Officer and Senior Accounts Officer/Accounts Officers will
signletters, etc., issued under their own authority as such, and not `for
PrincipalControllers'/ `for Controllers'. Signature `for Principal Controllers'/'for
Controllers'will only be used when another officer is acting on behalf of the
PrincipalController/Controller. In case where the Principal Controller/ Controller or
otherofficer whose authority' for issuing a communication has been obtained, has
beenconsulted, the junior officer who has consulted him should commence
hiscommunication with the words "I am directed, etc."
A reminder should state the subject and not merely the number and date of the
letterto which attention is drawn. Initials and names in all manuscript documents
should be written in block capitals. Letters should bear the date of despatch and not
that of the draft, or the date whencopied. When a reply to letter received is likely to
be delayed for want of answers toside references, or for any other reasons, an adinterim reply should invariably besent within a week of the receipt
SUBMISSION OF DRAFTS
Drafts should be worded as clearly and as concisely as possible. Wherever a simple
endorsement will suffice, a separate forwarding letter or memorandum should not
be written. All instructions should be conveyed in a becoming and courteous, style,
and the
language used should clearly convey the meaning intended. When enclosures are
forwarded, they should be described in the margin, or if they are numerous, in a
separate schedule. Paragraphs should be numbered and all drafts should be
initialed and dated by the clerk and/or by the Assistant Accounts
Officer/Section Officer (Accounts).
No addition or alterations should be made by a subordinate to a draft passed by a
Gazetted Officer without the previous consent and under the initials of that officer.
Demi-official correspondence should not be quoted in official correspondence.
Separate letters should be written on distinct subjects. Each letter should deal with
one subject only. Replies and acknowledgments to all confidential and Secret
Communications should be treated as 'Confidential' or 'Secret' as the case may be.
Secret/ Confidential letters should be acknowledged citing reference to the number
and date of the Secret/Confidential letter without indicating the subject.
41
SYSTEM OF FILING
Each section will have a distinguishing letter, which will be entered on all
correspondence as well as on the files of the respective section e.g., Accounts
section will mark their file as A/9900, and Administration and I.A. Section as
AN/1130, IA/920 etc.
A file will consist of a jacket or case cover on the outside of which will be shown the
subject of the file, the distinguishing letter of the section followed by a stroke and
the number of the file. Papers will be filed serially according to the dates of the
receipt and issue, the oldest at the bottom and the latest at the top. D.O.
correspondence will be placed on the files concerned, unless this is considered
desirable. Office notes follow the ordinary rule and will be filed with the papers in
connection with which the office noting arose. Pages in a file should be numbered
and cross linked with previous and subsequent pages relating to the matters dealt
with in a page.
Separate files for all reports and returns called for occasionally.Note. There should
be one subject only for one file. Files should not be bulky and usually after about
150 pages, fresh files with the same number but with the next Volume Number will
be opened e.g., A/9900-VI, S18822IIII etc.
To facilitate easy and quick reference to the files at any time, a card index will be
maintained by the section in which the designations and numbers of all files will be
recorded. Only one card will be maintained in the index for all files bearing the same
sub-heading.
Under the orders of the A.A.O./S.O.(A) all files on which no action has been taken
for three calendar months or which do not require further action will be removed to
the record room monthly.
Movement of files and other papers—
Movement of files will be entered meticulously in the file movement register.
Electronic file movement register exactly in the form will be prepared and
maintained in the computerized environment. When current files are linked with any
other file, the movement of the linked files will be marked in the space allotted in the
file movement register for the file with which these are linked and also individually in
the space allotted in the file movement register for each of the linked files.
When recorded files are put up with a current file, the movement of the recorded files
will be marked in the space allotted in the file movement register for the file with
which these are put up. It will also be ensured that the procedure regarding
requisitioning of recorded files as laid down is observed, invariably. Movement of
files received from other departments/sections and other receipts which have not
been brought on to a file in the receiving section will be noted in the 'remarks'
column of the section diary. No current file will be issued to other sections except
against written requisition and after marking its movement in the file movement
register.
42
Specimen forms of Communications
(1 ) Letter (with endorsement)
No. ..............
Government of India
(Bharat Sarkar)
Department of ...................
(....................Vibhag)
New Delhi, the ........... (Date
To
Subject: Sir,
Subject:
Sir,
*With reference to your letter No. .............................. dated ............................. .............on
the subject cited above... ........ ........
Yours faithfully,
(Endorsement)
No. ....................................
@Sd/ (A.B.C.)
Under Secretary to the Govt. of India
Tele: No. ................
Copy forwarded for information/necessary action to : (1 )
(2)
(A.B.C.)
Under Secretary to the Govt. of India
Tele : No. ....................
*Other alternative forms of the introductory phrases commonly used are :
(i) I am directed to refer to your letter No.... dated. .................... on the subject and to say that..... (ii)
In continuation of my/our/this Department’s letter No. ................dated .........
(iii)With reference to the correspondence resting/ending with your/this department’s letter No......
dated......
@To be typed on copies intended for (1) and (2) referred to in the endorse ment.
43
(2) Demi-Official letter
XYZ
Deputy Secretary
D.O. No...................
GOVERNMENTOF INDIA
(Bharat Sarkar)
Department of ...........................
(.....................................Vibhag)
New Delhi, the 2010
.
My dear/Dear Shri.............................
We propose to draw up a model scheme for ........................... A copy of the outline
prepared in this connection is enclosed.
I shall be grateful if you would let me have your comments as soon as possible. I may add
that we intend circulating the draft scheme formally to all departments in due course for their
comments.
With regards,
Yours sincerely
(X, Y, Z)
A.B.C.,
Deputy Secretary
Department of ... ... ... ... ...
(... ... ... ... ... ..... ... Vibhag
Krishi Bhawan,
New Delhi 110001
(3) Office Memorandum
No...................................
GOVERNMENT OF INDIA
(Bharat Sarkar)
Department of .............................
(...........................................Vibhag)
New Delhi, the 2010
OFFICEMEMORANDUM
Subject:
Reference is invited to this Department O.M. No. ................... . . .. . .. .. . . .. .. . .. .
. .. .. . .. . .. . ........ dated.................
2. Doubts have been expressed whether the provisions of......................................also apply
to... .. . .. . . .. . . . .. . . .. ... . .. ... It is hereby clarified that... . .. . .. . .. .. . . . . . .. . . .
(A.B.C.)
Under Secretary to the Govt. of India
Tele. No..................
To
The Department of ..................
(... ............... Vibhag)
(Shri/Smt.............................)
Yojana Bhavan
Parliament Street
New Delhi 110001.
44
Inter-departmental note
GOVERNMENTOF INDIA
(Bharat Sarkar)
Department of ..................
(.............................Vibhag)
Subject:
1. The present rules regulating the issue of identity cards provide inter alia that .....................
2. A question has now arisen whether.......... .....
3.
4.
5. This department will be grateful for the advice of the Department of Legal Affairs on the
issue raised in para 4 above.
(X.Y.Z.)
Deputy Secretary
Tele. No. .........
Department of Legal Affairs (Vidhi Karya Vibhag), (Shri ..................), Shastri Bhavan, New
Delhi
Department of .................... I-D No ..............................Dated ..............................
(6) Office Order
No .......................
GOVERNMENT OF INDIA
(Bharat Sarkar)
Department of ... ... ... ... ... ... ... ..
(.............................................Vibhag
New Delhi, the 2010
OFFICE ORDER
Shri Y.X.Z., a permanent Section Officer in this department, is granted earned leave
for....................................days
from.........................
to.......................................................................with permission to prefix ....................... and
suffix............................. both public holidays, to the leave.
2. It is certified that Shri X.Y.Z. is likely, on the expiry of this leave, to return to duty at the
station from which he proceeded on leave.
(A.B.C.)
Under Secretary to the Govt. of India
Copy to :
1. Office order file
2. Cashier
3. Section concerned
4. Shri X.Y.Z. Section Officer
45
Alternative specimen
No ......................
GOVERNMENT OF INDIA
(Bharat Sarkar)
Department of ... ... ... ... ... ... .
.........................................Vibhag
New Delhi, the 2010
OFFICE ORDER
It
has
been
decided
to
transfer
the
work
relating
to..................................................................from..........................................
Section
to
........................ Section.
(A.B. C.)
Under Secretary to the Govt. of India
Copy to :
ORDER
No ......................
GOVERNMENT OF INDIA
(Bharat Sarkar)
Department of .....................
(........................................Vibhag)
New Delhi, the 2010
ORDER
Sanction of the President is accorded under rule 10 of the Delegation of Financial Powers
Rules, to the write off irrecoverable loss of Rs. 5000 (Rupees Five Thousand only) being the
value of the following articles belonging to this department.
(1)X X X XX
(2) X X X X X
(A.B.C.)
Under Secretary to the Govt. of India
Tel. No........:..........
Copy forwarded to :
1. TheA.G.C.R., New Delhi.
2. Internal Finance Section.
3. Cash Section.
Alternative
No ......................
GOVERNMENT OF INDIA
(Bharat Sarkar)
Department of .....................
(........................................Vibhag)
New Delhi, the 2010
ORDER
Shri .......................................................... a lower Division Clerk in the Department
of.................................................. is hereby informed that it is proposed to take action
against him under rule ...................................................... of ...........................................
2. Shri ................................................... is hereby given an opportunity tomake such
representation as he may wish to make against the proposal within seven days from the
date of issue of thisorder. .
3.
4.
(D.E.F.)
46
Deputy Secretary to the Govt. of India
Tel. No. .................
To
Shri L.D.C.
.............................
.............................
THESE ARE SPECIMEN SUBJECT TO CHANGE IN THE CONTENT NOT IN
FORMAT.
Manuals , Rules & Acts used in DAD
Departmental publications for day to day work in different offices of the Defence
Accounts Department are as follows
Defence Audit Code (general
applicability)
Defence Account Code
Office Manual Part I
( DO….. )
(..DO….)
Office Manual Part II (Regional
Controller)
Office Manual Part III (P.C.D.A. (AF),
Office Manual Part IV (P.C.D.A.
(Pensions)
O.M. Part-XII
O.M. Part-XIII Vol. I
O.M. Part-XIII Vol. II
Army Local Audit Manuals
MES Accountants Manual
MES Local Audit Manual
Pension Payment Instructions.
N.L.A.O's Manual
Office Manual Part V (C.D.A. (Funds)
Air Force Local AuditManual
Office Manual Part VI (PCA(Fys))
Coast Guard Manual
Office Manual Part VII (P.C.D.A. (Navy)
Office Manual Part VIII
Office Manual Part IX (P.C.D.A.
(Officers)
Office Manual Part X (Army (Ors)
Office Manual Part XI
47
Besides this other Government publication & services publication followed in the
functionoing of the Department is as follows
1. MESR
18. Pay and Allowances Regulations for
2. DWP
the Army
3. Appendix 'A' to the Defence Services
19.Factory Accounting Manual
20. Pay and Allowances Rules for
industrial
Estimate
4. IAFW 2249 (GENERAL CONDITIONS
OF
employees
CONTRACT)
21.Receipts and Payment Rules
5. Financial Regulations Part I (Vol. I
and
22.Introduction of Indian Govt Accounts
and Audit
Vol. II)
23.Classification Hand Book, Defence
6. Financial Regulations Part II
Services – Receipts & Charges,
7. General Financial Rules
24.Pamphlet of Revenue, Debt and
8. Store Accounting Instruction
Remittance Heads
9. Right To Information Act
25.CSR Vol. I & II
10.CCS(Conduct) Rules, CCS(CCA) Rules.
26.Pension Regulations I & II
11.Fundamental Rules & Supplementary
Rules
12. Central Govt. Employees Group
Insurance Scheme
13.Medical Attendance Rules
14.Leave Travel Concession Rules
15.Children's Educational Assistance
Rules
16.House Building Advance Rules
17.Overtime Allowance Rules
48
CHAPTER – 5
SECTION OF MAIN OFFICE
ADMINISTRATION SECTION
OBJECTIVES
Objectives of Administration Section are:
(i) To look after various aspects of personnelmanagement of the organization.
(ii) To provide a healthy living and working conditions for officers and staff.
DUTIES
This section deals with: General administration of the office and its sub-offices, including the requirement of
establishment, recruitment, postings and transfers, confirmations, pay, increments,
promotions, leave, conditions of service and retirement of officers and the establishment;
 Conduct and discipline;
 Annual Performance Assessment Reports;
 Departmental examinations;
 Duty allowances;
 Maintenance of service documents;
 Office security and care of Office building, Furniture, Remotely Managed franking
machines, Photocopiers, Fax machines and other machines, etc.;
 Diarisation and distribution of secret, confidential and demiofficial letters and other
communication received in the office;
 Preparation of pay bills of gazetted and non-gazetted personnel of the Office. (In certain
offices, the pay bills of gazetted officers of the office are prepared by the Pay Section, as
a matter of convenience);
 Permanent advance and office contingent and miscellaneous expenditure;
 Custody, disbursement and accounting of cash;
 Maintenance of cash book and other allied registers;
 Scrutiny and countersignature of travelling allowance claims of officers and
establishment;
 Preparation of pension claims of gazetted and non-gazetted staff of the office and all
work in connection with the verification of their service;
 Bills on account of reimbursement of medical expenses;
 Payment of advances of pay and travelling allowance, temporary advances and
withdrawals from G.P. Fund;
 Advances for the purchase of conveyances in respect of gazetted and non-gazetted
staff;
 Payment and recovery of leave salary and pension contributions in respect of persons
lent to and from the Defence Accounts Department;
 Application for outside employment;
 Preparation of Budget estimates in respect of Locally Controlled Heads under Head 4(A)
and (C) and cash requirement estimates of the Defence Accounts Department;
 Control and distribution of Grant-in-Aid for amenities.
 Application for subscribing to Postal Life Insurance;
 Maintenance and updation of the Personnel Information System.
 National Pension System (NPS) (erstwhile New Pension Scheme)
 Formation of Resident Welfare Association in DAD Residential Complexes
 Regional Office Councils (ROC) and all subsequent actions
 Procedure concerning direct and indirect taxes
PAY BILLS OF GAZETTED AND NON-GAZETTED PERSONNEL
 The pay bills of officers and staffs of Defence Accounts Departmentare prepared by the
AN-Pay section
 Payment is made under theorders of the Group Officer-in-charge, AN Pay Section.
49










The original pay billsbearing stamped receipts will be submitted to the Auditing
PCDA/CDA bythe 15th of the month following that in which they are paid
Arrears of pay, etc., will not be drawn in regular monthly pay bills, butin supplementary
pay bills.
Arrears of pay and allowancesconsequent on the grant of increment through I.A.FA.-456
may, however, be drawn in the regular pay bills, or through supplementary pay bill.
The pay bills of staff who are about to retire, should, however, be drawn separately from
the pay bills of the others for the last three months and sent immediately after payment
to the "Auditing PCDA/CDA" to enable him to carry out the service verification without
having to wait for the receipt of establishment pay bills in the usual course.
The establishment pay bill will be prepared in quadruplicate by typingor through
prescribed IT/EDP module (whichever is applicable).
One copy will be used as the office copy, another for transmission to the
"AuditingPCDA/CDA", the third to serve the purpose of an acquaintance roll and the
fourth to be used as the "working copy" for the following month.
G.P. Fund schedules and certified lists of Postal Life Insurance premia and absentee
statements, NPS should also be prepared simultaneously.
Pay chequesetctogether with the acquaintance rolls on I.A.F.(C.D.A.)-347, which will be
receipted and returned to the Administration Section immediately after the disbursement
of pay.
Undisbursed amounts, if any, may be retained up to the 10th of the month following that
to whichthey pertain.
The acquittance rolls and treasury receipts for the undisbursed amounts should be sent
to the Administration Section to reach them on or before the 15th of the month following
that to which they pertain.
Last Pay Certificates
 In the case of officer of the Defence Accounts Department, thePCDA/ CDA from whose
office an officer is transferred will issue a last pay certificate
PERMANENT ADVANCE
 The amount of the permanent advance or Imprest in respect of aPCDA/CDA's Office is
fixed by the C.G.D.A. to whom applications should bemade for reduction or increase if
necessity arises.
 The permanent advancesanctioned by the C.G.D.A. for a PCDA/CDA is exclusive
OFFICE CONTINGENT EXPENDITURE
 A register will be maintained on I.A.F.A. 481 in which all charges onaccount of office
contingent expenditure will be recorded under each head ofexpenditure.
 Progress of expenditure will be watched
 The nature of the charges to be met from the allotment forcontingencies is given in Rule
98 to Government of India (Receipt &Payment) Rules, 1983.
 All bills and sub-vouchers will be cancelled whenentering the charges in the contingent
register
 Before contingent expenditure is incurred sanction of the CompetentAuthority i.e. DCDA/
ACDA (Admin.) or Addl. CDA or J.C.D.A. to whompowers have been delegated by the
Pr.CDA/ C.D.A under different events(leave/ tour/ etc. of the officer who has been
delegated powers under GFR,2005& DFPR, 1978 & subsequent amendments, or the Sr.
Dy. C.G.D.A. orDy. C.G.D.A. or Sr. Asst. C.G.D.A. or Asst. C.G.D.A. (in the case of
HQrsoffice) as the case may be) must be obtained.
 As soon as the bills are preferred or the expenditure is incurred fromImprest the relevant
sanction should be enfaced "cancelled" noting there onthe item number of the contingent
register.
Procedure for drawl of cash for pay of establishment

One AAO/SO (A) and two Auditors/ Clerks will be deputed toaccompany the Cashier to
the bank to draw the Pay of the establishment. Inthe case of offices where the cash
handled on pay day is over Rs. 1.5 Lakh(Rs. One Lakh Fifty Thousand), an Accounts
Officer/Sr. Accounts Officershould be placed on overall supervision of the arrangements.
50

The Cashiershould invariably be placed on overall supervision of the arrangements.
TheCashier should invariably be accompanied by an Assistant or a MTS whenhe goes to
the bank for encashment of cheques up to Rs 50,000/- on theday other than pay day.

Similarly, for encashment of cheque exceeding Rs50,000/- he will be accompanied by
an AAO/SO (A) detailed for thispurpose".

On receipt of the money, the pay of the establishment will bedisbursed by the cashier
assisted by the AAO/SO (A) and Auditors/Clerks,to the respective senior AAOs of
sections
Cash Book
 A cash book will be maintained on I.A.F.A.-125 by the cashier underthe supervision of
the DCDA/ ACDA (Administration) or, if no such officer isfunctioning, the officer-incharge, Administration Section.
 All cheques drawnin favour of the PCDA/CDA and all payments made out of the cash
obtainedby encashing such cheques will be accounted for in the cash book.
 Paymentmust be supported by the acquittances of the payees and other
connectedvouchers, if any.
 The PCDA/CDA will also depute, at irregular intervals, an officer ofthe I.D.A.S. rank to
conduct surprise checks of the actual cash in hand andas shown in the cash book.
Register of Cash Received
 The register is maintained on I.A.F.A.-616.
 When a cheque, draft,money order, Indian Postal Order (RTI fee) or cash is received for
credit tothe Government, the relevant columns in the register will be filled in by
theCashier who will note the serial number of IAFA-616 both on covering memoand
cheque / DD and register submitted to the Officer-in-Charge,Administration.
 Then, the person other than the Cashier i.e. AssistantCashier after linking the Sl. No. of
the register IAFA-616 (wherein thecheque/ DD has been entered) on both of cheques,
and forwarding memo /covering memo will prepare the MRO (in the prescribed digital
format) andwhere no Assistant Cashier has been appointed, this work may continue
tobe handled by the Cashier himself.
 Simultaneously handing over the abovememo to the Audit Section concerned through
the register, deposit thecheques/ DD into the Bank immediately and hand over the
original MRO(indicated with 17 digits Military Index Number (MIN)) as receipted by
theBank to the Audit Section after obtaining the initials in the above register.
 On receipt of the receipted MRO, the Audit Section will immediately adjustit. The Cashier
/ Assistant Cashier while preparing the MRO will ensure fulldetails of receipt money and
name of the PCDA/CDA by whom the credit isadjustable are clearly written / typed in
bold capital letters on the MRO foreasy location of Duplicate MRO received in Account
Section with credit scrollsubsequently.
SCRUTINY AND COUNTERSIGNATURE OF TRAVELLINGALLOWANCE/LTC CLAIMS
OF OFFICER AND ESTABLISHMENT
The grant of travelling allowance to the personnel of the DefenceAccounts Department is
governed by Supplementary Rules. Before theclaims are countersigned, the following
checks will be exercised by thecontrolling officer:(i) The claims have been preferred in the prescribed form and allitems and certificates
printed thereon have been dulycompleted.
(ii) The authority for the move has been quoted.
(iii) A certificate regarding the use of (a) Government transport, (b)free accommodation and
(c) free messing facilities and Statehospitality, has been endorsed on the bill in the case
oftemporary moves.
(iv) Travelling allowance bills of individuals of Group C includingMulti-tasking staff, who have
claimed rail fare by mail/expresstrain, are endorsed, with a certificate to the effect that the
journey was actually performed by mail/express train. In thecase of claims relating to
journeys other than on transfer, theControlling Officer should also certify on each claim that
the journey was performed by mail/express train in the public interest.
(v) Scrutiny of the necessity, frequency and duration of journeys and halts for which
travelling allowances is claimed.
51
(vi) Scrutiny of the distances entered in travelling allowances bills, including distance from
the fixed point to the railway station and vice-versa.
(vii) The rate of mileage allowance claimed is applicable to the class of accommodation to
which the Government servant is entitled under rules and that a certificate is given by the
individual thatsuch class of accommodation has actually been used by himand the railway or
steamer fares claims have been paid by him.
(viii) Claims for the cost of transporting personal effects aresupported by proper receipts and
vouchers and that the costclaimed does not exceed the authorized limit.(ix) Moves of the
families and/or luggage have taken place withinthe prescribed time limit.
(xi) Wherever higher rate of road mileage is claimed a certificate isfurnished in the
prescribed Proforma
(xii) Travelling allowance claims of stenographers, personalassistants and Multi-tasking staff
are supported by a certificateregarding particulars of their journeys from the gazetted
officerunder whose instructions the journeys were performed.
(xiii) When an individual is transferred from station A to station Band then to station C within
a period of 6 months of transferfrom station A, sanction of the Government of India exist
foradmitting family travelling allowance to the individual fromstation A to station C.Audit
checks on TA/LTC Claims may be dealt with as per theprocedure outlined in Para 650 to
650B of OM Part II.
BILLS ON ACCOUNT OF REIMBURSEMENT OF MEDICAL EXPENSES
All bills for charges on account of medical attendance and treatmentwill be countersigned by
the controlling authorities who are empowered tocountersign travelling allowance bills.
ADVANCES OF PAY AND TRAVELLING ALLOWANCE ON TRANSFER
Advances may be made to a member of the establishment underorders of transfer up to an
amount not exceeding one month's pay which heis in receipt of immediately before transfer,
or the pay that he will be entitledto after transfer, whichever is less, plus the travelling
allowance to which hemay be entitled under the rules in consequence of the transfer.
Suchadvances may be sanctioned by the PCsDA/CsDA or the other officers as
asmentioned in para 113 of OM Part II.
SERVICE BOOK AND LEAVE ACCOUNTS FOR OFFICERS OF DEFENCE
ACCOUNTS DEPARTMENT
 Service Book and leave accounts of all the SAOs/AOs and IDASOfficers will be
maintained in the Service Book form.
 The Service Book of aforesaid officers will be audited by the LAOsresponsible for
audit of Service Books of non gazette staff.
 The history of services of Sr.AO/AOs of the Defence AccountsDepartment is
maintained by the PCDA/CDA in the form of a register.
 Theregister should also contain a summary of leave etc. taken by theSr.AOs/AOs
during their previous service.
 On transfer of an officer from one PCDA/CDA to another PCDA/CDA,the Service
Book of the officer will be forwarded to the PCDA/CDA. dulycompleted upto date and
verified in all respects.
ADVANCES FOR THE PURCHASE OF CONVEYANCES
 These advances fall under two categories, viz.
(i) Advances for the purchase of motor conveyances;
(ii) Advances for the purchase of bicycles.
 The allotment sanctioned by the Government of India under (i) aboveis centrally
controlled by the Controller General of Defence Accounts.
 Theallotment in respect of (ii) above is distributed by the Controller General
ofDefence Accounts among the various PCsDA/CsDA
 The general rules regulating the grant of advances for the purchase ofconveyances
are contained in Rule 15 to 20 of Compendium of Rules onadvances to Government
Servants, 2005.
Motor Cars
 Applications for advances will be submitted to the C.G.D.A.
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The total amount to be advanced to a Government servant should not exceed
Rs.1,80,000/- and Rs. 1,60,000 on the second and subsequentoccasions or the
anticipated price of the car, whichever is the least.
A Government servant is expected to complete his negotiations for the said
purchase,and pay finally for the car, within one month of the date on which he
drawsthe advance; failing such completion and payment, the full amount of
theadvance drawn, with interest thereon for one month, must be refunded
toGovernment.
A Government servant shall, before he draws an advance for thepurchase of a motor
car, execute an agreement in Form II of theCompendium of rules on advances to
Government Servants, 2005, if theadvance is granted to him under Rule 17, or in
Form III, if the advance is91granted to him under Rule 18.
On completing the purchase of a motor car,he shall also execute a mortgage bond in
Form IV and/or Form V, as thecase may be, hypothecating the motor car to the
President as security forthe advance.
The car must be comprehensively insured against full loss byfire, theft or accident.
Personal Computer
 An advance for the purchase of Personal Computer may besanctioned subject to
mutatis mutandis to the conditions for motor car except that the amount of the
advance will not exceed Rs.80,000/- for the first occasion and Rs. 75,000/- for the
second andsubsequent occasions or the anticipated price (excluding custom duty if
any)whichever is less.
 The amount of advance including interest accruedthereupon will be recovered in 150
installments.
 However Rs 30,000/- or anticipated price (excluding custom duty ifany) whichever is
less, may be granted for employees whose pay in the payband ( i.e. band pay ) is not
less than Rs. 8,560/-(band pay under RPR,2008) and who are not eligible for motor
car advance.
Motor Cycles
An advance for the purchase of motor cycle or "Scooter" may besanctioned subject to
mutatis mutandis to the conditions laid down in Paras121 to 128 of OM Part II except that
the amount of the advance will not exceed sixmonths basic pay or Rs. 30,000/- for the first
occasion and five monthsbasic pay or Rs. 24,000/- on the second and subsequent
occasions or theanticipated price of the motor cycle, whichever is the least and the
advancewill be recovered in maximum 70 monthly installments.
House Building Advances
 The following categories of personnel are eligible for housebuilding advances
a) Permanent Central Government servants.
b) Central Government servants not falling in category (a) abovewho have, rendered
at least 10 years continuous service,provided:
(i) They do not hold a permanent appointment under StateGovernment; and
(ii) The sanctioning authority is satisfied that they are likelyto continue in the
service of the Central Government atleast till the house for which the advance
is sanctioned isbuilt and/or mortgaged to Government.
 Application on the prescribed proforma for advance from thoseeligible, will be
submitted to the C.G.D.A.
 Detailed rules regarding the grantof such advances are contained in the pamphlet,
"Rules to regulate the grantof advances to Central Government servants for building
etc., of houses",issued by the Ministry of Urban Development.
Note 1: In cases where both husband and wife happen to be CentralGovernment servants
and eligible for the grant of advance, it shall beadmissible only to one of them.Note 2:
Application for advances may be entertained for constructing a newhouse (including
acquisition of a suitable plot of land for the purpose fromsuch eligible Central Govt. servants
who have in view (but not in actualpossession) a developed plot of land on which
construction can commenceimmediately on receipt of the loan.
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APPLICATIONS FOR OUTSIDE EMPLOYMENT
 All applications from the permanent and quasi-permanentestablishment for
employment outside the department will be forwarded tothe C.G.D.A. with
recommendations for further action.
 The applicationshould invariably be supported with a copy of the advertisement, etc.,
forthe post applied for, and a written undertaking from the applicant as towhether he
is or is not willing to resign his job in the department in case heis selected for the job
applied for.
 The applications will be forwarded to theC.G.D.A. in all cases irrespective of whether
the undertaking is in theaffirmative or otherwise.
 Even in a case where the nature of duties is similarto those in the department, but
the scale of pay offered is very much inexcess of the individual's present
emoluments and he is in possession of nospecial qualification warranting a
preferential treatment, the C.G.D.A. mayinsist on resignation in the event of the
individual's selection.
 Applications from permanent and quasi-permanent staff foremployment under
Foreign Embassies and Foreign Governments will not beentertained.
 It will be seen that the cases are covered with the instructions laiddown in the
Ministry of Personnel, Public Grievances & Pensions,Department of Personnel &
Training OM No. 28011/1/2013-Estt (C ) dated23rd December, 2013.
MONITORING OF CAT/ COURT CASESA register for monitoring the progress of each
Court case from filing ofapplication (counter- affidavit) to the implementation of judgment or
filing ofreview application or SLP (Special Leave Petition) is maintained in prescribedformat
and the following reports are rendered to the HQrs Office:
(a) A monthly report on contempt notices/ petitions.
(b) A quarterly report showing the details of cases where the Courtjudgment was not
implemented;
(c) A quarterly report for monitoring of court cases
(d) A report on nomination of Nodal Officers for monitoring of CAT/Court cases at various
CAT Benches/ Courts; and
(e) A monthly report of Court cases where the DAD (CGDA/CDA) arethe respondents in a
soft copy.
REGIONAL OFFICE COUNCILS AND ALL SUBSEQUENT ACTIONS
 Almost all Government establishments employing a sizeable numberof persons have
a officially, recognized employees union or a staffassociations;
 Staff has its opportunity of democratically electingrepresentatives to represent their
interest and grievances.
 Association orUnion, however, represents one aspect.
 The other aspect is the managementview.
 To provide an opportunity for meeting of these two divergent views andevolving a
common approach, we have the J.C.M. system wherein theemployee find
representation through staff association and interact with theexecutive.
 The jurisdiction of the JCM Council includes matters relating toconditions of service
and work, welfare of employees and improvement ofefficiency & standard of work.
Regional Official Council (IV Level)
 This Council is constituted at Regional Office Level viz. PCsDA/ CsDAand will
consist of Members from official and staff side and will look after thegrievances of the
particular region.
 The various instructions regarding scope and functions, compositionof councils, etc.,
are issued by the Government of India/HQrs office fromtime to time, which govern
the activities related to the area.
 The annual membership subscription is to be recovered by the DDOsthrough check
off system in the pay for the month of July, on the basis ofthe consent note exercised
by the members in April every year.
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Consent fromgiven in April will remain valid till altered/changed and revision can
beexercised only in April every year to be effective from July of that year.
Thededuction of subscription of not less than one rupee per month can also bemade
from the pay rolls on monthly basis.
The distribution of seats in IVlevel Regional Office Council is made as per the
instructions contained in106the CGDA, New Delhi important circular No.
AN/VI/17003/I/VII/Ordersdated 2nd January, 2006.
HINDI CELL
Hindi Cell functions under Admin Section and are assigned with thetask to encourage the
officers and staff of PCsDA/ CsDA Offices to domaximum correspondence in Hindi,
implementation of Official LanguageHindi, conduct Hindi workshops, provide assistance for
translation of thedrafts and instructions in Hindi, carry out inspection of various Sections
tomonitor the compliance of laid down percentage of work in Hindi and submitreports and
returns to the CGDA.
The work procedure regarding of HindiCell is laid down in the “MANUAL REGARDING THE
USE OF OFFICIALLANGUAGE HINDI” published by Department of Official Language,
Ministryof Home Affairs, Govt. of India.
PROCEDURE RELATING TO THE DISPOSAL OF ATTACHMENT ORDERSAND
PROHIBITORY ORDERS
 Immediately on receipt of an attachment, the particulars ofthe attachment order will
be noted in the demand register.
 The originalorders, duly accepted, will then be returned to the court from which it
wasreceived and the duplicate sent for information and return to the PayingOfficer of
the office in which the individual whose pay is to be attached isserving
 The receipt of and correspondence, etc. relating to attachmentorder should be
treated as confidential.
 The extent to which the emoluments of a Government servant areexempt from
attachment for debt is laid down is section 60(1) of the Code of Civil Procedure,
1908.
 Cases may occur in which judgment debtors do not submit their paybills or do not
sign the acquaintance rolls in order to evade payment onaccount of an attachment
issued by a court of law. In such circumstancesthe pay of the judgment debtor may
be drawn in satisfaction of theattachment order subject to the restrictions laid down
in (2) above, and theamount remitted to the court concerned.
 The amount of the pay drawnshould be charged in the pay bill or the acquaintance
roll as the case maybe, as an authority for the charge, and the court's receipt for the
amountrecorded in the usual manner.
 Recoveries will, in the case of salaried individuals, be made monthly atthe time of
disbursement of their salary.
 Remittance in satisfaction of decrees by civil courts, other than thosein Punjab and
Delhi, will be made by postal money order; in case, however,where the amount
attached in payable to a civil court in the same station inwhich the accounts officer
disbursing the individual's pay is located,payment may be made by cheque.
 In the case of civil courts as Kolkata,Mumbai, Pune and Chennai also, cheques may
be issued without charge.
 When sending to civil court money deducted from the salary of theGovernment
servant under an attachment order, the disbursing officershould remit to the court
only the amount realized under the attachmentorders less the remittance charge.
 A disbursing officer is, therefore, notentitled to deduct from the salary any amount in
excess of that stated in theattachment order for the purpose of meeting remittance
charge.
 Attachment orders will be acted upon according to the date on whichthe salary is first
attached.
 The recovery of amounts, intimated through attachment orders will bewatched
through the demand register.
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Payments made in satisfaction of any judgment, decree or award ofany court or
arbitral tribunal are to be treated as Charged Expenditure onthe Consolidated Fund
of India.
Such payments will be made as and whenoccasion arises by drawing advances out
of the Contingency Fund of Indiaand covered subsequently by a supplementary
Appropriation obtained fromthe Parliament.
It will be ensured that payments in respect of suchtransactions are made only after
sanction for drawing advances fromcontingency Fund of India has been obtained.
DISBURSEMENT SECTION
OBJECTIVE OF DISBURSEMENT SECTION
 To arrange promptly for disbursement on behalf of the Defence Services and D.A.D.
DUTIES
(i) To arrange for cash assignments or treasuries and the Bank in favour of disbursing
officers authorised to make payments;
(ii) To indent for cheque pads and cheque books and to arrange for their custody and
accounting:
(iii) To pay all passed bills received from other sections;
(iv) To dispatch cheques and cheques slips;
(v) To prepare schedule III (I.A.F. (C.D.A.)-345) separately for each section on office
automation(wherever available) and to forward one copy of the schedule to
Account Section;
(vi) To maintain a daily record of the reconciliation made between the totals of Daily
payment sheets and schedules III to furnish Local Audit Officers
CASH ASSIGNMENTS
 The PCsDA/CsDA and other officers of the DAD may draw cheques on any civil
treasury or the Bank. No cash assignments are required for the purpose.
 Disbursing officers who are allowed to draw cash for certain specified purposes,
cash assignments are arranged in their favour.
 On receipt of requisitions for cash assignments in the audit section, forwards the
same to Disbursement Section. Disbursement Section will send requisitions to the
treasury officers or the Bank concerned by 15th March each year showing the
amount allotted to the several disbursing officers for each month of the year.
 Drawings against assignments granted to a disbursing officer will be watched by
Disbursement Section through a register in I.A.F.A.-277.
DISBURSEMENT
Payments are made either by cheques, cash or through electronic mode viz. NEFT, RTGS
or SBI-CMP.
The general rules affecting cheques are contained in Rules 300 to 302 Financial
Regulations Part I.
Books of daily payments sheets in form I.A.F.-728 will be maintained by each audit section.
All bills passed for payment will be allotted consecutive disbursement voucher numbers.
Urgent bills on which cheques have to be issued on the day of receipt, should be marked
"out today".
DISBURSEMENT THROUGH SBI CASH MANAGEMENT PRODUCT
 The Audit Sections will authorize payments, prepare payment order and DP Sheet in
respect of all passed bills.
 The Cheque Slip and related DP Sheets will be forwarded to the Disbursement Section
for processing payment.
 The details of credited and un-credited amounts will also be available in CMP portal and
downloadable pdf file.
 “D Section will download these two MIS from the CMP portal on daily basis.
 A copy of the credited and un-credited items will be sent by the D. Section to Accounts
Section for linking and pairing of Schedule-III and for the reconciliation of the compilation
figures.
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The details of the rejected items shall be given to the Audit Section concerned for further
course of action for settlement.
D. Section will also receive “Minus” Debit Scroll along with the details of the rejected
items.
D. Section will extract the rejected items which are not credited to the beneficiaries and
forward the same to the Audit Section concerned.
“D” Section will also maintain the register and watch the clearance of .Suspense. Head
0/020/96.
The “D” Section will be responsible for clearing the “Suspense” Head 0/020/96 in
consultation with Audit Section/ Accounts Section and will also liaise with SBI-CMP
Centre, Mumbai towards clearance of Suspense Head.
Punching Medium will however, be prepared by Audit Section on receipt of rejection
amounts mentioned in “Minus” Debit Scroll from “D” Section.
A copy of the punching medium will be forwarded to Accounts Section and “D” Section
for linking and clearing the suspense of rejected items.
Cheques for ordinary payments, should not be issued on the last two working days of a
month.
Piecemeal payment, on different days, of bills entered in any one daily payments sheet
will not be permitted under any circumstances.
The date of payment of the daily payment sheet will be noted in the space provided for
the purpose in the right hand bottom corner under the signature of the officer-in-charge.
Disbursement section will be supplied with a complete list of specimen signatures of all
gazetted officers and senior AAO/SOs (A) responsible for passing bills and signing the
daily payments sheets.
On receipt of the bills with I.A.F.A.-728 in Disbursement Section, the names of payees
and the treasuries as shown in the bills will be checked with those in I.A.F.A.-728.
Thereafter, the bills and the daily payments sheets will be sorted out separately for each
section and arranged in a serial order.
The bills will be stamped with the "Pay" stamp by the AAO/SO (A) and the enfacement
initialled by him.
Daily payment sheets will then be handed over to the operator.
Wherever the payment is to be made through electronic mode like SBICMP, the operator
will generate file containing the relevant data through OA system bearing unique no.
which will then be uploaded on banks portal.
Cheques and schedule III will be prepared by the operator in accordance with the
prescribed instructions laid down in Para 350 of OM Part II.
If a cheque relates to two or more bills the bills should be collected in a wrapper and the
relevant cheque slips/cheque forwarding memos pinned to the top of the voucher.
MISCELLANEOUS' SECTION
OBJECTIVES
To arrange prompt payment of bills relating to miscellaneous expenditure for the upkeep and training
of the Army and post audit of bills relating to miscellaneous expenditure.
DUTIES
(i) Audit and payment of bills for expenditure of a contingent and miscellaneous nature and
miscellaneous claims in respect of unit allowances
(ii) Audit of charges relating to acquisition and disposal of land and buildings by Military Land and
Cantonments Department
(iii) Audit of charges paid from grants such as amenities grant, training grant, assault-at-arms grant,
etc
(iv) Audit and payment of bills on account of local purchase of stationery and local printing
(v) Payment to the Survey of India for supply of Maps.
(vi) Audit of contingent and miscellaneous expenditure incurred by Indian Military attaches/Advisers
abroad,
(vii) Payment and adjustment of the cost of manufacture of medals and decorations, and contingent
and miscellaneous expenses claims of the Medal section of the Ministry of Defence.
(viii) Adjustment of debits on account of postage and air mail fee on the bags dispatched by Defence
Headquarters
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(ix) Adjustment of audit fees recoverable from Cantonment Boards for audit of their account by the
Defence Accounts Department
(x) Payment of imprest advances on I.A.F.F. 1036
(xi) Half yearly review of pre-audit bills
(xii) Placing of cash assignments at the disposal of recruiting officers, Gorkhas and Indian Embassy
in Nepal, audit of cash accounts rendered by them and payment of permanent advances to other
recruiting officers.
Note: Work relating to item (iv) with regard to local printing only (except in case of factory
establishments for which PCA (Fys) is responsible) and item no. (vii) will be dealt centrally in the
office of CDA (Army) Meerut. Items (vi), (viii) are dealt with centrally in the office of PCDA, New Delhi.
(xiii) Scrutiny of contracts of miscellaneous nature, viz., messing contracts at Selection Centers and
hair-cutting and washing contracts and conservancy services agreements
(xiv) Placing of Cash Assignment at the disposal of Station Headquarters for payment of ECHS bills
and carrying out the post audit of their paid vouchers.
CONTINGENT AND MISCELLANEOUS CHARGES
The primary check over contingent expenditure is exercised by the executive authorities.
Contingent and miscellaneous charges will be audited in accordance with the general rules for the
audit of cash expenditures as given in Defence Audit Code.
To avoid double payments, recurring charges will be linked with the previous charges and audited.
Exception: Telephone bills of Units and Formations duly checked, countersigned and accepted by
the administrative authorities need not be linked with previous charges.
With the introduction of EDP system, allotments pertaining to Locally Controlled Heads are sent to the
Accounts section for entering in their office automation system and thereafter, the Certificate with
regard to availability of funds is furnished by the Accounts Section as and when bills are received
from the Audit Sections.
A register will be kept in I.A.F.A. 514 for the record of miscellaneous non-recurring charges.
CHARGES FOR GROUND RENT AND LAND COMPENSATION
Charges for ground rent and for compensation for land taken up for military purposes will be audited
under the general rules laid down for the audit of cash expenditure.
Payments on this account will be made with reference to the conditions noted on the lease
agreements entered into by the authorities concerned. The lease agreements will be recorded in a
separate guard file maintained for the purpose.
CONTINGENT AND MISCELLANEOUS EXPENDITURE OF MILITARY ATTACHES/ADVISERS
ABROAD
On finalization of budget estimates, the M.I. Directorate, Army Headquarters will intimate Military
Attaches/Advisers about the allotments made to each of them to meet contingent and miscellaneous
expenditure for the year, in the same manner as for other formations in India. A copy of this intimation
will be endorsed to the PCDA, New Delhi for watching the progress of expenditure in internal audit.
Debits on the above account will be raised by the CGA (Directorate of Audit Central Revenue) against
PCDA, New Delhi who will audit and adjust the charges.
CONSERVACNY AND HOT WEATHER ESTABLISHMENT CHARGES
Allotment of funds to meet conservancy and hot weather establishment charges is made under the
following heads;
 Conservancy charges
 Hot weather charges
 Administration of non-cantonment stations
The funds for the purpose are distributed by Army Headquarters to Commands and through them to
Areas and Sub-Areas.
The Sub-Areas distribute the funds to the Os.C. Stations, who in turn may distribute the allotment to
units and formations.
The bills in respect of conservancy and hot weather charges are preferred to the PCsDA/CsDA
monthly by the Os.C. Stations or Os.C. Units/ Formations to whom the allotment have been
distributed.
Payment for conservancy in respect of military lines in cantonment will be made monthly to the local
cantonment authority in accordance with the agreement made by the O.C. Station, with that authority
after scrutiny of the Annual conservancy agreement.
Where there is a probability of the allotment for a unit or formation or for the station being exceeded,
the PCDA/CDA will warn the O.C concerned in time to enable him to obtain an additional allotment to
cover expenditure in excess of the original allotment.
PETTY RECURRING EXPENDITURE SANCTIONED BY GENERAL OFFICERS COMMANDING,
COMMANDS, AREAS, ETC.
To see that the limits prescribed in, Schedule IV to GoI, MoD Letter no. A/89591/FPI/1974/2006/D(GS-I) dated 26.07.2006 for sanctioning 327 petty recurring expenditure by GOCs-in-C,
etc. are not exceeded, a register will be maintained in which all sanctions will be recorded.
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Command PCsDA/CsDA will watch the sanctions accorded by the GOC-in-C of the Command and for
all Areas and Sub-Areas in the Command.
MISCELLANEOUS CLAIMS IN RESPECT OF UNIT ALLOWANCES
Claims for miscellaneous unit allowances are preferred by Os.C. Units/ formations to the regional
PCDA/ CDA concerned for pre-audit and payment and will not be paid out of imprest unless
specifically authorised.
The payment of these claims will be made by cheques /e-payment mode (whichever is applicable).
Units, etc., stationed in operational/ concessional areas or those located in places where banking
facilities do not exist, will be authorised to make payments out of their imprests after preaudit of their
claims.
The payment authorities, vouchers, etc., should prominently indicate the classification code heads to
which the charges are debitable so that the Pay Accounts Office receiving the imprest accounts
should be able to compile the amounts to the code heads indicated.
The vouchers, etc. in original in such cases will be transmitted by the PAOs to the PCDA/CDA who
authorised the payment.
If however, any such claims are drawn from imprest subject to post-audit (see sub-para.3) they will be
compiled provisionally by the Pay Accounts Offices to the head most affected.
As an exception to the above, condiment allowance is paid out of imprest subject to post audit by the
PCDA/CDA concerned.
The claims of condiment allowance in respect of patients in hospital will be pre-audited.
A list of claims for miscellaneous unit allowances and the audit requirements in connection therewith
are given in Financial Regulations, Part-II. In addition to the general rules for the audit of cash
expenditure, the PCDA/CDA will see that these requirements have been duly complied with.
ACQUISITION AND DISPOSAL OF LANDS AND BUILDINGS BY MILITARY LANDS AND
CANTONMENT DEPARTMENT FOR THE DEFENCE SERVICES
Acquisition of lands and buildings
No payment either in cash or by cheque will be made for compensation to owners on account of
acquisition of land and buildings.
All such payments will be arranged by the civil departments and the amounts debited by them as per
Para 62 of Defence Account Code
Requisition, when received from the Civil Accountants General will be scrutinised in the manner laid
down in Para 100 Defence Account Code.
Disposal of land and buildings
Land and buildings for disposal by M.L. & C. Department may be disposed off either by sale or by
transfer to other departments of the Central or State Governments.
Except as expressly provided otherwise in any rule or order made by the Government, no land
belonging to Government may be sold, or made over to a local authority, private party or institution for
public, religious, educational or any other purpose, except with the previous sanction of Government.
AMENITY GRANTS
These grants are intended for the provision of sports gear, indoor games, literature, radios,
gramophones, gramophone records, musical instruments and anything that helps in the well being
and morale of the soldiers, which is not supplied by Government and which the soldiers cannot
provide for themselves .
The conditions and the rates for the grants and the specific categories of units and formations to
which the grants are admissible are published in Army Instructions every year.
ANNUAL TRAINING GRANT
This grant is intended to meet expenditure incurred in connection with weapon training, manoeuvres,
training camps, tactical exercises with or without troops, staff exercises, training conferences and any
other form or forms of training of the regular Army held under the direction of the Chief of the General
Staff or any Army Commander.
The grant is inclusive of the allowances for field firing stores grants, artillery target grant, and
T.A./D.A. for local courses.
EDUCATIONAL TRAINING GRANT
The grant is governed by the provisions laid down in Appendix 6 of FR Part II.
The scale of grant and the basis on which it is drawn are published from year to year in Army
Instructions.
Note: The unspent balance at the end of each financial year will lapse to the Government.
ASSAULT-AT-ARMS GRANT
This grant is placed at the disposal of the Chief of the General Staff for allotment to the Commandant,
Army School of Physical Training.
Assignment will be arranged for the amount allotted as in the case of training grant allotments but it is
permissible for the allottee to withdraw his allotment from the treasury and place it in a special
account, the unspent 332 balance at the end of the financial year being carried over instead of being
surrendered to Government.
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The audit of charges against the assault-at-arms grant will be conducted under the ordinary rules for
the audit of cash expenditure of a miscellaneous and contingent nature.
FIELD PRACTICE AND TRAINING GRANT FOR THE CORPS OF ENGINEERS
Rules governing the administration of Field Practice and Training Grant for the Corps of Engineers
and the maintenance of the grant accounts are contained in Appendix 2, F.R. Part II.
Allotments in respect of the Field Practice and Training Grant for the Corps of Engineers are made to
Commands by Army Headquarters and the amounts so allotted are distributed to Engineer Groups,
Commander Divisional/Corps Troops/Army Troops or equivalent Engineers.
All payments including those of outstation units forming part of a group will be made by the
PCDA/CDA in whose audit area the Group Headquarters is situated.
The expenditure should be charged in the accounts against the Headquarters of the Group.
PAYMENT AND ADJUSTMENT OF THE COST OF MEDALS AND DECORATIONS AND
CONTINGENT AND MISCELLANEOUS EXPENSES CLAIMS OF THE MEDAL SECTION OF THE
MINISTRY OF DEFENCE
Bills on account of cost of manufacture of medals by the Government of India Mint, Kolkata are raised
against Directorate of Military Regulations & Forms, R.K.Puram, New Delhi.
The Contingent Bills are received in the office of CDA (Army) Meerut duly supported by Mint Invoice
(in duplicate).
One copy of Mint Invoice will be schedule to LAO concerned for linking the store account of Medals
Section.
Allotment of funds for payment of cost of manufacture of Medals will be conveyed by PCDA
(Pensions), Allahabad through an ink signed copy of allocation of funds under head 00/014/39
(Rewards – Army)
Bills on account of the expenditure incurred by the Medal section, Kolkata on account of
contingencies, etc. as well as on account of decoration/inscription charges of medals are dealt with
centrally by the C.D.A (Army), Meerut.
These bills will be audited and paid in the same way as other bills for contingent and miscellaneous
expenditure.
Treasury receipts for amount deposited by the individual/unit/formation into the civil treasury on
account of the cost of duplicate medals replaced on payment are received in the miscellaneous
section of the CDA (Army), Meerut, from the Directorate of Military Regulations & Forms, R.K.Puram,
New Delhi.
The treasury receipts on receipt will be adjusted against the appropriate head of account.
BLANK IMPREST ADVANCES ON I.A.F.F- 1036
Units and formations are authorised to hold imprests for making payment to J.C.Os., O.Rs. and
N.Cs(E).
Units and formations will draw the cash required for the imprest from the field cashiers (where
functioning) or from the PCsDA/CsDA on I.A.F.F. 1036.
In the offices of the PCsDA/CsDA the work connected with the payment of imprest advances will be
centralised in a separate group in Miscellaneous section.
The imprest advances made will be debited to a suspense head (code 0/018/65) and noted in a
special demand register divided into sections corresponding to PAOs; each imprest holder being
allotted a separate page in the appropriate section.
On the last working day of each month, the payments made to Units/formation on Cash Requisition
(IAFF-1036) during the month will be copied from the demand register in one demand intimation
memo (IAFA-524) for each PAO and communicated to PAOs (ORs) concerned (in duplicate) under
registered post so that the demand intimations are received by them by the first week of the following
month.
The entries in demand register will be cleared on receipt of acknowledgements from the PAOs.
The punching medium in respect of imprest payments, in addition to all other information required to
be exhibited therein, also indicate on the top or on the reverse the imprest number of the payee and
the code number of the PAO concerned with a stroke in between.
BLANK RECRUTING OFFICER'S ACCOUNTS
Payments for advances of pay, Ration money, Subsistence allowances and railway fares of recruits
and recruiters are made by recruiting officers (except recruiting officers Gorkhas, Kunraghat, Ghoom
and Laheria Sarai) from permanent advances granted to them for this purpose.
Expenditure incurred against advances will be recouped on submission of detailed bills of expenditure
on I.A.F.A 115 supported by duplicate and triplicate copy of the nominal roll on I.A.F.K. 1168.
On receipt these bills should be checked with reference to the rules in Pay and Allowances
Regulations and Travel Regulations and with monthly returns submitted by recruiting officers of
recruits passed or rejected.
It will be seen that the number for whom subsistence allowances, railway fares and advances are
drawn does not exceed the number shown in the returns.
RECRUITING OFFICERS' (GORKHAS) ACCOUNTS
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Monthly cash assignments are placed by PCDA (CC), Lucknow at the disposal of the Gorkha
Recruiting Depot and Record Office, Kunraghat, for payment on various counts detailed below to
Gorkha personnel of units with which they deal.
Similar assignments are placed by C.D.A. Patna, at the disposal of the Gorkha Recruiting Depots and
Record Offices, Ghoom and Laheria Sarai.
The monthly General State of Accounts wil be rendered by the Gorkhas Recruiting officers to the,
PCDA (CC), Lucknow /CDA, Patna
ACCOUNTS OF THE INDIAN EMBASSY IN NEPAL
An annual assignment, as sanctioned by the Government of India is placed by , PCDA (CC),
Lucknow, at the disposal of the Indian Embassy in Nepal for payment of dues to Gorkha officers and
Gorkha Other Ranks on furlough from Gorkha units.
The procedure laid down in Paras 488 and 489 of OM Pt II will be followed for the adjustment of the
amount.
Audit of the claims for rental buildings hired for the use of military personnel serving in the
Indian Missions/Attaches abroad
Debits on account of rentals made by Embassies (except those by the High Commissioner of India in
U.K.) for accommodation hired in foreign countries for the use of Military personnel serving abroad
will be raised by the CGA against PCDA, New Delhi, who will audit and adjust charges.
The paid vouchers received from the CGA on the above accounts will be subject to post audit.
EX-SERVICEMEN CONTRIBUTORY HEALTH SCHEME (ECHS) General
Ex-servicemen Contributory Health Scheme (ECHS) came into force w.e.f. 01.04.2003 vide MoD
(GOI), letter No. 22(1)/01/US (WE)/D (Res) dated 30th Dec. 2002 with the primary aim of Medicare of
Ex Servicemen and their eligible dependants.
The ECHS Units/Formations will maintain their auditable documents for the post audit by the
concerned LAO/RAO of Regional/Navy/Air Force PCsDA/CsDA under whose geographical
jurisdiction the Armed Forces Clinics and polyclinic falls.
The irregularities/objections, if any, noticed during the local audit will be reported to the respective
Station Commander/polyclinic.
The objections, serious irregularities etc., will be included in the MPR, MFAI, AAC, IAR etc.
PAY SECTION
OBJECTIVES
(i) To pay salary and other dues as per entitlement on due dates.
(ii) To maintain all necessary records, correct and complete in all respects, so as to ensure
that service benefits of employees are correctly paid on due dates.
(iii) To advise Administrative and Executive authorities on matters relating to service
conditions and entitlements of Defence Civilians.
DUTIES
The Pay Section deals with:(i) Payment and audit of all claims pertaining to pay and allowances, other than travelling
and daily allowances, of Civilian Gazetted Officers and establishment paid from the Defence
Services Estimates.
(ii) Payment and recovery of leave salary and pension contributions in respect of Civilian
personnel lent for service to and from Civil Departments of the Central Government and the
various State and foreign Government, statutory bodies, etc.
(iii) Classification of all receipts and payments brought to account through pay bills or other
claims dealt with in the section.
(iv) Audit of annual establishment returns in respect of permanent non-gazetted and Civilian
gazetted officers.
(v) Data capturing task of General Provident Fund contribution in respect of the Non-DAD
Defence civilians through NIDHI software for submission to the office of CDA (Funds),
Meerut.
(vii) Pay section of the PCDA/CDA.s office performs the duties of Principal Accounts Office
and Pay and Accounts Office under the system of National Pension System erstwhile New
Pension Scheme (NPS), in the case of Defence civilians for whom pay and allowances are
paid by them.
PAY BILLS
Civilian officers of the Defence Services
All Civilian gazetted officers paid by the Pay Section are normally required to prepare their
individual monthly pay bills on I.A.F.A.-35.
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The pay bills are to be submitted so as to reach the audit office not later than the 25th of the
month to which they pertain.
On receipt, the Pay bills will be entered in the Bill
Thereafter the bill will be checked in accordance with the instructions laid down in Para 183
and 184 of Defence Audit Code and the drill prescribed in OM Part II
The auditor, after checks, will complete the payment enfacements and the classification
portions of all pay bills.
He will then prepare a punching medium (in duplicate) and submit the bill with all the
relevant vouchers to the AAO/SO (A) for review and submission to the officer-in-charge of
the section.
RENT BILLS
Rent Bills in respect of civilian officers and staff paid by Pay-Section are received along with
top lists from the A.A.O. BSO concerned.
On receipt, they will be examined to ensure that all rent bills shown in the top list have been
received.
One copy of the top list will be returned to the AAO, BSO in acknowledgement of the rent bill
within 24 hours of the receipt
The rent bills will be pasted in the guard files maintained unit-wise in the Disbursement
Groups.
These guard files will form the Demand Registers for rent being marked off as and when
recoveries are affected.
The guard files will be allotted control numbers and will be submitted to the officer in-charge
every month along with list of outstanding.
NO DEMAND CERTIFICATE
No Demand Certificate will be received in and dealt with in the Pay Section.
No Demand Certificate enquires are required to be made by the Principal Controller/
Controller, regarding outstanding in own office.
Such enquires should generally be confined to the PrCA. (Fys) Kolkata, (for any demands
outstanding in the books of his Railway Section) and to the C.D.A., Patna (for any demands
outstanding in the Fund Accounts of the individuals concerned.)
LAST PAY CERTIFICATES AND PAYMENT AUTHORITIES
Officers transferred within India
The last pay certificate issued by the previous audit officer will support the first pay bill of an
officer.
Should, however, a last pay certificate be not forthcoming, pay may be drawn provisionally
on a certificate from the individual stating the date upto which he was last paid, the rates of
pay and allowances and the demands outstanding against him.
Steps will be taken simultaneously to obtain the last pay certificate and to adjust the
provisional payment without delay.
CLASSIFICATION
Each pay bill or other claim will be separately classified by the auditor concerned to the
exact Head of account as given in the Classification Hand Book of Defence Services
Receipts and Charges.
TRANSFER ENTRIES
The Punching Medium in respect of transfer adjustments and Readjustments will be signed
by the officers as indicated below:A) Normal Transfer adjustment .
(i) SO (A) uptoRs. upto Rs.5 Lakh
(ii) AAO uptoRs. upto Rs.25 Lakh
(iii) AO/SAO uptoRs. Upto Rs.1Crore.
(iv) ACDA/DCDA upto Rs.5 Crore.
(v) JCDA/Addl.CDA upto Rs.10 Crore.
(vi) CDA/PCDA exceeding Rs.10 Crore
B) Rectification of incorrect adjustments:(i) AO/SAO uptoRs. 25 Lakh.
(ii) ACDA/DCDA uptoRs. 1Crore
(iii) JCDA/Addl.CDA uptoRs. 5 Crore
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(iv) CDA/ PCDA exceeding Rs. 5 Crore 279
RECORD SECTION
OBJECTIVES OF RECORD SECTION:
(i) To eliminate delays by prompt distribution of inward dak and prompt dispatch of outward
dak.
(ii) To contribute to the efficiency of office by maintaining an upto date library.
(iii) To ensure efficient and upto date "Records Management".
DUTIES OF RECORD SECTION:
(i) to receive, register and distribute inward dak and to prepare weekly outstanding lists
(ii) to dispatch outward dak;
iii) to maintain the office library;
(iv) to indent for, receive and distribute stationery and forms and to keep an account of the
stock of stationery and forms held in its charge;
(v) to receive, list arrange in a methodical manner, and preserve/records in the record room
to destroy time-expired records;
(vi) to procure, distribute and correct Books of Regulations, Army Instructions, Army Orders,
etc.;
(vii) to arrange for printing of forms, etc.
INWARD DAK
Receipt, opening and sorting
 The Records Section will take delivery of all post addressed to the office
 Unregistered covers will be opened by one or more MTS in the presence of the dak
sorter.
 Registered covers will be opened by a Clerk under the supervision of the AAO/SO
(A).
 Each document will be stamped with the office date stamp.
 SECRET OR CONFIDENTIAL:
o The AAO/SO (A) will collect inner covers marked secret or confidential,
o Enter the particulars thereof (viz., number, date and office of dispatch as
noted on the outside of such covers) in a transit book
o Personally hand over the transit book along with the covers to the officer-incharge of the Administration Section, who will initial against the entries in the
transit book in token of receipt of the covers.
 The dak will be sorted out into separate trays for the various Sections
 Disputes, if any, regarding the particular Section to which a letter pertains will be
decided by the Officer-in-Charge of the Record Section.
 Any communication addressed to an outside party, but wrongly received in the Office
will be transmitted to the correct party under advice to the sender by the Record
section
Registration
 Letters - After sorting all letters will be diarized Group-wise in I.A.F. (C.D.A.) - 239 in
duplicate.
 Bills- All bills will be diarised Group-wise through computer vide Office Automation
System (wherever available). The DAK ID for each bill will be generated by the
System and the bills will be distributed
Note: - All bills irrespective of their nature will be received only in the Record.
 Valuable documents- Valuable documents, viz., G.P. notes, fixeddeposit receipts,
post office cash certificates, cheques, drafts, sheet rolls,long rolls, medical history
sheets, records of service, indemnity bonds,insurance policies, court attachment
orders and other documents of a legalnature, will be diarized in duplicate in a
separate “Register of ValuableDocuments”.
 Armed Forces signals:- These will be diarised in I.A.F. (C.D.A.)- 239in a separate
register in duplicate.
 Reminders and complaints:- Reminders and complaints, whethermarked as such
or in the form of a letter, will be collected by the Recordsection from the dak and sent
to the C.D.A., J.C.D.A. and the Officer-in-Charge of the section concerned. On
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receipt back, they will be diarised induplicate in I.A.F. (C.D.A.)-239 in two separate
registers, one for thereminder and the other for complaints.
Special dak- Important communications from the Government ofIndia, C.G.D.A.,
Army Headquarters, etc., will be sent to the C.D.A., J.C.D.A.and D.Cs.D.A. for
perusal. On receipt back, they will be diarised in duplicatein I.A.F (C.D.A.)-239 in a
separate register.
DAK from CGDA’s office - All covers received from theOffice of the CGDA New
Delhi are handed over to AN Section for its diarsingand distribution.
TOP SECRET, SECRET AND CONFIDENTIAL DAK:o Top secret papers mustat all times and in all stages remain in the personal
custody of the Officerdealing with them.
o They are addressed byname to the Officer for whom they are intended.
o Top secret letters anddocuments received by an officer other than the Head of
the Office will bebrought to the latter's notice
o He will have them diarised in a separate diary.
o The diary in respect of all top-secret documents and letters should besubmitted
for perusal by the Head of the Office every month.
Demi-official communications:-Demi-official letters addressed tothe PCDA/CDA
and the Addl.CDA/J.C.D.A., will be diarised and distributedby the Administration
section.
DISTRIBUTION
 Special dak, signals, reminders and complaints will be handedover together with
duplicate diary sheets to officer-in-charge of thesections
 Secret and confidential letters will be handed over personally bythe officer-in-charge
of the Administration section or as decided by him
 Valuable documents will be handed over tothe cashier or the AAO/SO (A) of the
section concerned
 Other dak along with duplicate copies of the diary sheets will behanded over to the
senior AAO/SO (A) of the section concerned, whowill arrange to send the dak to the
respective officer-in-charge of theGroups.
After the dak has been seen by the latter, the senior AAO/SO(A) will hand it over to
the group AAO/SO (A)
MARKING DISPOSAL
Disposal of letters, etc., will be marked in the section records underthe initials of the dealing
clerk concerned. The AAO's/SO (A) of the section will note thenumbers maintained by the
Administration Section for secret andconfidential letters.
PREPARATION OF OUTSTANDING LISTS
 The outstanding lists in respect of secret and confidential dak will beprepared weekly
on every Friday by the Administration section in duplicate.
 The lists will marked and returned to the Administration Section
 The Administration section will intimate to Record section the totalnumber of
outstanding secret and confidential letters
 As regards letters other than secret and confidential, the outstandinglist will be
prepared by each section and submitted to the officer-in-chargefor information.
 A report of outstandingswill be submitted to thePCDA/CDA, every Wednesday or
earlier.
OUTWARD DAK
Dispatch
The Record section will: Dispatch all outward letters, signals and registered and insuredparcels;
 Maintain dispatch registers
 Keep stock of service labels and maintain a stamp account
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Secret and confidential covers are treated as "important" and evenwhen they are not
sent by registered post, they should be entered in thedispatch register.
A register for the dispatch of secret and top secret correspondencewould be
maintained by the PCDA/CDA or Officer-in-Charge of theAdministration Section and
this register should be kept under lock and key.
Papers bearing security classification dispatched from the officeshould be placed in
double covers, the inner one (which should be sealed)only being marked "secret" or
"confidential" and superscribed with the nameor designation of the addressee and
the number and date of thecommunication enclosed therein, on the top left hand
corner, and thedesignation of the office of origin in the bottom left hand Corner, the
outerone should be addressed in the ordinary manner.
Different letters for the same addressee shouldnormally be sent in one cover.
LIBRARY
 A central library of Books ofRegulations will be maintained for reference.
 The Officer-in-charge of the Record Section will be responsible forseeing that all
books in the library are catalogued
STATIONERY AND FORMS
 An annual indent on S.O. 154 for articles of stationery required foruse during the
following year will be sent so as to reach the Controller ofPrinting and Stationery,
Kolkata, on or before 2nd January of each year.
 Theindent will be prepared in accordance with the scales given in Appendix "B"of the
"Rules for the Supply and Use of stationery Stores"
 On receipt of a consignment of stationery, the contents of each parcelwill be carefully
verified by the AAO/SO (A), Record Section.
 Sub-offices of PCsDA/CsDA such as Local Audit Offices, Pay AccountsOffices, etc.,
are not authorized to place indents direct on the Controller ofPrinting and Stationery.
 Local Purchase of stationery items may be made as per the extantorders provided by
the Govt. vide General Financial Rules 2005 and DFPR-1978
 A monthly account of receipt and issue of each article of stationerywill be kept by the
stationery clerk on Form S-41
 All articles of stationery will be kept under lock and key in a suitableplace where no
deterioration can occur.
 Stationery will ordinarily be issued to the office establishment once amonth on
demands (O.F. 1615) signed by AAO/SO (A) of sections
 The clerk in charge of forms will be responsible for the safe custodyand maintenance
of a sufficient stock of all forms.
RECORDS AND RECORD ROOMS
The Officer-in-charge of the record room will be responsible to seethat(i) all records under his charge are duly indexed and labeled;
(ii) no files, registers or documents of any kind lie on the floor,
(iii) a proper up-to-date register is kept of all records issued to andreceived back from
section;
(iv) indents and requisitions for records are promptly complied with.
(v) regular calls are made for the return of records issued tosections:
(vi) the records and racks are kept clean and free from dust and arenot damaged by vermin
or white-ants;
(vii) no smoking or naked lights are allowed in the record room; and
(viii) the water and sand buckets provided as a fire precaution arekept filled and the water in
the buckets is changedperiodically.
Preservation and destruction or disposal of records
 The instructions to be followed for the preservation and destruction ordisposal of
records, including old editions of books of regulations are laiddown in Office Manual
I.
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The periods for which the various kinds of recordsare to be kept are laid down in
Annexure A, B,C,D, E & F of Office Manual II.
STORES CONTRACT SECTION
OBJECTIVES
(i) To make prompt payment for supplies and services rendered by the contractors.
(ii) Payment of Cash Requisitions to S & S Imprest holders and adjustment of S & S Imprest
accounts summary
(iii) Post audit of bills in respect of 100% payments made by the units.
(iv) Audit of sanctions issued by the lower CFAs (other than Govt. of India).
Stores contract section deals with work pertaining to all types of contracts, viz.,
A.S.C., Ordnance, Medical, EME Workshops, Information Technology stores, Capital
Acquisition etc. and Ration money bills in respect of Army Officers etc. except M.E.S.
Contracts and misc. contracts like messing Contracts at Selection Centers, hair cutting and
washing contract and conservancy agreements which are dealt with in the Engineering and
Miscellaneous Sections respectively.
DUTIES
The duties of Stores Contract Section are:(i) to scrutinise completed contract agreements and amendments therof, cases of
enhancement of rates, extension of contracts, etc;
(ii) to audit and payment of claims in respect of supplies made or services rendered;
(iii) to schedule local purchase vouchers/ inspection notes and duplicate copies of transport
indents etc., to L.A.Os, for verification of credits and to watch their return;
(iv) to deal with all work connected with the receipt and refund of security deposits of
contractors;
(v) Post audit of bills in respect of 100% payments made on account of ASC articles and
CHT
(vi) Payments to S& S Imprest holders 352
VERIFICATION OF SPECIMEN SIGNATURES IN CASE OF GOVT. SANCTIONS FOR
PURCHASE OF STORES ISSUED BY MINISTRY OF DEFENCE INCLUDING D.D.P.S.
AND D.R.D.O.
(i) In respect of each Jt. Secretary wing of the Ministry of Defence including Department of
Defence Productions and Supplies and DRDO, a Nodal Officer will be nominated by the
concerned Jt. Secretary who will send Specimen Signatures of all Officers of the wing i.e.
Desk Officers, Under Secretaries, Dy. Secretaries, Directors and Jt. Secretary of that wing
who are authorised to sign. the Govt. sanctions involving Defence Expenditure, to the Pr.
CDA, New Delhi and other PCsDA/CsDA of Defence Accounts concerned who are required
to Audit and pass the claims with reference to the said sanctions. In case of any subsequent
change in any of the incumbents in the wing, immediate amendment to the list of specimen
signatures shall also be sent to Pr. CDA, New Delhi and other PCsDA/CsDA concerned by
the Officer.
(ii) A monthly list of all Government sanctions issued by each Jt. Secretary wing under the
Ministry of Defence including Department of Defence Production and Supplies & DRDO,
authorising incurring of expenditure, shall be sent by the Nodal Officer of each wing to Pr.
CDA, New Delhi and other PCsDA/CsDA concerned so that they are precluded from
accepting in Audit and making payments on any other sanctions stated to have been issued
by Ministry of Defence.
(iii) Before acting upon Government sanctions for expenditure issued by Ministry of Defence
including D.D.P.S and D.R.D.O and passing the claims with reference to said sanctions, an
Audit Officer must satisfy himself that:(a) Signatures it bears have been verified with reference to specimen signatures forwarded
to him by the Nodal Officer nominated by the Jt. Secretary of the concerned wing of Ministry
of Defence and;
(b) Sanction so acted upon is included in the Monthly list of Govt. sanctions received from
Nodal Officer.
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(iv) Any claim or bill for which sanction for expenditure is signed by a person other than so
authorised signatory and/or not included in the Monthly list of Government sanctions issued
received from the nominated Nodal Officer and vice-versa, should be precluded from
accepting in Audit and immediately be brought to the notice of higher authorities.
(v) A register of specimen signatures in respect of countersigning and sanctioning
authorities of bills and Imprest Holders will be maintained by the store contract section.
SCRUTINY OF COMPARATIVE STATEMENT OF TENDERS
The following points will be observed in dealing with comparative statements of tenders:(i) that they are in conformity with rules in F.R. Part I and Defence Procurement Manual as
amended from time to time;
(ii) that no local purchase of stores is arranged, supplies of which are made or required to be
made by a central purchasing authority, except with the concurrence of that authority;
(iii) that in case of combined tenders for vegetables, potatoes, etc., the tender
recommended for acceptance is the lowest taking into account the rate quoted against each
such article;
(iv) that the treasury receipts on account of cost of tender form issued to contractors have
been received
REGISTER ON THE WORKING OF CONTRACTS
A copy of Contract documents are received from the Executive Authorities for scrutiny of
contracts. With a view to enable the PCsDA/CsDA to offer financial inputs regarding
contracts submitted to them by the administrative authorities, a register on the working of
contracts will be maintained in manuscript (in the form given in volume II of this Manual)
wherein will be recorded special points of interest which come to notice in the working of
contracts, such as difficulties caused in the interpretation of the terms of contracts, etc. Short
notes will also be kept in this register of all events which in the opinion of the PCDA/CDA
might affect the suitability of a contractor to hold a contract.
SCRUTINY OF CONTRACTS
The fundamental principles to be observed in connection with the conclusion of contracts
are laid down in the relevant rules in F.R. Part I, A.S.C. Training Volume-II and DPM as
amended from time to time.
It should be seen during the course of scrutiny that the authority sanctioning the contract as
far as possible observed, the general principles applicable to contracts set forth in the above
Regulation.
CONTRACT SCHEDULES
As soon as contracts are concluded, the executive officer (viz., M.G.A.S.C., D.D.S.T etc.)
will send the originals of of I.A.F.Z.-2137A, 2120 and 2121 or in the case of transport
contracts, photocopied/xeroxed schedule attached to I.A.F.Z.-2121-A (special conditions)
together with certified true copies of those forms and security deposits, to the PCDA/ CDA
who will return the original forms after comparing them with the certified true copies. It will be
seen that necessary security deposits have been obtained under the terms of Rule 206 F.R.,
Part I.
The certified true copies of the contracts will be kept in the personal custody of the AAO/SO
(A) concerned, if they are not classified documents.
Where the contracts are classified documents they will be kept in the personal custody of
the Officer-in-charge. These will be recorded in volumes of convenient size, duly indexed
and bound, to serve the purpose of the "register of sanctioned tenders".
Payments by cheques/electronically will be made through the officer who received the
stores for which payments is being made.
To facilitate epayments mandate form as per DPM-11, DPM 2009 duly indicating Bank 356
account number and other details may be obtained from each contractor/ firm and be kept in
the guard file.
CONTRACTOR’s BILLS
Classes of Contractor’s bills
Contractors’ bills are divided into two classes which are as follows:(i) bills for stores purchased locally for stock in supply or store depots and for direct delivery
to consuming units.
(ii) bills for hired transport including carriage of personal baggage on transport indents and
of military passengers and their baggage on the authority of road and river warrants.
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Local purchase of A.S.C. articles
(i) Central purchase supplies 509. Local purchase of central purchase supplies by A.S.C.
officers is permissible under the circumstances laid down in Para 51 sub-Paras, (a) and (b),
A.S.C. Regulation and A.S.C. Training Volume II, Chapter VI, Section 51, Sub- Section 2. All
such purchases of central purchase articles are to be reported to A.H.Q., Q.M.G.'s Branch
with reference to note to Para 1(a), Appendix V, F.R., Part I, Vol II. 357
(ii) Local contract supplies 510. These are enumerated in Para, 50 A.S.C. Regulations.
These supplies are procured through local contracts/short term agreements which are
sanctioned by the authorities mentioned in Appendix V, F.R., Part I Vol-II as amended from
time to time.
PAYMENT OF CONTRACTOR’S BILLS
Contractors’ bills should be paid as soon as possible. When the audit of a bill is completed,
the auditor concerned will enter the necessary particulars in columns 1 to 6 of the register of
payments to local purchase contractors (I.A.F. (C.D.A.)-153) and submit the register and the
bill to his AAO/SO (A) who will, after exercising all the necessary checks thereon, submit
them to the officer-in-charge of the section for scrutiny and approval.
The AAO/SO (A) will, after check, initial (with date) in column 7 of the register and at the
same time approve the payment endorsement on the bill.
The bill will then be forwarded to Disbursement Section through the daily payment sheet
(I.A.F.A.-728) duly supported by the cheque slips (I.A.F.A (C.D.A.) 223.)
Bill/Claim contingent bill No. (as the case may be) together with the amount claimed and
passed should be indicated on the cheque slip, so that it is possible to know that the
proceeds of the cheque relate to a particular bill/claim etc.
Where the proceeds of the Defence Cheques are required to be credited to the personal
account of an individual, the individual’s name together with the amount and the bank
account number should invariably be indicated on the cheque slips.
ADVANCES
Advances paid to A.S.C. or other departmental officers for local purchase of stores, or for
payment to the civil authorities for supply of stores and carriage of troops on the line of
march, should be noted in the demand register.
When bills are received for adjustment of these advances it should be seen that they are
duly endorsed with the number and date of the cheque by which that advances was paid,
and a corresponding entry made in the demand register after the usual audit check.
SECURITY DEPOSITS Forms of security deposits
ecurity deposits should be tendered in one of the following forms, subject to the conditions
noted against each or partly in one and partly in another of these forms when this is
specially permitted by the authority authorized to accept the security:Form of Deposit Conditions
(i) Cash Government will not pay any interest on any deposit held in the form of cash.
(ii) Government Promissory Notes, Municipal debenture or Port Trust Bonds. These
securities should be accepted at 5 %, below the market price or at the face value whichever
is less, and should be dealt with in accordance with the rules in chapter IX of the
Government securities Manual.
(iii) Treasury Savings Deposit Certificates and National Plan Certificates. These certificates
should be accepted at their surrender value.
(iv) Post Offices Savings Bank Pass Books. A pass book for deposits made under the
savings banks rules may be accepted as security provided that the depositor has signed
and delivered to the Post-Master a letter in the prescribed form as required by these rules.
(v) Post Office Cash Certificates, Defence Saving Certificates and National Savings
Certificates. The certificates should be formally transferred to the departmental authority
which takes the deposit with the sanction of the Head Post- Master and should be accepted
at their surrender value at the time of tender.
(vi) Deposit receipts of the State Bank of India (1) The deposit receipt should be made out in
the name of the pledgee or if it is made out in the name of the pledger, the banks should
certify on it that the deposit be withdrawn only on the demand or with the sanction of the
pledgee.
REFUND OF SECURITY DEPOSIT
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On the expiry of a contract and after fulfilling all undertakings, the refund/release of a
security deposit will be made to a contractor on the production of a no demand certificate
(I.A.F.A.-45) duly completed in all respects. Before the refund is actually made, it will be
ascertained from the A.S.C. or other departmental officer concerned as well as from the
demand register that there are no demands outstanding against the contractor.
The necessary entries will be made in the security deposit register (I.A.F.A.-525 or I.A.FA.285, as the case may be) and initialed by the officer-in-charge of the section.
POWER OF ATTORNEY
Refunds of security deposits and payments in respect of bills, interest, etc. will be made only
to the contractor or agent concerned; but such refunds and payments may be made to
another party, if such party has been granted full and legal power of attorney, probate or
letters of administration, etc., authorising him or her to receive any security deposits money,
etc. due to the original contractor or agent.
Particulars of all powers of attorney, probates, etc., should be noted in the register of
sanctioned tenders and the register of security deposits.
PAYMENT OF INTEREST ON MUNCIPAL DEBENTURES, etc.
The procedure laid down in Rule 223, F.R., Part I, will be followed.
LAPSED SECURITY DEPOSITS
At the close of each official year, all cash security deposits remaining unclaimed for three
years, exclusive of the year in which the deposit was made, and all balances of security
deposits of not more than one rupee in amount, will be transferred to the credit of
Government under the appropriate head by the PCDA/CDA in whose books the amounts
appear, a note of the transfer being made against the entry in the register of security
deposits.
In case of cash security deposits, the PCDA/CDA will inform the administrative officer
concerned, in order that the latter may make the necessary entries of such transfers in his
registers. Sums credited to Government as above will not be refunded without the sanction
of the PCDA/CDA, who will authorize payment on ascertaining that the amount was really
received and carried to the credit to the Government as lapsed and that the claimant's
identity and title to the money are certified by the officer signing the application for refund.
RATION ALLOWANCE
Service Officers are entitled for issue of free ration in kind in the peace area.
However, in the following contingencies they are entitled for payment of cash allowance in
lieu of free rations which will be subject to audit and payment:
a) Annual leave
b) Sick leave on full pay and allowances
c) Duration of casual leave which is spent away from his duty station.
d) Preparatory leave while on permanent posting
e) LPR
f) Course of instructions on posting to non-military station g) Furlough leave h) Maternity
leave i) Special casual leave j) Study leave in India
S&S IMPREST
Supply and Service Imprest may be provided to all units/ formations including Supply Depot.
The S & S imprest account showing therein the expenditure incurred from1st day to last day
of the month should reach the PCDA/CDA’s office by the 10th of the following month to
which these pertains.
MILITARY FARMS General
Cash assignments for Military Farms are made in favour of Assistant Directors, Remount,
Veterinary and Farms, and they make payments by cheques drawn against their
assignments and render cash accounts to the PCDA/CDA concerned as laid down in
R.V.F.C. Regulations.
Cash accounts and monthly returns prepared by the staff of the farm are due in the
PCDA/CDA’s office on the 10th of the month following that to which they relate and should
be sent through the Assistant Director, Remount, Veterinary and Farms concerned.
The progress of audit of cash accounts of Remount Depots and Farms and the clearance of
objections raised thereon will be watched through an Audit Register (I.A.F.A.-473).
The following accounts, reports and returns relating to Military Farms are received in the
PCDA/CDA’s office and are dealt with in the prescribed manner:- (i) Cash account (I.A.F.
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(D.F.) - 16) (ii) Capital account (I.A.F. (D.F.) - 25), (iii) Coupon account (iv) Renewals
reserve fund account (v) Annual account.
REMOUNT DEPOTS
Officer-in-charge of Remount Depots is granted assignments on treasuries.
Payments are made by cheques drawn against such assignments and monthly cash
account rendered to the audit office.
The cash accounts are required to be accompanied by the schedules and other documents
referred to in R.V.F.C. Regulations and also Paras 364 and 365 Defence Audit Code.
The monthly cash accounts are due in the PCDA/CDA’s office on the 10th of the month
following that to which they pertain.
On receipt in the Stores Audit Section, they should be classified under the various heads
and sub-heads of classification and a punching medium prepared in duplicate by carbon
process on I.A.F. (C.D.A.)-336.
The original copy of the punching medium will be sent to EDP Centres by the 5th of the
succeeding month and the duplicate pasted on the cash account to serve as a record of
classification.
The general rules for the audit of cash expenditure are applicable to these cash account.
Sale of chargers
The procedure regarding recovery of value of horses supplied to high officials is laid down in
Para 129, Defence Audit Code.
BAKERIES
Bakeries prepare monthly account on I.A.F.S. - 1557 and submit them together with all
supporting receipt and issue vouchers to the C.D.A's office for audit by the 12th of the month
following that to which they relate.
Stores Audit Section will audit these accounts and record the necessary details of
ingredients, etc.
The figures in the proforma will be utilized for working out the recovery rate of bread and for
checking the production account at the end of the year.
BLANK PRICING OF PAYMENT ISSUE VOUCHERS, LOSS STATEMENTS, SERVICE
TRANSPORT INDENTS, ETC., AND ADJUSTMENT OF COST THEREOF
The “Pricing party” (i.e.,PCDA/ CDA, LAO, or Executive) for pricing of vouchers, loss
statements, service transport indents, etc, in various Army units/formations is laid down in
Store Accounting Instructions.
Payment issue vouchers which are required to be priced by the PCDA/CDA are received in
Stores Audit Section for pricing.
The vouchers, after pricing, will be returned by the Section to the unit or formation from
whom they were received.
The LAOs will in all cases of payment issues made to other than individuals on cash
payments , prepare and forward to the PCsDA/CsDA payment issue schedules (I.A.F.
(C.D.A.)-615) in respect of all payment issue voucher (irrespective of the "pricing party") by
the 10th of the month following that to which the transactions pertain.
Service transport indents
The cost of service transport provided to M.E.S. formations and Military Farms is required to
be assessed in order to take the same in the accounts of works or the Military Farms
concerned.
For this purpose, the indents in respect of transport provided to M.E.S. formations are priced
by the A.Os.
In respect of transport provided to Military Farms, the indents are received in triplicate from
the Station Transport Officer. They will be priced at the rates notified for the purposes in
Army Instructions or Government orders issued from time to time.
AUDIT OF SALE ACCOUNTS RELATING TO SURPLUS, OBSOLETE AND WASTE
STORES
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The responsibility for the disposal of items of surplus and obsolete stores not exceeding the
sum of Rs. 5000, in value in any single category and of all waste stores, i.e., salvage scraps
regardless of value has been vested in the Ministry of Defence.
CUSTOMS DUTY CHARGES
 Audit and adjustment of bills in respect of custom duty levied on Defence Stores
shall be carried out by the regional PCDA/CDA in whose audit area the Port of
Embarkation is located with the exception of the bills for stores landed in Kolkata
Port, which will be dealt with by the PC of A (Fys) Kolkata.
 Similar action on bills of custom duty in respect of Naval Armament stores
(Explosive) which are cleared by the Naval Armament Supply officer and stores
imported for HAL (both for production and overhaul programmes) will be taken by
PCDA (Navy) and PCDA (Air Force) respectively.
CENTRAL PURCHASE OF STORES IN INDIA
Payments for the cost of stores purchased centrally in India for supply to the Defence
Service against contracts placed by the Purchase Organization of the Ministry of Works,
Housing and Supply and the Ministry of Food and Agriculture are made by the respective
Pay and Accounts officers.
PAYMENTS IN RESPECT OF THE M.E.S.
The payments in respect of the M.E.S. will also be adjusted by Stores Audit section.
There are mainly three different kinds of payments made to contractors by the pay and
Accounts officer, viz:(i) Final 100 percent payments;
(ii) Advance 95 percent payments and connected balance 5 percent payment.
Advance 95 percent payments are made on contractor's bill (form W.S.B.-116) duly
complete.
(iii) Advance 100% payment.
 In respect of 100 percent advance payments made to contractors, the C.D.A. will be
responsible for collection of the receipted copies of inspection notes (copy No. 5)
from the consignees.
 The consignee’s receipts as soon as received will be carefully examined and
shortages and discrepancies in the quantities of stores as proposed by the
consignees intimated to the pay and accounts Officer concerned for taking steps to
effect recoveries from the contractor.
ADJUSTMENT OF TREASURY RECEIPTS
Treasury receipts in respect of the following transactions are also received in the Stores
Audit Section. The treasury receipts will be adjusted in the manner laid down in the chapter
on the Accounts Section.
(i) Hospital stoppages rolls in respect of non-entitled Personnel admitted into hospitals.
(ii) Recoveries made on account of losses of stores.
(iii) Recoveries made on account of hire of Government transport for amenity purposes.
(iv) Recoveries of hire charges for issue of Ordnance stores on hire.
RECOVERY OF EXTRA EXPENDITURE INCURRED BY THE DEFENCE SERVICES IN
CONNECTION WITH AID TO CIVIL POWERS
 When troops are called out in aid of civil powers during occasions like famine, earth
quake, floods, strikes etc., statistics of extra expenditure and loss of revenue will be
maintained by Store Audit Section.
 When a demand for aid is received by the Defence Authorities, HQrs of Commands
will allot a nickname to the aid and furnish the same to the PCDA/CDA concerned
together with completed details of the nature of the aid.
 Recovery of expenditure incurred by the Defence Services in connection with a
particular aid to Civil Power will be affected centrally by the Regional PCDA/CDA in
whose audit area the aid is rendered regardless of the fact that the expenditure in
respect of the aid might have been incurred by other PCsDA/CsDA.
ADJUSTMENT OF CLAIMS FOR LOSS OF STORES IN TRANSIT
 When a claim on the railway authorities for loss of stores in transit has been
accepted, a copy of the acceptance letter from them indicating the total cost
accepted is received from the consignee in the PCDA/CDA's office. Debit for the
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amount will be raised against the railway Accounts Officer concerned through the
CGA, New Delhi duly supported by a copy of the acceptance letter and credit taken
to the relevant store head of account.
 In respect of imported stores, except Naval armament stores (explosives), a copy of
the claim on account of stores short landed/damaged will be received from the
Embarkation Commandant by the PCDA/CDA in whose area the Port is located for
watching the progress of the claim.
 The amounts recovered from the shipping companies will be credited into the
treasury on Military Receivable Orders.
 The treasury receipts will received by the PCDA/CDA and adjusted by him finally in
his books to the appropriate receipt head.
 As regards Naval armament stores (explosives), a copy of the claim will be received
by the PCDA (Navy) who will be responsible for watching the progress thereof.
 The treasury receipts for the amounts recovered will also be adjusted by him.
FINANCIAL REVIEW OF THE WORKING OF MANUFACTURING ESTABLISHMENTS
 In order to enable the Financial Adviser, Defence Services to submit to the
Government of India, his annual financial review of the working of the various Army
manufacturing concerns, the LAOs concerned will, as soon as the annual accounts
of the concerns are ready, compile a critical review and forward the same to the
PCDA/CDA so as to reach him before 1st October each year.
 The PCDA/CDA will send his report to the D.F.A. concerned so as to reach him on or
before 26th October endorsing a copy to the CGDA.
 The report should be so framed, as to give an intelligent account of the working of
the concerns during the year
TRANSPORTATION SECTION
OBJECTIVES
To make prompt payment of entitled Travelling Allowances to Defence Personnel/Civilians
paid out of Defence Service Estimates.
DUTIES
(i) To pay advances of travelling allowance admissible under rules and to watch their
adjustment or to communicate them to the audit officer concerned for adjustment;
(ii) to deal with the claims for travelling allowance (including conveyance allowance) and
those for the transportation of personal effects of Services personnel of the Army, Navy and
Air Force and civilians paid from the Defence Services Estimates;
(iii) To deal with claims for transportation charges debitable to the annual training grant;
(iv) to deal with claims for daily allowance of Service officers undergoing courses of
instructions;
(v) to audit road and river warrants and to deal with claims for road and river journeys when
warrants are not issued;
(vi) to audit and pay sea passage claims of shipping companies;
(vii) to audit and pay passage allowance claims under, Travel Regulations ammended from
time to time;
(viii) to deal with air passage and air freight claims;
(ix) to audit expenditure relating to concessions admissible to Defence Services officers for
railway journeys while travelling on leave at their own expenses;
(x) to deal with training camp allowance claims of Territorial Army and NCC Officers;
(xi) to audit travel concession claims of civilian Government servants availed of during
regular leave;
(xii) to audit T.A. claims of civilian Government servants on retirement.
Note: The term „travelling allowances‟ as used in this chapter includes mileage and daily
allowances.
VERIFICATION OF SPECIMEN SIGNATURES IN CASE OF SANCTION FOR
EXPENDITURE ISSUED BY MINISTRY OF DEFENCE INCLUDING DDPS AND DRDO
Specimen Signatures
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
In respect of each Jt. Secretary wing of the Min. of Defence including Deptt. Of
Defence Production and Supplies and DRDO a Nodal Officer will be nominated by
the concerned Jt. Secretary who will send Specimen Signatures of all officers of the
wing i.e. Desk Offices, under Secretaries, Dy. Secretaries, Directors and Jt.
Secretary of that wing who are authorized to Signature the Govt. sanctions involving
Defence expenditure, to the Pr. CDA New Delhi and other Controllers of Defence
Accounts concerned who are required to audit and pass the claims with reference to
the said sanctions.
Monthly list of all Govt. sanctions
 A Monthly list of all Govt. sanctions issued by each Jt. Secretary wing under the
Ministry of Defence including Deptt. Of Defence Production and Supplies & DRDO
authorizing incurring of expenditure, shall be sent by the Nodal Officer of each wing
to Pr. CDA New Delhi and other controller concerned so that any other sanctioned
stated to have been issued by Ministry of Defence are precluded from accepting in
audit & making payments.
AUDIT OFFICES DEALING WITH TRANSPORTATION (INCLUDING CONVEYANCE
ALLOWANCE) CLAIMS:
Category of Personnel
Name of the audit office
(i) Officers of the Army (including Territorial Army) and PCDA (Officers), Pune
Civilian gazetted officers serving with units and formations
located in Operational Areas.
(ii) JCO's, Other Rank and Non-Combatants (Enrolled) of PAO of the Corps or Regiment to
the Army (including Territorial Army), and Civilians which the individual, belong.
serving with units and formations located in Operational
Areas.
(iii) Officers, other ranks and Civilians of the Navy.
PCDA (Navy), Mumbai
(iv) Officers, other ranks and Civilians of the Air Force.
PCDA (Air Force), Deharadun
(v) Civilian personnel employed in Ordnance and Clothing PC of A (Factories) Kolkata
Factories and the Directorate General Ordnance
Factories.
(vi) Non-official members appointed to Committees, Area Accounts Office (Pay),
Commissions, and Boards of enquiry set up under the Western Command, Delhi Cantt.
orders of the Government.
Note 1: Claims relating to road mileage allowance of JCO's and Other Ranks and rail fare to
recruits under Rule 193 (b) Travel Regulations are dealt with by the PAO concerned
Note 2: Claims relating to railway warrants, credit notes and concession vouchers in respect
of Defence Service personnel (JCOs/ORs) are dealt with by the PCDA/CDA concerned PAO
(ORs) of the Corps/ Regiment to which they belong.
Note 3: Claims relating to air passage of Army personnel and air freight on stores Ex-India
are dealt with by PCDA, New Delhi. Similar claims in respect of Air Force and Navy are dealt
with by PCDA, Air Force and Navy respectively.
Note 4: Claims for daily allowance of officers undergoing courses of instruction at authorized
schools of instructions are dealt with by the Regional PCsDA/CsDA.
ADVANCES OF TRAVELLING ALLOWNACE
The general principles relating to the grant of advances to Government servants governed
for purposes of T.A. by the Supplementary Rules are contained in Rule 82 to 85 of
Compendium of Advances, 2005; so far as officers and others to whom Travel Regulations
apply are concerned, the relevant orders are contained in Rule 17 thereof.
Officers and others who are eligible to draw travelling allowance may be granted an
advance of such allowance, to the extent admissible under rules, when proceeding on
temporary duty to an out-station or when permanently transferred to another station.
Administrative officers and others who proceed on tours of inspection regularly may draw an
advance sufficient to cover their tour expenses, from the PCDA/CDA concerned which may
not only include rail fares but also road mileage and daily allowance calculated with
reference to such information as is available at the time.
In case of T.A. admissible on retirement, an advance of T.A. may be sanctioned by the
authority competent to sanction such advances in cases of journeys performed during leave
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preparatory to retirement or during refused leave but not in cases of journeys performed
after the date of retirement.
Advances of T.A. will ordinarily be drawn on I.A.F.A.–194 or on a simple receipt, stamped
where necessary, for the amount of the advance.
In an emergency and in exceptional circumstances when time does not permit of money
being so obtained, an advance of the amount admissible provided it exceeds Rs. 50 may be
drawn from field imprest in respect of Service officers.
Emergency Cash Requisitions (I.A.F.A.–205) will not be used for the purpose.
AIR PASSAGE WITHIN INDIAN LIMITS
(1) Travel by air is permissible on temporary or permanent duty as per the following
entitlements:–
(a) (i) For service Officers & personnel
Chief/Vice Chief/Army
Business/Club Class by Air/ AC 1st by train
Cdrs/DGAFMS/Lt.Gen& Officers drawing
Grade Pay Rs 10000 & above
Officers drawing Grade Pay Rs 7600,8700 & Economy class by Air/ AC Ist by train
8900
Officers drawing Grade Pay Rs 5400, 6100 & Economy class by Air/ AC Ist by train
6600
(ii) For Civilians
Officers drawing Grade Pay Rs10000 &
above those in pay scale of HAG + and
above
Officers drawing Grade Pay Rs 7600,8700 &
8900
Officers drawing Grade Pay Rs 5400and
6600
Business/Club Class by Air/ AC 1st class by
train
Economy class by Air/ AC Ist class by train
Economy class by Air/ AC II tier class by
train
(iii) Scientific Adviser to the Ministry of Defence at their discretion may travel in any class.
(b) In case of individuals to whom sub-clause (a) above does not apply will require approval
of competent authority notified from time to time based on certification that air travel is
urgent and necessary in public interest and that an appreciable saving of time would actually
result from the person travelling by air instead of by surface transport
AIR FREIGHT WITHIN INDIAN LIMITS
 Defence stores, the urgent movement of which is essential on medical ground or for
operational reasons, may be dispatched within Indian limits by selected services of
civil airlines.
 Such dispatches may be authorized only by officers of the rank of Brigadier and
above.
 In all other cases, dispatch of stores by air within Indian limits requires prior sanction
of the Government of India.
 When time does not permit of prior sanction being obtained, a simultaneous report
will be submitted to the Branch concerned at Army Headquarters for obtaining expost
facto sanction.
 Cash payment in respect of air freight for Government stores will be made to the
operating company from the imprests / permanent advances of the formations
concerned
 No payment shall, however, be made from public funds on account of personal
baggage.
 Charges on such account will invariably be met by the individuals themselves.
 The amount paid from imprest or permanent advance on account of freight for
Government stores will be claimed from the regional PCDA/CDA concerned on the
authority of the competent authority's sanction.
STORES AUDIT SECTION
OBJECTIVES
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(i) To help in the financial control of the activities of quasi- Commercial organizations and
manufacturing establishments of the Defence Services.
(ii) To ensure correct recovery and compilation of dues to Defence Services on Store
transactions, hire of transport, hospital treatment, etc.
DUTIES
(i) Cash accounts current of Military Farms and Remount Depots.
(ii) Monthly accounts and annual productions account of Bakeries.
(iii) Maintenance of statistics in connection with and the publication and revision of rates,
pricing of payment issue vouchers, loss statements, service transport indents, etc. and
adjustment of cost thereof.
(iv) Audit of sale accounts and audit and payment of bills on account of auctioneers‟
commission.
(v) Watching verification of Credits of high value imported and indigenous stores.
(vi) Customs duty charges.
(vii) Payment of Sea freight and landing stages bills.
(viii) Central purchase of stores in India.
(ix) Adjustment of treasury receipts for.
a. Hospital stoppage rolls in respect of non-entitled personnel admitted into hospital,
b. Recoveries made on account of loss of stores by individuals.
c. Hire of Government transport for amenities purposes, etc.
(x) Adjustment of charges on account of medical treatment between the Defence Services
and State Government (other than Tamil Nadu State).
(xi) Recovery of extra expenditure incurred by the Defence Services in connection with aid
to civil powers. (xii) Adjustment of claims for losses of stores in transit.
(xiii) Financial review of the working manufacturing establishments. 383 (xiv) Adjustment
regarding recovery schedule of GPF /CGEIS /CGHS /Advances in respect of employees of
temporary establishment of Military Farms.
VERIFICATION OF SPECIMEN SIGNATATURES IN CASE OF GOVT. SANCTIONS FOR
PURCHASE OF STORES ISSUED BY MINISTRY OF DEFENCE EXCLUDING DDPS &
DRDO
MILITARY FARMS
Cash accounts
The cash account comprises of the following:(i) Abstracts of cash book on I.A.F. (D.F.) -16
(ii) List (in duplicate) of cheques drawn on treasuries/the Bank of I.A.F.A. - 129.
(iii) List (in duplicate) of remittances into treasuries on I.A.F.A. - 31 supported by triplicate of
MROs.
(iv) Departmental transfer receipt and payments on IAF-134 supported by requisite
vouchers.
(v) Cash balance report on I.A.F.A. -147.
(vi) Statement showing the amounts paid to establishments and deductions made there from
on I.A.F. (D.F.) 39.
(vii) List of cheques cancelled during the month on I.A.F.A. -133.
(viii) Statement (manuscript) showing charges booked under renewals reserve fund.
75
(ix) Statement showing certain particulars regarding forage, capital and coupon account on
I.A.F. (D.F.) 45.
(x) Statement showing the details of military credit notes and the amounts compiled during
the month under Head -6-Capital.
(xi) Monthly pay bill of permanent establishment.
(xii) Pay bill of temporary establishment.
AUDIT
The following points should be observed in checking the cash account:(i) check the opening balances with closing balances of the previous month;
(ii) check the progressive totals;
(iii) see that the budget provisions, as given from time to time, are not exceeded and also
check the progress of expenditure;
(iv) see that advances made to contractors are adjusted within the time limit prescribed in
Para 342(b) read in conjunction with Para 343(xxvii)(a) of Army Local Audit Manual;
(v) see that the balance of cash at the end of each month, as shown in the cash book, is
within the limit fixed by the PCDA/CDA in consultation with the Assistant Director of
Remount, Veterinary and Farms.
Capital account
The capital account exhibits the capital value of all Land, Buildings, Plant, Machinery and
Live Stock of the Military Farm, and is compiled half yearly.
In this account the value of capital articles of Rs. 200 and above, purchased either from the
new demand or the renewals reserve fund as well as those transferred from other farms and
departments, will be added to the capital value.
Similarly, the capital value of the Buildings, Plant, Machinery, and live stock, which are
condemned or destroyed or transferred to other Military Farms and departments, will be
charged off from the capital account.
Coupon account
Cash realized by the sale of coupons is credited by the managers of Military Farms under
columns 17 of the cash book.
These amounts should be compiled in the first instance under the Head "Miscellaneous
Deposits" which will be relieved by contra credit to Head "Military Farms-Proceeds from the
sale of Dairy Produce" as and when issue of dairy produce are made in exchange for these
coupons.
RENEWALS RESERVE FUND ACCOUNT
The object and scope of application of this fund and the instructions as to its maintenance
are contained in R.V.F.C Regulations.
The renewals Reserve Fund account is submitted by the managers of Military Farms to the
PCDA/CDA with the audited administration reports of the farms concerned.
Annual account
The following subsidiary account will accompany the annual administration report of each
military farm:(i) Trading Account.
(ii) Capital Account
(iii) Balance Sheet.
(iv) Herd Statistics.
(v) Renewals Reserve Fund Account.
(vi) Reserve Fund Account.
(vii) Statement showing sales of dairy produce.
(viii) Annual produce and disposal statement of dairy produce (I.A.F.(D.F.)-28).
(ix) Fodder statements (I.A.F., (D.F.)-42).
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(x) Reconciliation statement of dairy produce with the amount realized (I.A.F. (Farm)-73).
These accounts will be audited by the LAO and a copy of the audited statement will be
received in the PCDA/CDA's office.
The capital account and renewals reserve fund account only will be checked in the
PCDA/CDA's office in order to see that the closing balance of the renewals reserve fund
account is correct.
REMOUNT DEPOTS Cash accounts
The general rules for the audit of cash expenditure are applicable to these cash account. In
addition, the following points should also be observed:(i) That the rates for stores purchased locally by officer-in-charge of Remount Depots under
their financial powers have been approved by the Director of Remount, Veterinary and
Farms: 391
(ii) That purchases of miscellaneous stores, etc., above Rs 2000/- for direct purchase and
above Rs 10,000/- in consultation with corresponding IFA in value at a time are supported
by the sanction of the Director of Remount, Veterinary and Farms.
(iii) That the rates for stores supplied by contracts which have been sanctioned by the
Director of Remount, Veterinary and Farms are verified with the rates shown in the
sanctioned tenders;
(iv) That in the case of animals sold or destroyed, the orders of the Director of Remount,
Veterinary and Farms are obtained on the casting rolls;
(v) That vouchers for stores purchased departmentally as well as through the agency of
contractors the cost of which is charged through the cash account are sent to the LAOs
concerned for verification with the returns of depots.
Articles of A.S.C. supply purchased locally
(i) Free issues: - Rates are published annually by the PCDA/CDA. The rates are calculated
with reference to the running contracts, or if contacts do not exist with reference to the
average of the latest purchase rates prevailing in the Area or Command as the case may
be. Departmental charges will not be taken into consideration while calculating the free
issue rates. The rates once fixed will not ordinarily be changed during the course of the
year.
(ii) Payment issues:- Recovery rates are worked out annually (for each station) on the basis
of the running contract rates as soon as such rates are available and are published annually
in Area and Independent Sub-Area Orders. The rates are revised quarterly in cases where
there is a change in the running contact rates, revised rates are also notified in Area or
Independent Sub-Area Orders and take effect from the first of the month following that in
which they are notified.
BAKERIES
Bread produced in A.S.C. bakeries
(i) Free issue rates of bread will be worked out at the end of the year, i.e., after the closing
of the March (Supplementary) compilation and will be based entirely on the stock book rates
of flour and other ingredients and the actual overhead charges for the year under review.
(ii) Recovery rates: - The recovery rate of bread will be published annually (on or about
15th March) for each station separately.
Bread obtained by local purchase
The free and payment issue rates are calculated as in Para. 570 (i) and (ii) of OM Pt II.
Bread obtained through a contractor
When bread is obtained through a contractor by issuing flour and other ingredients from the
A.S.C. source (free of cost) in Government transport for the supply of a specified quantity of
77
bread in return on payment of certain baking charges, the free and recovery rates of bread
will be calculated on the following items of expenditure:Free issue rates:(i) Cost of flour and other ingredients consumed at free issue rates.
(ii) Baking charges paid to the contractor.
(iii) Transportation charges incurred for the conveyance of flour and other ingredients from
the Supply Depot to the contractor's bakery and again of bread from the bakery to the
Supply Depot.
Payment issue rates:(i) Cost of flour and other ingredients consumed at payment issue rates.
(ii) Baking charges paid to the contractor.
(iii) Transportation charges incurred for the conveyance of flour and other ingredients from
the Supply Depot to the contractor's bakery and again of bread from the bakery to the
Supply Depot.
(iv) Transportation charges from the Supply Depot to consuming unit's ration stands at a flat
rate determined by the authorities at Armed Forces Headquarters from time to time.
(v) 2.1 N.P. per lb. as overhead charges to cover labour, audit and supervision etc.
Rates for fodder
(i) Free issue rates:-The audit general supply rates of the various farms will be
adopted for the purpose of free issue of fodder and will be operative until the
publication of the next year's rates. These rates will be published in Area and
Independent Sub-Area Orders, Stations-wise.
(ii) Payment issue rates:-These rates will be worked out annually by the Assistant
Director of Remount, Veterinary and Farms in consultation with the PCDA/CDA
who will see that they do not differ appreciably from the general supply rates.
After approval, the recovery rates will be intimated to Commanders A.S.C. by the
Assistant Director of Remount, Veterinary and Farms. Commanders ASC will
arrange for these rates to be published in Area Orders with those of local
purchase items for information of units. These rates will be operative until the
publication of the next year's rates.
BLANK PRICING OF PAYMENT ISSUE VOUCHERS, LOSS STATEMENTS,
SERVICE TRANSPORT INDENTS, ETC., AND ADJUSTMENT OF COST THEREOF
Payment issue vouchers which are required to be priced by the PCDA/CDA are received
in Stores Audit Section for pricing.
The vouchers, after pricing, will be returned by the Section to the unit or formation from
whom they were received.
The LAOs will in all cases of payment issues made to other than individuals on cash
payments
The schedules will be prepared separately for each category of payment issue and the
category endorsed on each payment issue schedule from the marking of the payment
issue voucher.
They will be supported by vouchers and by treasury receipts where advance payments
are required to be made.
In case of payment issue which is adjustable by book debit, the receipted copies of
vouchers when received will be forwarded by the issuing formation through the LAO to
the PCDA/CDA.
The PCDA/CDA will maintain a guard file of payment issue schedules separately for
each category to enable him to readily ascertain and take prompt action to clear
outstanding payment issues in each category.
Loss statements
Loss statements will be sent in triplicate to Stores Audit section for pricing.
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After pricing, the original and duplicate copies will be returned to the unit or formation
concerned.
The triplicate copy will be forwarded to the 397 LAO responsible for the audit of stores
accounts of the unit or formation and watching of recovery action.
Service transport indents
The cost of service transport provided to M.E.S. formations and Military Farms is
required to be assessed in order to take the same in the accounts of works or the
Military Farms concerned. For this purpose, the indents in respect of transport provided
to M.E.S. formations are priced by the A.Os.
In respect of transport provided to Military Farms, the indents are received in triplicate
from the Station Transport Officer.
They will be priced at the rates notified for the purposes in Army Instructions or
Government orders issued from time to time.
After completing part V of the indent, one copy will be sent to the military farm
concerned. The second copy will be sent to the station transport officer and the third
copy retained for record.
Whilst pricing the payment vouchers/loss statements pertaining to ordnance, mechanical
transport, medical and clothing stores, if it is found by the PCDA/CDA that a particular
item is not traceable in the priced vocabulary he should insist on the depot concerned
obtaining the payment issue rate of that item from Army Headquarters.
In other cases the rate will be obtained by the PCDA/CDA from the Ministry of Defence
(Finance).
The rates so obtained from the Army HQrs or Ministry/Defence (Finance) will be
recorded in a Register of NIV items which will be utilized for pricing of such items for
future periods also.
AUDIT OF SALE ACCOUNTS RELATING TO SURPLUS, OBSOLETE AND WASTE
STORES
The responsibility for the disposal of items of surplus and obsolete stores not exceeding
the sum of Rs. 5000, in value in any single category and of all waste stores, i.e., salvage
scraps regardless of value has been vested in the Ministry of Defence.
Detailed instruction on the following points is issued by the Ministry of Defence from time
to time:- (i) Delegation of powers to authorities subordinate to the Ministry of Defence. (ii)
Fixation of guiding/reserve prices and the finance and accounts authorities whose
concurrence is required. (iii) Acceptance of bids below the guiding/reserve prices.
When such stores are disposed off, units/formations will prepare sale accounts (I.A.F.A.58) in quadruplicate/quintuplicate (in the case of salvage section/sub-depot) and forward
the original, duplicate and triplicate copies duly signed by the competent officers
together with the under mentioned documents to the PCDA/CDA's offices for disposal:(i) Treasury receipts; the number and date of the treasury receipts and the names of the
treasuries should be noted on the sale accounts.
(ii) Auction catalogues (I.A.F.O. - 2468), (prepared separately under general heading
(a) metal and hardware,
(b) textiles and leather,
(c) vehicles,
(d) Plant and Machinery,
(e) other miscellaneous items all approved,
(iii) Letters, if any, from the sanctioning authority altering the reserve prices originally
noted in the approved auction catalogues.
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(iv) The letter of acceptance from the purchaser in case of stores sold by private treaty
by local authorities.
(v) Comparative statements showing the names of tenderers, the rates tendered and the
rates accepted, in the case of stores sold by local authorities by inviting tenders.
(vi) A copy of sale release order duly receipted by the purchase and endorsed with the
relevant gate pass No. and date (the date of gate pass being the date on which the
stores have actually been removed from the site) in the case of sale of surplus salvage
stores.
(vii) No. 5 copy of the issue voucher duly receipted by the purchaser and endorsed with
the relevant gate pass No. and date (the date of gate pass being the date on which the
stores have actually been removed from the site) along with the sale release order in the
case of sale of surplus stores.
While checking the sale accounts, it will be seen that:(i) The sale account has been signed by the competent officer;
(ii) The tendering of the sale account has not been delayed;
(iii) The number and date of the treasury receipt as also the name of the treasury has
been quoted on the sale account;
(iv) The Authority for sale and the method of disposal of stores have been shown;
(v) in the case of private treaty sales, the following certificate has been furnished:- "sold
by private treaty after failure to obtain reasonable prices in auction".
(vi) the name of purchaser has been given;
(vii) in the case of stores sold by auction, the amount shown in the sale accounts agrees
with the bid accepted at the auction sales which is shown in auction catalogue;
(viii) the accepted bid as shown in the sale account does not fall below the "reserve
price" shown in the auction catalogue. It should be seen that the sanction of the
competent authority exists where the bid has been accepted below the reserve price.
(ix) the stores have been removed within the stipulated time as indicated in the sale
release order and if not ground rents, where due, has been recovered correctly
The responsibility for the audit of auctioneers commission bills devolves on the
Regional/Functional PCsDA/CsDA.
While auditing the auctioneer's commission bills, it will be seen that:
(i) The amount of the proceeds on which the commission bills is based agrees with the
sale account, treasury receipts etc. received from the stock holder.
(ii) The commission is determined on the slab/conditions as per auctioneer agreement.
(iii) The arithmetical calculations in the bill are correct.
(iv) In case the sale proceeds are not credited within the stipulated time, interest at one
percent is charged from the auctioneer for each month or part of a month during which
the payment into the treasury is in arrears.
The charges on account of payment of commission to auctioneers selling agents, except
in the case of MES and manufacturing establishments may be compiled to the Head
"other misc., charges under - 'Minor Head' other expenditure of the relevant expenditure
may be booked to the Head Miscellaneous expenses under Minor Heads concerned and
in the case of MES to HEAD II Sub-head B (a).
PROCEDURE FOR CREDIT VERIFICATION OF CREDITS OF HIGH VALUE
IMPORTED AND INDIGENOUS STORES
The revised procedure is as under:(i) Due to winding up of the ISM Washington/London, changes (as enumerated in
following points) in procedures were made.
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(ii) To facilitate standardization of the number of copies/documents required by various
agencies for all the three Services and number of copies required as per payments
terms of contract should be mentioned in the Letter of Credit/instrument. The instructions
regarding number of copies for invoice, airway bill from the suppliers as laid down in
Defence Procurement Manual with revisions issued from time-to-time shall be followed.
(iii) One set of original documents (invoice, packing list, airway bill, Bill landing,
certificate of origin etc) is required to be dispatched directly by SBI to the landing officer.
The intimation regarding Bank Release Order (BRO) by the bank will be sent through
electronic media/fax through a single contact point in each of the three Service HQrs and
full address and contact number of the concerned officer will be intimated to SBI (FED)
by the Service HQ.
(iv) All copies of invoices along with shipping documents as provided for in the contact
are required to be routed through the bank. In all contracts concluded after 27.04.2007
the same will be indicated.
(v) A complete set of documents will be sent by the bank to the office of PCDA, New
Delhi and then the latter will pass the relevant information relating to payments
electronically through Wide Area Network (WAN) to the consignee PCDA/CDA as per
enclosed format at Annexure-G to this chapter. Since the data would be transmitted by
PCDA, New Delhi and since the entire consignee PCsDA/CsDA under the control of
CGDA have been connected with WAN, physical transmission of invoices etc. by PCDA,
New Delhi may be dispensed with.
(vi) The consignee LAOs will also forward the details of credit verification to their
PCDA/CDA in the format enclosed as Annexure-H to this chapter. The necessary
instructions and its implementation by all PCDA/CDA shall be the responsibility of
CGDA.
(vii) Inspection of stores received in Depots should be as per a uniform procedure by all
the Service HQ in the format as given at 402 Annexure-I to this chapter. Any
discrepancy/short receipt is to be taken up immediately with the supplier by the Service
HQrs. Also the signatures of concerned ADG of Army (and equivalent for other Services)
shall continue for countersignature of Joint Receipt Inspection (JRI). The time frame for
completing JRI i.e. 120 days will be strictly adhered to.
(viii) The Service HQ will respond in a time-bound manner to the minor discrepancies
like clerical errors, incomplete documentation etc. noticed by the SBI (FED), in the LoCs.
For the major discrepancies the information will be submitted within a week of its receipt
from the SBI.
(ix) The Service HQ will make full use of the automated system wherever it exists, for
transmission of documents such as original copies of invoice, BRO, JRI etc. to the
various agencies.
ADJUSTMENT OF CHARGES ON ACCOUNT OF MEDICAL TREATMENT BETWEEN
THE DEFENCE SERVICES AND STATE GOVERNMENTS (OTHER THAN TAMIL
ANDU)
In the case of a State employee admitted into a military hospital an advance intimation of
the admission and discharge of the individual concerned (as and when it takes place)
will be sent by the O.C. the military hospital to the Account Officer paying the State
employee under treatment, through the PCDA/CDA of the area in which the hospital is
located.
Such advance intimations from the Military Hospital will be received in Stores Audit
Section and acknowledged after keeping a suitable record of the case in the demand
register.
They will then be sent to the Accounts Officers concerned for information and such
action as they may consider necessary for recovery from the individuals concerned of
the amount payable by them (Government servant) under their rules.
Os.C hospitals will as usual render hospital stoppage rolls on a month to month basis to
the PCDA/CDA concerned quoting the number and date of the advance intimation
81
already sent and endorsing prominently thereon the name of the State Government to
which the employee belongs.
In the case of service personnel (including commissioned officer) treated at civil
hospitals, advance intimations of the admission and discharge will be received by the
C.D.A. paying them and debits on the account will also be raised against him by the Civil
Accounts Officers concerned.
That PCDA/CDA will be responsible for the adjustment of such debits against the
Defence Services Estimates and for the recovery of hospital stoppages under the normal
rules from the individuals concerned.
The state of Tamil Nadu remains outside the scope of the above arrangement except for
Personnel of the National Cadet Corps and personnel of the Defence Services serving
with NCC units.
ADJUSTMENT OF CLAIMS FOR LOSS OF STORES IN TRANSIT
When a claim on the railway authorities for loss of stores in transit has been accepted, a
copy of the acceptance letter from them indicating the total cost accepted is received
from the consignee in the PCDA/CDA's office.
Debit for the amount will be raised against the railway Accounts Officer concerned
through the CGA, New Delhi duly supported by a copy of the acceptance letter and
credit taken to the relevant store head of account.
In respect of imported stores, except Naval armament stores (explosives), a copy of the
claim on account of stores short landed/damaged will be received from the Embarkation
Commandant by the PCDA/CDA in whose area the Port is located for watching the
progress of the claim.
The amounts recovered from the shipping companies will be credited into the treasury
on Military Receivable Orders.
The treasury receipts will received by the PCDA/CDA and adjusted by him finally in his
books to the appropriate receipt head.
As regards Naval armament stores (explosives), a copy of the claim will be received by
the PCDA (Navy) who will be responsible for watching the progress thereof.
The treasury receipts for the amounts recovered will also be adjusted by him.
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CHAPTER - 6
ACCOUNTING PROCEDURE IN DAD
INTRODUCTION
The Ministry of Defence (Finance) of the Govt. of India is to ensure that suitableAccounts
are maintained by the Defence Services. Accordingly, the Pr. Controllers/Controllers should
seek the intervention of that Ministry, through the Controller General of Defence Accounts in
cases in which the forms of initial or other accounts or of bills, prescribed by competent
authority, are deviated from.
The forms in which the accounts should be kept in the offices of the Defence Accounts
Department are prescribed by the Controller General of Defence Accounts, with the
approval of the Defence Secretary and Financial Adviser but if any change affects the form
of the Finance and Revenue Accounts, it will not be made without the previous sanction of
the Controller General of Accounts and Comptroller and Auditor General.
Note: The word 'form' has comprehensive meaning so as to include the prescription
not only of the broad form in which the accounts are to be kept but also the
appropriate heads under which certain transactions or classes of transactions have
to be entered.
The Government of India may require any information which can be derived from the
accounts maintained in an Accounts office, and for this purpose an Accounts Office of
theDefence Accounts Department may find it necessary on occasions to make
slightamendments in the forms for maintaining accounts. All changes in the prescribed forms
andprocedure should be referred to the Controller General of Defence Accounts.
All returns, accounts and statements required by the Controller General of Accounts
and Comptroller and Auditor General should invariably be prepared in the forms prescribed
by them.
DEPARTMENTALISATION OF ACCOUNTS
From 1st October, 1976 onwards, the responsibility for compiling the accounts of Defence
Services including those relating to taxes, duties and other receipts and depositsrealized or
refunded under any law has been entrusted to the Controller General of Defence
Accounts.
The Controller General of Defence Accounts functions on behalf of Secretary
Defence(Finance)/ Financial Adviser (Defence Services), as the Chief Authority in all
matters affecting financial advice, internal audit and the accounting in respect of expenditure
pertaining to the Defence Services. Under the scheme of Departmentalization of accounts in
the Ministry of Defence, the Defence Secretary will be the Chief Accounting Authority for all
transactions of the Ministry of Defence and this responsibility is discharged by him through
and with the assistance of Secretary Defence (Finance)/ Financial Adviser (Defence
Services), who will function for and on behalf of the Chief Accounting Authority. The
payments and accounting functions in respect of the Ministry of Defence are entrusted to the
Controller General of Defence Accounts who will function as the Principal Accounting
Officer.
Controller General of Defence Accounts on behalf of Chief Accounting Authority
(theSecretary of Ministry of Defence) is responsible for the compilation and consolidation of
theAccounts of the Ministry of Defence in the prescribed form and their timely rendition to
the Controller General of Accounts. The Controller General of Defence Accounts, on behalf
of Chief Accounting Authority arranges payments of Defence Services through Principal
Controllers/Controllers Office and the cheque drawing DDOs and is also responsible
forarranging internal audit of all expenditure.
83
COMPILATION OF DEPARTMENTALISED ACCOUNTS
The Defence Accounts Department classifies expenditure in respect of (i) Defence
Services paid from Defence Service Estimates and (ii) Civil organizations under Ministry of
Defence including Defence Accounts Department, mentioned below, which are paid from
The civil grant of Ministry of Defence:
(i) Armed Forces Tribunal
(ii) Coast Guard Organization
(iii) Department of Defence
(iv) Department of Defence Production
(v) Department of Defence Research and Development
(vi) Department of Ex-Servicemen Welfare (DESW)
(vii) Defence Accounts Department
(viii) Defence Estates Organization
(ix) Jammu and Kashmir Light Infantry
(x) Canteen Stores Department
GENERAL DUTIES OF CONTROLLER GENERAL OF DEFENCE ACCOUNTSAS A
CHIEF ACCOUNTING OFFICER
The CGDA is responsible for the following items of work under the scheme
ofDepartmentalization, performed for and on behalf of the Chief Accounting Authority:o Consolidation of the accounts of the Ministry of Defence in the manner
prescribed by CGA;
o Arranging all payments of Defence Services through PCsDA/CsDA, Drawing
and Disbursing Officers of the Services wherever they are authorized to make
certain types of payments;
o Submission of Statement of Central Transactions and material for the
FinanceAccount of the Defence and Defence (Civil) to the Controller General
of Accounts;
o Preparation of annual Statement of Central Transactions (SCT) of Defence
ServicesReceipts and Charges and rendition to the Controller General of
Accounts, Ministry ofFinance, Department of Expenditure, New Delhi on the
date prescribed by them;
o Preparation of certain subsidiary statements in connection with the
AppropriationAccounts as prescribed in Defence Audit Code and submit them
to the Financial Adviser,Defence Services/Secretary (Defence Finance).
CGDA also renders annually an AuditCertificate on the accounts of the
Defence Services; to the Financial Adviser, DefenceServices/Secretary
(Defence Finance);
o Preparation of the portion of the Combined Finance and Revenue
Accountspertaining to Defence Services and its submission to the Controller
General of Accounts andDirector General of Audit, Defence Services for
incorporation in the combined Finance andRevenue accounts of the Central
and State Government in India;
o Preparation of the Appropriation Accounts of the Civil Estimates of the
Ministry of Defence and sending the same to the Financial Adviser, Defence
Services/Secretary (Defence Finance) and the Defence Secretary for onward
transmission to the Controller General of Accounts and Director General of
Audit, Defence Services.
GENERAL SYSTEM OF THE ACCOUNT
1. CONSOLIDATED FUND, CONTINGENCY FUNDAND PUBLIC ACCOUNT OF INDIA
The Central Government has a Consolidated Fund entitled "Consolidated Fund ofIndia"
into which the revenues received by the Central Government (including Union Territories),
84
loans raised by that Government by the issue of Treasury Bills, loans or waysand means
advances and moneys received by the Government in repayment of loans arecredited, and
from which the expenditure of that Government when so authorized by theParliament, is
met. The Central Government also has a Public Account entitled "PublicAccount of India",
into which all other public moneys received by, or on behalf of the CentralGovernment
(including Union Territories) are credited and from which disbursements aremade in
accordance with the prescribed rules. The procedure to be followed for thepayment into and
the withdrawal, transfer or disbursement of moneys from the"Consolidated Fund" and the
"Public Account" for the custody of moneys standing in thatFund and Account, is regulated
by law made by the Parliament and pending such legislationby the rules made by the
President under Article 283 of the Constitution.
The Central Government has a separate Contingency Fund entitled "The
ContingencyFund of India". The Fund will be at the disposal of the President to enable
advances to be made by him for meeting unforeseen expenditure, pending authorization of
such expenditure by Parliament under appropriations made by law. The procedure to be
followed for the custody of the payment of moneys into and the withdrawal of moneys from
such fund is regulated by law made by the Parliament and pending such legislation, by the
rules made by the President.
Note: Though the transactions of the Railways, Department of Posts and Department
and The Defence Services form part of the Consolidated Fund, the Contingency Fund
and thePublic Account of India, they are nevertheless taken against the "Railway
Fund", "Post and Telegraphs Account" and "Defence Account" which have been
created proforma in the booksof the Reserve Bank of India.
Save as may be specifically provided in any case, cash balances in the ConsolidatedFund
or Contingency Fund and Public Account of India are either held in a Governmenttreasury or
kept with the Bank.
ANNUAL FINANCE ACCOUNTS OF THECENTRAL GOVERNMENT
The Annual Finance Accounts of the Central Govt. (including Defence Services)
areprepared by the Controller General of Accounts after the close of each financial
year.While the Appropriation Accounts of Defence Services are prepared by the
FinancialAdviser (Defence Services) and signed by the Defence Secretary, the
AppropriationAccounts of the Defence (Civil) and Defence Pensions are prepared by the
CGDA Office andsigned by the CGDA.
Note:-Finance Accounts contains various statements. Some of the important Statements
are:(i) Statement No.1- Summary of Transactions
(ii) Statement No.3-Loans and Advances by the Union Government
(iii) Statement No.4- Guarantees Given by the Union Governments
(iv) Statement No. 5-Summary of Balances
(v) Statement No.6-Statement showing Percentage Distribution of Revenue Receipts and
Revenue Expenditure for the year
(vi) Statement No.-10 Statement of Expenditure on Capital Account during and to theend of
the year
(vii) Statement No.-11-Statement showing the Investments of the Union Government in
Statutory Corporations, Government Companies, Other Joint Stock Companies, Cooperative
Banks and Societies, etc., up to end of the year.
(viii) Statement No.-13-Statement of Receipts, Disbursements and Balances under heads
of account relating to Debt, Deposits, Remittances and Contingency.
THE COMBINED FINANCE AND REVENUE ACCOUNTS OF THE CENTRALAND STATE
GOVERNMENTS IN INDIA
85
The Controller General of Defence Accounts (CGDA) prepares the portion of theCombined
Finance end Revenue Accounts pertaining to the Defence Services and submits itto the
Controller General of Accounts (CGA) for incorporation in the Combined Finance
andRevenue Accounts of the Central and State Governments in India. This account is in
thenature of a General Financial Statement incorporating a summary of the accounts of
theCentral Government and of all the State Governments for the last preceding financial
year. Itpresents the transactions of all the Governments side by side, classified under the
severalmajor and minor heads of accounts classification, thus incidentally enabling a
comparison tobe made for statistical or other purposes of the receipts and expenditure of
the severalGovernments pertaining to each branch of administration or to activities of a
similar nature.
PERIOD OF ACCOUNTS
The annual accounts of the Central, State and Union Territory Governments whichthe
Controller General of Accounts is required to render, shall record transactions which
takeplace during a Financial Year running from 1st April to 31st March. Similarly, the
AnnualGeneral Financial Statement (the Combined Finance and Revenue Accounts of the
Centraland State Governments in India) which the Controller General of Accounts prepares,
shallrecord the transactions of the Central/State and Union Territories Governments for the
sameperiod.
Note: -The Government accounts of a year are kept open for a certain period in thefollowing
year for completion of the various accounting processes interalia in respect of
thetransactions of March, for carrying out certain inter-departmental adjustments, through
theCentral Accounts Section of the Reserve Bank of India, Nagpur up to 15th April of
thefollowing year, vide Para 108 and for the closing of the accounts of several Provident
Fundsand Suspense heads. Adjustments may also be made after the close of the year in
respectof misposting and misclassifications coming to notice after the 31st March. An
actualtransaction taking place after 31st March should not, however, be treated as
pertaining tothe previous financial year even though the accounts for that year may be open
for thepurposes mentioned aboveAccounts so kept open after 31st March are known as
MarchSupplementary/Supplementary-I
and
March
Supplementary
Corrections/
Supplementary-II.
These accounts are closed by the CGDA on the dates intimated by CGA, Ministry of
Finance(Department of Expenditure). The dates of closing of accounts in the books of
PCsDA /CsDAare intimated by the CGDA each year. The accounts of the financial year in
the books of thePCsDA/CsDA will be finally closed in March Supplementary Corrections/
Supplementary-II.However, a 3 to 4 days’ time window for reporting any exceptional manual
corrections
shallbe
provided
before
finalizing
of
March
Supplementary
Corrections/Supplementary-II.After closing of annual accounts, if a rectification/readjustment
is necessary, thesame will be carried out with the prior approval of CGA, Ministry of Finance
(Department ofExpenditure) in exceptional cases subject to the following:(i) Journal Entry is initiated for rectification of a misclassification / readjustment withinthe
time limit prescribed by the CGA;
(ii) The rectification / readjustment necessitated is not less than one Crore of amount ina
single transaction unless rectification/ readjustment is otherwise necessary for closing
ofannual accounts.
(iii) Suitable action is invariably taken against all concerned for not detecting the errorduring
monthly review and within the supplementary accounts.
CASH BASIS OF ACCOUNTS
With the exception of such book adjustments as may be authorized by any rulesincluded in
this Code or Account Codes or by any general or special orders issued byGovernment, after
consultation with the Comptroller and Auditor General, the transactions inGovernment
Accounts shall represent the actual cash receipts and disbursements during afinancial year
as distinguished from amounts due to or by the Government during the same period.
86
CURRENCY IN WHICH ACCOUNTS ARE KEPT
The Accounts of Government kept in India are maintained in Indian Currency.
FORMS OF ACCOUNTS
Main Divisions of Accounts
The Accounts of Central Government shall be kept in the following three parts:
(i) Part I - Consolidated Fund of India
(ii) Part II - Contingency Fund of India
(iii) Part III - Public Account of India
In Part I (Consolidated Fund of India) of the Account there shall be two main
divisions namely: —
(i) Revenue (consisting of sections for “Receipt Heads (Revenue Account)” and
“Expenditure Heads (Revenue Account)”.
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(ii) Capital, Public Debt, Loans etc. (consisting of Sections for “Receipt Heads
(Capital Account)” and “Expenditure Heads (Capital Account)” and “Public Debt (Loans and
Advances etc.)”.
(a) The first division comprising of the Section “Receipt Heads (Revenue Account)” shall
deal with the proceeds of taxation and other receipts classed as revenue, and the Section
“Expenditure Heads (Revenue Account)” dealing with expenditure met there from.
(b) The section “Receipt Heads (Capital Account)” in the second division shall deal with
receipts of a Capital nature which cannot be applied as a set off to Capital Expenditure.
(c) The section “Expenditure Heads (Capital Account)” in the second division shall deal with
expenditure met usually from borrowed funds with the object either of increasing concrete
assets of a material and permanent character or of reducing recurring liabilities. It also
includes receipts of a capital nature intended to be applied as set off to Capital Expenditure.
(d) The section “Public Debt” and “Loans and Advances” etc. of the Second Division shall
comprise Loans raised and their repayments by Government such as “Internal Debt”,
“External Debt” of the Central Govt. and Loans and Advances made (and their recoveries)
byGovernments. The Section also includes certain special types of heads for transactions
relating to 'Transfers from Consolidated Fund to the Contingency Fund' and inter-state
settlement.
(e) So far as the Defence Services and Defence Accounts Department are concerned, the
following sections are covered in Part I of Pamphlet of Revenue, Debt and Remittance
Heads and Classification Hand Book of Defence Services Receipts and Charges:(i) Revenue Division-Sectors 'A' and 'B’
(ii) Capital Division—Sectors 'A', ‘B’ and 'C’
(iii) Loans and Advances-Sector ‘F’
In Part II (Contingency Fund of India) of the Account the transactions connectedwith the
Contingency Fund set up by the Government of India under Article 267 of the Constitution
shall be recorded.
In Part III (Public Account of India) of the Accounts, the transactions relating to Debt {i.e.
Small Saving Provident Funds (Sector-I), Reserve Funds (Sector-J) Deposits and Advances
(Sector-K)}, Suspense and Miscellaneous (Sector-L) and Remittances (Sector-M)}shall be
recorded. The transactions under Debt, Deposits and Advances in this Part are such
in respect of which Government incurs a liability to repay the moneys received or has a
claim to recover the amounts paid together with the repayments of the former (Debt and
Deposits) and the recoveries of the latter (Advances). The transactions relating to
'Remittances' shall embrace adjusting heads with Railways and Department of Posts etc.,
except Exchange Accounts which are settled within different accounting circles (TBOs etc).
The initial debits or credits to these heads will be cleared eventually by corresponding
receipts or payments either within the same circle of account or in another account circle.
'Suspense' in this Part is also a adjusting head. So far as Defence Services and Defence
Accounts Department are concerned, Part III of the account will cover all Sectors from ‘I to
M’.
The Divisions/Sections mentioned in the preceding paragraphs shall be grouped into sectors
under which specific functions or services are grouped. The sectors are sub-dividedinto
Major Heads of Account. However, in some cases, the sectors are, sub-divided into
subsectors before been divided into Major Heads of Accounts. The sectors shall be
distinguishedby a series of letters of the Alphabet separately for the "Revenue Receipt"
section, the "Revenue Expenditure" section and for the sectors included in the remaining
Sections/Divisions.
(b) A four digit code has been allotted to the Major Head, the first digit indicating whether the
Major Head is a Receipt Head or a Revenue Expenditure head or a Capital Expenditure
head or Loan Head. If the first digit is '0' or '1' the head of Account will represent Revenue
Receipt, '2' or '3' will represent Revenue Expenditure, '4' or '5' Capital Expenditure, '6' or 7'
Loan Head and '8' will represent Contingency Fund and Public Account.
(c) Under the scheme of codification, the "Receipt" Major Heads are assigned the blockof
consecutive serial numbers 0001 to 1999 and "Expenditure" Major Heads on Revenue
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Account from 2001 to 3999. The only Capital Receipt Major Head has been given the
codenumber 4000. Expenditure Major Heads on Capital Account are assigned code Nos.
from 4001 to 5999 while Major heads under 'Public Debt' Loans and Advances, Inter-state
Settlement and Transfer to Contingency Fund are assigned code Nos. from 6001 to 7999.
The only Head for Contingency Fund in Part II Contingency Fund is given the code number
8000. The Major Heads in the Public Account are assigned code numbers from 8001 to
8999. The code numbers relating to a Major Head in respect of the same function falling
under the four sections mentioned above are arranged in such a way that by adding 2000 to
the concerned code, the Major Head applicable for the four sections could be determined.
This is to ensure easy correlation of Receipts/Expenditure relating to the same function
Occurring in these four sections.
Note: The Major Head Capital Outlay on Defence Services is a common head which
catersto all Defence Services including Army, Navy, Air Force, Ordnance Factories, R
& D andInspection Organization. There is no corresponding loan Major Head for
Army.
(d) As exceptions to these General principles of assigning code numbers there are a few
cases of Major Heads for the same function which do not exist in all the four sections. In
Other words, the Major Heads of the same description would appear only in the relevant
Sections.
(e) The Sub Major Heads are denoted by two digits (e.g. 02, 03, etc.). The Minor Heads
are given three digits as in 101, 104, 110, 800 etc. Some of the Minor Heads (see examples
given below) are common to some of the Services/Ministries.
Minor Head 001—Direction and Administration
Minor Head 004—Research and Development
Minor Head 050 —Lands and Buildings
Minor Head 051 —Construction
Minor Head 052 - Machinery and Equipment
Minor Head 202 —Construction
Minor Head 790-Loans to PSUs
Minor Head 799-Suspense
Minor Head 800-Other Expenditure
RULES REGULATING THE ACCOUNTING OF RECOVERIES OF EXPENDITUREIN
GOVERNMENT ACCOUNTS
The rules in this chapter regulate the accounting of recoveries of expenditure inGovernment
accounts.
In these rules, the term "Recovery" is used in a limited sense to denote repayment ofor
payment by another department of the same Government or by another Government orby a
non-Government party (including public sector undertakings, autonomous bodies andPrivate
persons and bodies to a Government Department) which initially incurred the chargeand
classified it in the accounts as final expenditure by debit to revenue or capital heads
ofAccounts.
RECOVERIES FROM PRIVATE PERSONS OR BODIESAND GOVERNMENTS OUTSIDE
INDIA
Recoveries of expenditure for services or supplies made to non-Government partiesor other
Governments (including local funds and Governments outside India) shall in allcases be
classified as receipts of the Government rendering such services or supplies.
Exceptions:
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(i) When a Government undertakes a service merely as an agent of a private body, sothat
the entire cost of the service is recovered from that body, the net cost of Governmentbeing
nil, the recoveries may be taken as reduction of expenditure.
(ii) In case of projects jointly executed by several Governments, where the expenditureis to
be shared by the participating Governments in agreed proportions, but the expenditureis ab
initio incurred by one Government and shares of another participating
Governmentsrecovered subsequently, such recoveries from other Governments should be
exhibited asabatement of charges under the relevant expenditure head of account in the
books of theGovernment incurring the expenditure initially.
RECOVERIES OF EXPENDITURE ON WORKS IN PROGRESS AND TRANSACTIONSOF
STOCK AND OTHER SUSPENSE ACCOUNT
The technical estimates take cognizance of all anticipated receipts from sale proceedsof
material, plants, etc., received from the old structure, while the receipts under “Stock and
Suspense" are, by their very nature inseparable from the expenditure recordedunder the
main head. The recoveries falling under these two categories should, therefore,be treated
as reduction of gross expenditure.
RECOVERIES BY ONE GOVERNMENT FROM ANOTHER (WITHIN INDIA)
As between two or more Governments, the classification of recoveries is regulated
asfollows: (a) If the recoveries represent debits to another Government of expenditure which wasso
dubitable from the moment it was sanctioned, they should not be treated as revenue ofthe
Government effecting the recoveries but as deduction from expenditure.
(b) In case of joint establishment, where the expenditure is not shared by two or
moreGovernments ab initio, but is incurred by one of the Governments and partially repaid
by theothers, the repayment, if made while the accounts of the year are still open, should
betreated as deduction from expenditure.
(c) Recoveries of the classes falling under (a) and (b), if not effected within the accountsof
the year in which the expenditure was incurred, should be treated as revenue.
Exception:
In cases where recovery is made on the basis of calendar year instead of financialyear, the
entire amount of recovery may be treated as reduction of expenditure though aportion of it
relates to expenditure incurred during the previous financial year.
(d) All other recoveries, whenever received, should be credited as revenue of therecovering
Government.
CLASSIFICATION OF RECOVERIES MADE BY ONE DEPARTMENT FROM ANOTHER
DEPARTMENT OF THE SAME GOVERNMENT
As between different departments of the same Government, the recoveries should betreated
as deduction from the gross expenditure, except such recoveries as are made by
acommercial department e.g. Railways, Department of Posts and Department
ofTelecommunications or a department of commercial undertaking (e.g. AIR), which should
be
treated as receipts of that department.
Note 1:- Such recoveries realized by a non-commercial department (other than the
CentralPurchase Organizations of the Government of India) from another Department
of the sameGovernment shall be shown in the relevant Demand for Grant as "below
the line" recoveryunder the appropriate major head of account. Recovery actually
effected, irrespective of theyear to which it relates, shall be adjusted in accounts in
reduction of expenditure andexhibited in the schedule of recovery to be attached to
the Appropriation Accounts of theyear in which the recovery is affected.
Note 2:- Recoveries effected after the close of the accounts of the year in which
theexpenditure was incurred, should be compiled in the Defence Services Accounts
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as revenueand not as deduction from expenditure, unless the latter course, is
authorized by provisionin the budget estimates
RECEIPTS AND RECOVERIES ON CAPITAL ACCOUNT
Notwithstanding anything to the contrary that may be provided by or under the rulesin this
Chapter, receipts and recoveries on Capital Account, in so far as they representrecoveries
of expenditure previously debited to a Capital major head shall be taken inreduction of
expenditure under the major head concerned.
SETTLEMENT OF DOUBTS OR DISPUTES
In case of doubt or dispute, the question whether any particular recovery isclassifiable
asrevenue or as deduction from expenditure under the rules in this Chaptershould be
referred to the Controller General of Defence Accounts for decision in consultationwith the
Comptroller and Auditor General of India.
GENERAL RULES AND PROCEDURE APPLICABLE TO DEFENCE PROFORMA
ACCOUNT
The balances of the Defence Services have been created Proforma in the books of the
Reserve Bank of India w.e.f. 1st April, 1962. These balances form part of the balances of
the Central Government for regulating the ways and means arrangements. There is one
Central Account in the books of the Reserve Bank of India for the Defence Service as a
whole but in the details working up to this single account, the total figures for each Controller
will be available separately in the books of the Reserve Bank. The transactions with or on
behalf of the Defence Services arising in the accounts of Post/Railways/Department of
Supply in the Ministry of Commerce (stores transactions) and those relating to High
Commission of India, London and Embassies accounts including ISM
Washington received through Principal Accounts Officer of Ministry of External Affairs will be
adjusted with the Reserve Bank against the balance of the Defence Proforma Account and
of the Government concerned. These adjustments will centrally be effected by the
CentralAccounts Section of the Reserve Bank of India at Nagpur.
Note :- Ways and means advances (WMA) is a mechanism used by Reserve Bank of
India (RBI) under its credit policy which provides to banks in States to tide over
temporary mismatches in the cash flow of their receipts and payments. This is guided
under Section 17(5) of RBI Act, 1934 and are repayable in each case not later than
three months from the date of making that advance.
Transactions of the Defence Services taking place in the branches and offices of the
Reserve Bank of India and the State Bank of India and its Associates (other than payments
made on the authority of pay orders issued by Treasury Officers, e.g., payment of pension to
Defence Pensioners) will be taken directly against the Defence Proforma Account.
However, in the case of non-bank treasuries, Defence transactions will be incorporated in
the Treasury Accounts, and will be accounted for in the Settlement Accounts of the Civil
Accountants General concerned.
Note: -Amounts pertaining to the Defence Department paid into the Bank treasuries
accompanied by the Treasury Challans under Rule 470 of the Compilation of Treasury
Rules Vol-I will be incorporated by the Banks in the treasury officers' accounts for eventual
adjustment through the Civil Accountant General concerned.
DEFENCE TRANSANCTIONS AT BANK TREASURIES
Under the provisions of Section 21 of the Reserve Bank of India Act and theAgreement
entered into by the Central Government with Reserve Bank of India, generalbanking
business (consisting of receipts, collections, payments and remittances) on behalf ofthe
Central Government, is carried on by Reserve Bank of India as it’s banker. At placeswhere
RBI does not have an office of its own, Government business is handled by PublicSector
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Banks as agents of the RBI viz. the State Bank of India and its Associate Banks
andNationalized Banks.
Note: -The Government of India has authorized four Private Sector Banks i.e. ICICI
BankLtd, AXIS Bank Ltd, IDBI Bank Ltd and HDFC Bank Ltd for Government business.
TheMinistry of Defence has not nominated any branch of Nationalized Bank/ Private
SectorBanks to function as treasury.
Concept of Focal Point Branch
The procedure of reporting, accounting and reconciliation of transactions is based onthe
concept of "One PAO- One Focal Point Branch". Under this concept, Focal Point
Brancheshave been introduced in the Ministry of Defence with effect from 01.10.93. In
thisprocedure, the dealing branches of State Bank of India are linked for the purpose of
reporting Defence transactions where the Defence Accounting Circle, which have been
authorized by the RBI to transact in Defence Proforma Account, is situated. The
nominatedFocal Point Branch acts as a dealing branch. It is responsible for prompt and
accurateaccounting of the transactions reported to it daily by all the dealing branches linked
to it.
Note :- Defence Accounting Circle is a Principal Controller’s / Controller’s Office or
any otheroffice like ZO (DPD) Chennai and AO (DAD) MoD (Civil), who have been
authorized by theRBI to transact in Defence Proforma Account by allotting a
transaction code and forwardmonthly balances appearing in the Defence Proforma
Account.
Dealing Branches
The dealing branches maintain the account of the Drawing & Disbursing Offices/PCsDA
/CsDA and prepare daily Payment and Receipt Scrolls in quadruplicate, separately foreach
account holder daily. Each day's scroll is given a running serial number for theaccounting
year from 1st April to 31st March. The Payment and Receipt Scrolls are identifieddistinctly
by prefix DEF (P) and DEF (R) for payment and receipts separately. The creditscrolls will
show receipt number/MIN given by the Bank to each MRO, the name of Depositorand its
amount; the debit scrolls will show the cheque No., date and amount of eachcheque.
Each dealing branch of State Bank of India/Associate bank will furnish the daily Scrolls duly
supported by the Military Receivable Orders and paid cheques in respect of theDefence
transactions occurring in their books to the FPB. In cases where, the Associate
bankconcerned has less than ten of its branches handling the transaction of
aPCDA/CDA/Defence Accounting Circle, they will directly report such transactions to the
FocalPoint Branch of the SBI accredited to the PCDA/CDA concerned.
Note: -The procedure of sending scrolls through the focal point branches however is
notapplicable to payments of Defence Pension made by Public Sector Banks.
Based on the daily scrolls received from the dealing branches, the Focal PointBranches will
prepare Main Scrolls and allot consecutive serial numbers to them. The MainScrolls duly
supported with the daily scrolls of branches and MROs / Paid cheques will besent to the
CsDA/CsDA daily for their verification and certification. Simultaneously, theaggregate of
receipts and payments in the Main Scrolls are incorporated in a daily memoand the same is
reported to SBI, GAD, SBI, and Mumbai/Link Cell of Associate Banks.
Two copies of the Main Scroll along with its original copy and the relativeinstruments
received from various dealing branches will be forwarded to thePCDA/CDA/Accounting
Circle on day-to-day basis.
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Wherever the FPBs of SBI act as Focal Point Branches for the Associate Banks also,the
Main Scrolls will be prepared separately for SBI and each of the Associates Bankconcerned
such as State Bank of Hyderabad, State Bank of Travancore etc.
Error Scrolls in respect of discrepancies either by the FPB or pointed out by theDefence
Accounts Circle will be prepared by the Focal Point Branches at the time ofcertification of
Main Scrolls or the Date Wise Monthly Statements and included in the nextDay’s
transactions.
Main Scrolls supported with daily scrolls will be received in the Accounts Section ofthe
PCDA/CDA Office. The Section will maintain a Register in manuscript for the datewiserecording of the receipt of Bank scrolls (with their No. and amounts-debit and
creditsseparately) and disposal of accompanying vouchers. Separate pages in the Register
will beallotted for each FPB.
Verification of DMS/MSS
The Focal Point Branch will prepare Date wise Monthly Statement (DMS), a summaryof all
the transactions undertaken during the month and submit the same to the
concernedDefence Accounting Circle. DAC will verify and reconcile the transactions noted in
the MainScroll Register and return the same after due verification to the Focal Point Branch.
The FPBwill forward verified copy of DMS to SBI, Govt. Accounts Department, Mumbai /Link
Cell ofthe Associate Banks. The adjustments on account of discrepancies/errors pointed out
by theDAC will be incorporated in a separate Error Scroll and reported to that office in the
nextday’s transactions.
On receipt of daily memoranda/online data in respect of transactions from variousFocal
Point Branches, the GAD, SBI, and Mumbai/Link Cell will consolidate the transaction fromall
FPB figures and report Receipts and Payments separately to RBI CAS Nagpur foreventual
settlement. A Monthly Statement of Settlement (MSS) will be generated andforwarded to the
DAC and FPB. The DAC will verify and return a copy of the same toFPB/SBI, GAD Mumbai
duly pointed out discrepancies, if any.
The RBI, CAS, will forward monthly statements of closing balances in the DefenceProforma
Account, for reconciliation with the Main Scrolls/DMS/MSS. A confirmation of the
closing balances is sent to the RBI CAS by the DAC concerned.
Note 1:-The detailed procedure of FPB is laid down in “Memorandum of Revised
Procedurefor Reporting and Accounting of Receipt and Payment Transactions of
Ministry of Defence”and reproduced in “Accounts Section” chapter of OM-II Vol-I.
Note 2:- The SBI has implemented Government Business Software Solution (GBSS)
for expeditious settlement of transactions.
Electronic Payments through e-FPB
SBI Cash Management Product Branch, Mumbai is authorized to act as e-Focal
PointBranch for all Non-Civil Ministries/Departments from Government e-payment Gateway
(GePG). It acts as a link and FPB for Ministry of Defence. Encrypted and digitally signed
payment files are uploaded to CMP which are credited to the beneficiary accounts in the
RTGS/NEFT within T+1 day (‘T’ is the date when SBI receives files from the Accounts
Officer’s Office). Downloadable e-Debit Scrolls/DMS and Settlement Reports are received
from the CMP portal. Settlement of fund with RBI CAS Nagpur is processed based on
mandate without any physical instrument. Reimbursement of Funds is claimed from RBI only
after the payment is affected.
E-Payments through Private Sector Banks/Public Sector Banks
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Four Private Sector Banks i.e ICICI Bank Ltd, AXIS Bank Ltd (formerly UTI), IDBI Bank Ltd
and HDFC Bank Ltd have been authorized by the RBI as their agents for conduct of all
types of Govt transactions. Ministry of Defence has not accredited these banks to act as
treasury for defence transactions. However, e-payments can be authorized from these
banks by issue of cheques drawn on RBI/SBI, subject to the condition that the payments
made through these banks is credited to the beneficiary’s account through ECS/EFT/NEFT
etc by T+3 days. The transactions routed through these banks will be adjusted in the
Defence Proforma Account through RBI/SBI.
Note 1:-‘T’ being the day on which the cheque is being handed over to the bank
before5.30 PM.
Note 2:-Adjustment of e-payment by PSBs other than SBI and private sector banks is
madethrough Defence Cheques drawn on RBI/SBI.
Defence Transactions through e-Ticketing
E-ticketing system in lieu of Railway Warrant, to Service Personnel has beendeveloped by
the CGDA via web services integration offered by IRCTC. Railway tickets canbe booked
over the internet by any unit through a centralized portal of the CGDA. Thesystem facilitates
entitlement check, authorization, payment, accounting and budgeting ofdefence travel. All
journeys being performed by the Armed Forces personnel on railwaywarrants have been
included in the system. The phase-I of the system, launched on 30-12-2009 covers only rail
travel of selected units under the Army, Navy and the Air Force. Thesubsequent phases of
the project envisage coverage to all the units and booking of airtickets too. Till the system is
100% operationalized, the existing system of accounting ofwarrants/connection vouchers
through inter-departmental adjustment, as mentioned in Para112 of Defence Account Code
will continue to follow. In e-ticketing, a predefined amount is deposited by the PCDA (Travel)
{Presently PCDA (R&D)} in the Revolving Account at the central level with IRCTC by issue
of Defence Cheques/e-payments through SBI, CMP etc. Confirmation of Defence
Cheques/CMP mandates are received through Scrolls and adjusted in the Defence
Proforma Account. Tickets booked by any unit are debited against this revolving account.
The money is recouped in the Revolving account periodically. The relevant Service Heads
are directly booked online.
RBI as FPB
Each RBI branch is independent in its functioning. The RBI PAD will follow theprocedure
applicable to the dealing branches and Focal Point Branches as the offices willfunction both
as 'Dealing Branch’ and 'Focal Point Branch’ in respect of Defence AccountingCircles. Each
RBI branch will act independently and render accounts through debit/creditscrolls. The
transactions effected by them in respect of PCDA/CDA/DAC concerned will beaccounted for
by them in their books and the balances in the accounts reported to CAS,Nagpur daily. The
Public Accounts Department of the RBI Branch will render daily scrolls etc.to the
PCDA/CDA/DAC concerned and submit Date wise Monthly statements to the
DefenceAccounting Circle for verification/certification and also attend to reconciliation work
thereof. The verified copies of the scrolls and DMS will be returned in the manner of SBI.
Compilation to be made under Suspense Head under Defence Proforma Account
on introduction of FPB Schemewith effect from 01-10-1993.
Since the Focal Point Branch Scheme is applicable only to Banking Transactions
viz.cheques & MROs and not to inter Government advices, category code 03 may be
prefixed tothe code Head RBI Suspense Unclassified (Code Head 00/020/83) in order to
identify thebooking and clearance. With effect from 1-4-98, Public Sector Bank Suspense
(Code Head00/020/76) has been opened for booking FPB Suspense. However, clearance of
thetransactions pertaining to the period prior to introduction of Focal Point i.e. 1-10-93
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willcontinue to be booked with category code prefix ‘77' to Code Head 00/020/83 and
to00/020/76.
DEFENCE TRANSACTIONS AT NON-BANK TREASURIES
For Defence transactions at Non-bank Treasuries and payments made at Banktreasuries
through the intervention of the Treasury Officer (e.g. payment of pensions toDefence
pensioners), the paid vouchers and M.R.Os. etc. along with the Schedules ofpayments (in
duplicate) and receipts (in duplicate) will be sent by the Treasuries directly tothe PCDA/CDA
concerned bimonthly on the 11th and the last of the following month, copiesof such
schedules being also sent to the respective Civil Accountants General. The schedulesof
payments and receipts will bear separate consecutive series for each PCDA/CDA.
Theseschedules will be received in the Accounts Sections and entered in a manuscript
registermaintained for this purpose for each Treasury. The total of this Register will be tallied
withthe total depicted in the inward monthly settlement accounts of the Accountant
Generalconcerned.
PCDA/CDA will send a duly countersigned copy of the aforesaid schedules (withoutthe
vouchers, etc.) to the Civil Accountant General so as to enable him to subsequentlyverify
the correctness of the original schedules sent to him directly by the Treasury.
Note-: The Treasury Officers will be responsible for obtaining vouchers and for
ensuringthat they are correct, contain sufficient details and are arithmetically
accurate.
ADVICE OF CLEARANCE
The total amount due to/from Department of Posts, Railways, Department of Supplyin the
Ministry of Commerce (stores transactions) should be advised monthly to the ReserveBank
of India, Nagpur by the PCsDA/CsDA in the formfor adjustment against the balances of the
above Department/Ministry, as the case may be. These advices should be sent to the
Central Accounts Section of the Reserve Bank of India, Nagpur at periodical intervals, viz.
on the 10th, the 20th and at the end of the month, the last one being always marked "Final".
As a general rule, the advice should be based on accepted vouchers or bills.
As far as possible, a consolidated advice embodying all the transactions relating to
Post/Railways/Dept. of Supply during the period should be prepared and sent to the
ReserveBank of India. Extracts of this advice to the Bank should be sent to
Post/Railways/Dept. of Supply concerned along with the supporting schedules or vouchers.
Monetary settlement in respect of Defence transactions which are adjustable in thebooks of
AG/P&AO Ministries & Departments of Central Govt. will be in cash.
MEMO OF CLEARANCE BY THE RESERVE BANK
The Reserve Bank will, on receipt of each advice, make the necessary adjustment in the
account of the party concerned and issue intimation both to the debtor and to the creditor
party in respect of transactions. It should be watched that there is no delay in the receipt of
such intimations from the Bank.
MONTHLY SETTLEMENT ACCOUNT
As soon as the accounts of a month are closed, the PCsDA/CsDA shall prepare a monthly
settlement account in the form given in Annexure 'B' for the amounts booked in his account
working up to the total net debit or credit advised to the Reserve Bank during the month and
send it to the Accounts Officer, Post/Railways/Dept. of Supply. This account willcover only
those items, the initiative for which rests with the Defence Department.
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Similarly, a monthly settlement account from the Accounts Offices of Railways/Posts,
Department of Supply, Ministry of External Affairs (in respect of London, Washington and
other Embassy transactions) with which the Defence has an account, will be received every
month in respect of items for which the initiative rests with them.
NOTE: The dates of dispatch by Defence Accounts Officers are 5th of the second
month forAccounts from April to February, 5th May for March preliminary and 10th
August for March Supplementary Corrections.
Proforma adjustments outside the Books of RBI
If any item of large magnitude (say, above Rs. 1, 00,000) affecting other department of the
Central Government which is not incorporated in the Defence Proforma Accounts of the
same year comes to light after the accounts of the financial year are closed by the Reserve
Bank, the details of such transaction together with an explanation of the circumstances
which led to the delay will be furnished by the PCsDA/CsDA to the Controller General of
Defence Accounts. After obtaining the permission of the Controller General of Accounts for
carrying out adjustment of those transactions they will be accounted in the accounts of the
same financial year, outside the books of Reserve Bank by correction to the "Reserve Bank
Deposits-Defence" on a proforma basis.
INTER-GOVERNMENT AND INTER-DEPARTMENTAL ADJUSTMENTS
Subject to the exceptions mentioned below and to any other exceptions which may
be authorized by the Comptroller and Auditor General, net payments only should be advised
to the other Accounts Officer.
In cases where the entire amount of a bill (Pay, establishment and pension) is debitable to
another Accounts Officer, the gross amount will be passed on to the Accounts Officer
concerned by the Accounts Officer paying the same; any recoveries on account of Incometax and other deductions being adjusted in the books of the paying Accounts Officer, or
where under any rule or order, such credits are adjustable in the books of a different
Accounts Officer, will be passed on to the Accounts Officer concerned. As for example: —
(i) All sums deducted from bills on account of "Income-tax" irrespective of the
Accounting Circle in which the bills were brought to account should be adjusted to the head
"Income-tax" and gross debits passed on in cases where bills are adjustable in other
account circles.
(ii) When Postal Life Insurance premium are deducted from the pay and
establishment bills debitable to another accounting circle, the gross amount of the bills
should be charged to the Accounts Officer concerned and the deductions on account of
premium be credited directly to the Postal Department. This principle will be applied to
Military pension bills paid at Post Offices.
(iii) Similarly, credits on account of various Provident Fund deductions should be
passed on to the Accounts Officer who maintains the respective Fund accounts and gross
amounts passed on to the Accounts Officer to whom they are debitable.
The cost of stationery supplied to and printing work done for Defence Services by
the Central Stationery Office and several presses of the Central Government is adjusted as
indicated below: —
(a) The Defence Units/Formations/Estt. will forward the accepted invoices to their
respective PCsDA/CsDA along with Contingent Bill and Certificate to the effect that the
article received by them are according to the indent placed on supplying agency for making
necessary payment by cheque to the supplying agency.
(b) As regards printing charges, the unit will submit the bill along with the printing bills
received from the Press to the respective PCsDA/CsDA for making the payment to the party
concerned. Audit Section of the Controller's Office/sub offices will receive the bills from the
96
Defence Units/Formations and after usual audit verification pay the amount of the bills direct
to the supplying agency by cheque and debit the concerned Service Head.
DETAILED ACCOUNTING PROCEDURE REGARDING ADJUSTMENT OFDEFENCE
PROFORMA TRANSACTIONS
REMITTANCES INTO BANKS AND TREASURIES ON MILITARY RECEIVABLE ORDER
Cash tendered by an officer of the Defence Services on Bank/non-bank treasury shall be
accompanied by a Military Receivable Order in triplicate. The original duly receipted will be
delivered to the tenderer and the duplicate sent to the PCDA/CDA concerned by
theBank/Treasury Officer through the Focal Point Branch. The triplicate will also be returned
tothe depositor.
The duplicate copies of M ROs along with the "Credit Scrolls"/"Schedule of Receipts"will be
received from Banks/Treasuries in Accounts Section in the Controller's Office and
scrutinized to see that the transactions pertain to that particular office. Wanting MROs willbe
called for from the Focal Point Branch. In cases, where MROs are lost in transit acertificate
in lieu will be furnished by the dealing branch to the Focal Point Branch in theformat.
Details of each MRO / MRO Identification Number (MIN) allotted by the Bank, inrespect of
remittances into Banks will be recorded in the "Register of MROs" maintained forthe
purpose. Separate folios will beallotted for each Bank which will be arranged in an
alphabetical order in the Register. Inrespect of remittances into Non-Banking treasuries the
register will, however, be maintainedState wise. Totals in the registers will be reconciled with
the totals as reflected in the CreditScrolls/DMS.
Duplicate copies of MROs received from Banks/Treasuries will be adjusted inAccounts
Section at the end of each month by debiting the head "Reserve Bank Deposit-Defence" and
crediting the Suspense Head "Remittances into Banks and Treasuries" asminus charge. The
month of adjustment will be suitably recorded in the appropriate columnof the register
referred above. Totals of the duplicate MROs adjusted will be reconciled atthe end of the
month with the credits appearing under the head, "Remittances into Banksand Treasuries"
in the Sectional Compilation as Minus Charge.
Original copies of the MROs (sent by the depositors) will be received in AuditSections
/Accounts Section / Sub-Offices and adjusted on a day to day basis by debiting
theSuspense Head "Remittances into Banks / Treasuries" and crediting the relevant
ServiceHead / AG / PAO Suspense Head etc. The original copies of MROs will after
adjustment bepassed on to Accounts Section each month along with a Statement of MROs
adjustedseparately in respect of each Bank / treasury.
Note: In the case of remittances into Banks or Treasuries of amounts adjustable by
the Pay& Accounts Offices (ORs) such as refund of excess money in imprests, refund
of Overpayments of Pay and Allowances of JCOs/ORs liquidation of debit balances
and estatesof deceased soldiers, receipted (i.e. original) copies of MROs will be sent
direct by the depositors to the P.A.Os concerned, who functioning as audit sections,
will adjust them inthe manner indicated above.
The fact of the adjustment of the original copies of MROs will thereafter be recorded
in the appropriate columns 9 and 10 of the register referred to at (b) above and their
totalsagreed with printed compilation. If entries exist in columns 6 to 10 of the register
againsteach MRO, the items will be treated as "linked and paired". In cases, where the MIN
notedin column 2 of the register, matches with the MIN in column 11 of the register, the
itemswill also be treated as "linked and paired". The endorsement of “linked and paired” will
bemade in the remarks column.
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Summary of the register prepared at the end of each month will show the amountscredited
to the Suspense Head ''Remittance into Banks / Treasuries'' (as recorded in column6 of the
register) and amounts debited to that Suspense Head (as recorded in column 10 ofthe
register) and also the balance remaining outstanding under the above Suspense Head.Total
of the unlinked MROs should tally with the net amount remaining under the SuspenseHead.
In cases where original copies of MROs have been received and adjusted, but forwhich the
corresponding duplicate copies have not been received, the matter regarding thenon-receipt
of the duplicate copies will be taken up with the Bank/Non-Bank Treasuries bythe Accounts
Section. In the event of any Bank/Non-Bank Treasury denying the deposit oftheamount, the
case will be referred to Audit Sections /Accounts Section concerned, whichwill be
responsible for further investigation and its final clearance in communication with theparties
concerned.
Similarly, a list of items remaining unlinked at the end of each quarter, dulysupported by
duplicate MROs will be extracted by the Accounts Section to AuditSections/Accounts Group
concerned for further action. With reference thereto the Audit Sections/Accounts Group
concerned will intimate to the Accounts Section, the month's accountin which the original
MRO received by that Section was adjusted after consulting theRegister maintained for this
purpose in the Audit Sections/Accounts Group concerned. Incases where original copies of
MROs are stated to have been lost/not received at all,necessary adjustment with reference
to duplicate copies thereof received by the AccountsSection from the Bank/Treasuries will
be carried out by the Audit Sections/Account Groupconcerned.
Note: To guard against any wrong payments being authorized, it will be ensured that
in allcases in which the payments become due on the basis of adjustments made with
referenceto original (i.e. Depositor's) copies of the MROs (e.g. refund of security
deposits, refund of unutilized amount of TA/DA/LTC advance, release of estate of
deceased, deserter etc.) theduplicate copies thereof have been received from the
Bank/Non-Bank treasuries.
REMITTANCES TO DEFENCE SERVICES FROM BANKS AND TREASURIES
i.e., CHEQUES DRAWN ON BANKS & TREASURIES
When a cheque is drawn/e-mandate issued, a Punching Medium will be prepared bythe
Audit Section by crediting the Suspense Head "Cheques and Bills / Pay and AccountsOffice
Electronic Advices (e-payment advices) and debiting the relevant expenditure / Service
Head.
Schedule III/ e-payment mandates will be sent to Accounts Section where the linkingof the
paid Cheques /e-Advice with the Schedule III / list of credited and uncredited itemswill be
done by manual process / OA module.
To facilitate linking of paid cheques with Schedule III in Accounts Section, adistinguishing
mark of the section issuing the cheque will be made on the cheque by the
"Disbursement" Section at the time of its issue.
Schedule III /e-mandates received in the Accounts Section from' D' Section etc. willbe
recorded Section-wise / office-wise and date-wise and will form the basis for linkingwith the
paid cheques / list of credited and uncredited items.
Paid cheques/list of credited and uncredited items along with the debitscrolls/schedules of
payments will be received in Accounts Section daily/bi-monthly from theBank/Treasuries.
These will be scrutinized to see that they pertain to the particular office.Wanting paid
cheques/details of credited and uncredited items will be called for from theFocal Point
Branch concerned/D Section. In cases where the cheques are lost in transit, acertificate in
lieu will be furnished by the dealing branch/Focal Point Branch in the format wth the help of
the distinguishing mark. The paid cheques will be sorted out section-wise, office-wise and
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date-wise and paired with thecorresponding entry in Schedule III. Suitable Note of the
linking having been done will bemade on Schedule III / list of credited and uncredited items
itself.
Accounts Section will prepare Punching Media once a month by debiting SuspenseHead
"Cheques and Bills (020/81)/ Pay and Accounts Office Electronic Advices (020/91)”
asminusReceipt by contra credit to the head "Reserve Bank Deposits- Defence (021/00)".
On receipt of the printed RD&R Heads compilation from EDP Centre, the totalamount
credited / debited to the Suspense Head “Cheques and Bills / Pay and AccountsOffice
Electronic Advices" will be reconciled with those appearing in the Schedule III/e mandates
and the sum of total paid cheques received and cancelled and e-itemscredited/uncredited
and cancelled during the month, respectively. When a cheque / emandate"is cancelled, the
Audit Section concerned will intimate the Accounts Section, thedetails of the same including
the month's account in which the adjustment is made.
Note:-Net amount outstanding under head “Cheques & Bills / Pay and Accounts
OfficeElectronic Advices” will be reviewed and reconciled every month at the time of
effecting theabove agreement with the compiled actuals.
The cheque shall be payable at any time within a period of three months from thedate of
issue; thus a cheque bearing 20th January is payable any time up to the 19th April. When
cheques remain unlinked in Schedule III for more than 90 days, theprogressive number of
unlinked cheques, having expired validity period, will be extracted bythe Accounts Section
and sent to the concerned Focal Point Branch by 10th of the monthwith a copy to the
concerned dealing branch (Cash Assignment Holder branch/treasurybranch on which
cheque drawn) indicating complete particulars of the cheque like serialnumber, date of
issue, amount, particulars of the treasury on which drawn, requesting themto furnish
certificate of payment in Annexure ‘C’. On receipt of confirmation of payment ofcheques in
the prescribed format, Punching Medium will be prepared for clearing PSBSuspense
(00/020/76) or RB Suspense (Unclassified) (00/020/83), as the case may be, andhead
‘Cheques and Bills’, after having ensured that the suspense for non-receipt ofcheques/debit
scrolls had been booked. After preparation of PM, discrepancies in theRegister of Main
Scroll/Debit Scroll/RB Deposits Register of Unlinked cheques will be scoredoff indicating TE
No and month. In case, it is confirmed by the Focal Point Branch that thecheques have not
been paid, the matter will be referred to the concerned Audit Section/Sub-Office. The
Punching medium will be prepared accordingly.
With reference to the list of unlinked cheques received from the Accounts Section, the Audit
Section should ask the payee to either return the time-expired cheque or explain the causes
for its non-encashment. If as a result of this enquiry, the cheque is reported as lost, the
Bank/Treasury Officer concerned should be issued a stop payment order and action taken
to cancel the cheque and wherever required issue a fresh cheque in lieu.
When a cheque/Pay and Accounts Office Electronic Advices is cancelled and a freshone is
issued in lieu, the amount will be adjusted by credit to the head "Cheques and Bills /Pay and
Accounts Office Electronic Advices” for the cheque / Pay and Accounts OfficeElectronic
Advice drawn and debit (Minus Receipt) to the head "Cheque and Bills / Pay andAccounts
Office Electronic Advices" which was credited at the time the cancelled chequewas drawn.
When a cheque / Pay and Accounts Office Electronic Advices is cancelled / lost /received
unpaid and no fresh one is issued in lieu, the amount will be adjusted by debitingthe head
"Cheques and Bills/ Pay and Accounts Office Electronic Advices" (Minus Receipt)the
relevant service head operated at the time of issue of cheque being credited asreduction to
expenditure in the accounts of the month in which the cheque is cancelled /reported lost /
received unpaid.
Note: Before issuing a fresh cheque in lieu of a lost cheque, the AT Section
concerned shouldobtain a non-payment certificate from the Accounts Section in
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addition to ensuring other conditionssuch as issue of a stop payment order to the
Bank concerned and obtaining indemnity bond fromparties other than Govt.
Departments and Banks. The Accounts Section will furnish non-paymentcertificate
after verifying the Schedule III and record a suitable note on the Schedule III
regardingissue of the NPC. The detailed instructions regarding issue of NPC are
contained in Rule 165 andRule 165 A of CTR Vol-I.
EXCHANGE ACCOUNTS BETWEEN PRINCIPAL CONTROLLER/CONTROLLERS OF
DEFENCE ACCOUNTS
The Defence Exchange Accounts will be operated for adjustment of transactions ofthe
following types only. In all other cases, the receipts and charges pertaining to
DefenceServices will be finally compiled in the books of the Controllers by whom they are
realized or
incurred:(a) Transactions pertaining to Debt, Small Savings Provident Funds, Loans and Advances
Deposits and Advance, Suspense and Remittances head;
(b) Transactions for the settlement or adjustment of which a particular PCDA/CDA iscentrally
responsible e.g. ILAC and Embassy transactions which cannot be booked to finalheads by
PCDA, New Delhi such as GPF recoveries e-ticketing transactions booked buy thePCDA
(R&D) which are recoverable from the IRLAs of the Service Personnel etc.;
(c) Imprest Advance Payments to Naval /Air Force personnel from Army sources andvice
versa. Payments made by Regional Controllers, PCDA (Navy), PCDA (Air Force) andPCDA
(O) towards Army Imprest are not to be passed on through Defence ExchangeAccounts.
Such amounts will be transferred to the books of the Regional CDA concerned bythe EDP
Centre, CGDA DelhiCantt annually with reference to prefixes operated to codehead
00/018/65 such as 04, 06 and 12 to identify PCDA (SC) Pune, PCDA (WC) Chandigarh
andPCDA (NC) Jammu respectively.
Note-1:-Expenditure debitable to locally controlled heads incurred by one
PrincipalController/Controller on behalf of another (except the expenditure related to MES
which willcontinue to be passed on through Defence Exchange Accounts) will be finally
brought toAccount against the relevant Service Heads concerned by the Principal
Controller/Controllerincurring the expenditure instead of debiting it through Defence
Exchange Accounts againstthe Principal Controller/Controller on whose behalf the
expenditure is incurred. A monthlystatement of such expenditure will however, be furnished
by the former Controller to thelatter Controller to enable him to watch the progress of
expenditure against the allotment.
Note-2:- Adjustment on account of bulk issue of stores and equipment from one service
toanother (i.e. between Army, Air Force and Navy) together with the cost of incidental
charges(viz. Rail, Freight, Sea Freight etc.) incurred thereon by the supplying services will
be madeby the Principal Controller/Controller of the receiving service in his books (for
exceptions seenotes 3, 4, and 5). Such inter-service transactions will be adjusted as
"deductions" fromexpenditure under the relevant "deduct head" regardless of the year of
transaction.
Note-3:-All issues from Ordnance and Equipment Factories to Army, Navy and Air Force
willbe priced and straightaway debited to Service heads of Army, Navy and Air Force by
contracredit to deduct head of O.F. Organization by the Accounts Officer attached to each
Factory.
Note 4:-The provision of Note 2 above does not apply to issue of stores and equipment
toInstitutions like the Joint Services Wing of National Defence Academy for which no
interdepartmental adjustment will be made as such institutions though placed under
theadministrative control of any one of the Services, are intended and used for the benefit of
allthe three Services.
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Note 5:- Transfers of unserviceable and salvaged stores between Army, Navy and AirForce
will be made without any financial adjustment.
Note 6:-'Services' rendered by Army to the Air Force and the Navy and vice versa
aretreated as free. For instance, no inter-department adjustments are to be made in respect
ofthe costs of recruiting, accounting establishments, medical treatment, services rendered
byRepair Organizations, transport provided by Army Service Corps from Army sources,
issue ofstock mixtures, sera, vaccines and emergent requirements of expendable medical
storesobtained from hospitals for administration to patients etc.
Note 7:-Advances of Pay and Travelling Allowances to individuals transferred from
thepayment of one PCDA/CDA to that of another will normally be finally adjusted in
theaccounts of the PCDA/CDA who pays the advances, unless the transaction falls
underclauses (b) or (c) above. A note of the advances will, however, be made on the last
paycertificates of the individuals or communicated through I.A.F.A. 524 so that the
PCDA/CDAin whose payment they are transferred may affect recoveries from them.
Exceptions
Payments on account of the following common services will be charged to therespective
services (Navy or Air Force Estimates) as the case may be:—
(a) Pay and Allowances, transportation charges, ration and equipment issued inreplacement
(i.e. other than initial issues or issues to complete deficiency of authorized scales) and
miscellaneous charges, in respect of Ministry of Defence, Security CorpsPlatoons serving
with Navy and Air Force.
(b) Departmental charges covering the cost of supervisory establishments, and tools
andplants at 1/2% and 11/2 % respectively on the cost of works executed by the MES for
theNavy and Air Force.
Note 8 :-Amount of travelling allowance which is paid in advance or on final adjustment
ofthe travelling allowance bills to Officers and others of the Defence Accounts
Departmenttransferred under the orders of the Controller General of Defence Accounts from
the officeof one PCDA/CDA to that of another and which are to be met from the Reserve
Fund at thedisposal of the Principal Controller of Accounts (Factories) will be finally adjusted
in theAccounts of the PCDA/CDA by whom they are paid and communicated to the
ControllerGeneral of Defence Accounts through quarterly statements. Advances of
travellingallowances paid, will however, be intimated to the Controllers who finally deal with
theTravelling allowance bills.
Note 9:-The expenditure on railway warrants and credit notes will, subject to the
generalexceptions enumerated above, be finally adjusted by the Principal Controller of
Accounts(Factories) in his own books against the appropriate service heads except in the
case ofPCDA (R&D) booking Railways Warrants and Concession Vouchers. The charges in
respectof credit notes for conveyance of MES stores for works will be debited by the
PrincipalController of Accounts (Factories) to the Regional Controller concerned through the
DefenceExchange Account. Sea and inland water charges as well as the cost of road
warrants will,
unless covered by Note 2 above, be finally adjusted by the incurring the charges in theirown
compilation. The PCsDA/CsDA will, however, send to each manufacturing establishmentby
the 15th of the month following each quarter, a statement showing particulars of thecharges
pertaining to it which have been compiled by them during the preceding quarter. Asregards,
rail charges audited and authorized for payment on IAFA 468 etc. and recoverieseffected at
the instance of the Principal Controller of Accounts (Factories); the PCsDA/CsDAwill finally
compile those charges or recoveries in their own compilation under the headsindicated
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thereon. EDP Centre, CGDA, Delhi Cantt will furnish a copy of All India compilationin
respect of the detailed head for Rail charges to the Principal Controller of
Accounts(Factories) monthly so as to enable them to take the total amount booked under
that head into consideration while framing budget and other periodical estimates
DEFENCE BUDGET, ESTIMATES & CONTROL OVER EXPENDITURE
The Defence Services Budget Estimates are presented in six Demands for Grants;Fiveon
Revenue Account (one each corresponding to Major Heads 2076, 2077, 2078, 2079&
2080) and one on Capital Account (corresponding to Major Head 4076).
Note: - In addition to the above grants, two grants relating to civil i.e Defence
(Pension) and MOD (Civil) are also handled by the Ministry of Defence (Fin).
The expenditure, for which provision is made in these Estimates, falls broadly into
the following categories:(1) Pay and allowances of regular personnel of the Armed Forces.
(2) Payments to Industrial Establishment employed in store depots, factories, etc.
(3) Transportation charges.
(4) Miscellaneous expenses.
(5) Payment for stores.
(6) Works expenditure and
(7) Pensions.
Expenditure falling under category (1) above represents for the most part, obligatorycharges
dependent upon the strength and composition of the Defence Services maintainedfor the
defence of the country. Ministry of Defence, Government of India decides on
thepolicyregarding strength and composition of the Defence Services and hence
theresponsibility for implementing the decision and ensuring proper control over expenditure
isvested with various controlling authorities at Armed Forces Headquarters etc., and no
distribution of provision is made to subordinate authorities. The accounting heads,
underwhich the expenditure of this nature is compilable, are called "Centrally Controlled
Heads".Expenditure falling under categories (2) to (6) enumerated above is, in
general,susceptible to control against budget provision by the various administrative and
executiveauthorities subordinate to the Government of India. Some part of the total budget
provisionfor these categories of expenditure are placed at the disposal of local
administrativeauthorities through budget allotments, while the remaining part is controlled by
theauthorities at the Armed Forces Headquarters. The accounting heads under
whichexpenditure against budget allotments made to local administrative authorities is
compilableare called "Locally Controlled Heads". A list of such heads is given in CHB.
Estimates for Centrally Controlled Heads
Estimates of receipts and charges in respect of all the centrally controlled heads
areprepared by the concerned Branches/Directorates etc. at the Armed
ForcesHeadquarters/Departments and submitted for consolidation to Financial
PlanningDirectorates, who in turn submit the consolidated requirements to the concerned
IntegratedFinance and Ministry of Defence (Finance/Budget).
Estimates for Locally Controlled Heads
Estimates for locally controlled heads relating to Army are prepared by Headquartersof
Commands and Areas and Commanders of units and formations which are
directlyadministered by Army Headquarters and by similar authorities on the Air Force and
Navysides in regard to the locally controlled heads under those Services. These estimates
arerendered to the Principal Controllers/Controllers of Defence Accounts concerned for
checkand onward transmission to the respective Branches/Directorates at Armed Forces
102
Headquarters,so as to reach them well before the due dates indicated in Para 194 of
Accounts Code.
Note 1: For estimates in respect of MES heads, MES Regulations should be referred to.
Note 2: The estimates will distinctly show the 'Charged' portion and the 'Voted' portion.
Note 3: Important corrections if any, to the Revised Estimates for the current financial
yearand the Budget Estimates for the ensuing financial year coming to notice after
thesubmission of original estimates will be intimated by the local controlling authorities
through the PCsDA/CsDA concerned as early as possible as but not later than 15th
January.
The PCsDA/CsDA, after checking the estimates prepared by the local controllingauthorities,
will record any corrections which they may consider necessary to thoseestimates with
reference to past actuals or any other known factors or fresh sanctions ofcompetent
authorities or when the progress of current expenditure warrants suchmodifications giving
full reasons in support thereof, and transmit the estimates to theauthorities concerned at
Armed Forces Headquarters through the Command Headquarterswhere necessary.
The estimates of receipts and charges in respect of Ordnance Factories organizationare
prepared by the General Managers etc. of the concerned factories and, after scrutiny bythe
local Accounts Office, are transmitted to the Director General of Ordnance Factories.
TheDirector General of Ordnance Factories consolidates the various estimates and submits
theconsolidated estimates, after vetting by Controller of Finance, Ordnance Factory Board
toDepartments of Defence Production and Supplies, Integrated Finance and Ministry
ofDefence (Finance/Budget).
Similarly, the estimates in respect of Defence Research and DevelopmentEstablishments
are prepared by the Directors of the concerned Laboratories/Establishments.
The estimates are checked by the local Accounts offices and transmitted to the DRDO
Headquartersfor consolidation and submission to Integrated Finance and Ministry of
Defence(Finance/Budget).
BUDGETARY CONTROL OVER DEFENCE EXPENDITURE
The main features of the budget and accounting heads relating to the DefenceServices are:
(i) The expenditure on Revenue Account is distinguished from that on Capital
Account.Generally; the expenditure on Revenue Account represents the recurring or
operatingexpenditure, while the expenditure on Capital Account is used for creation of
durable capitalAssets.
(ii) The classification of expenditure on Armed Forces is generally according to thenature of
charge, and not with reference to the units/formations on which it is incurred.Thus pay and
allowances of army personnel are booked to the same minor head, irrespective of
unit/formation where they may be serving.
(iii) In case of certain distinct organizations, established for a specific role, the
entireexpenditure on the organization is sought to be identified in the budget/accounts,
irrespective
of the nature of expenditure. Thus, separate minor heads exist for DirectorGeneral Quality
Assurance, Military Farms, National Cadet Corps, Rasht Riya Rifles etc., whereunder all
categories of expenditure (like pay and allowances, transportation, stores, worksand
miscellaneous, etc.) on these organizations are included.
(iv) Inter-Services adjustments are made for the cost of stores and equipment etc.supplied
from one Service to another, so that the expenditure on each Service is availabledistinctly.
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(v) The accounting heads have been so arranged as to enable the administrativeauthorities
to have sufficient data, necessary for the exercise of closer and more effectivebudgetary
control over expenditure.
The Demands for Grants for meeting expenditure on Defence Services are passed
byParliament each year, and within the amounts of these Demands for Grants, Ministry
ofDefence arranges for financing of services for which that Ministry is responsible.
Theprovisions made in these Demands for Grants are based on estimate of requirements,
withinthe constraints of total resources available and the demands on these resources.
Soon after the presentation of the Demands for Grants in the Parliament, theauthorities at
Service Headquarters and other central controlling authorities will notify the Allotments
under the locally controlled heads to their lower formations. These allotments willbe treated
as 'Provisional' and no expenditure against them can be incurred till passing ofthe Demands
for Grants.
VOTE ON ACCOUNT
Under Article 114 (3) of the Constitution, no amount can be withdrawn from theConsolidated
Fund without the enactment of a law by Parliament. Therefore, after the Demands for Grants
are passed, Parliament's approval to the withdrawal from the Consolidated Fund of the
amounts voted and of the amounts required to meet the expenditure charged on the
Consolidated Fund is sought through an Appropriation Bill.
The process of detailed consideration of the Demands for Grants is not completed before
the commencement of a new financial year. To enable the Government to carry on its
normal activities from 1st April till such time as the Appropriation Bill is enacted, a Vote on
Account is obtained from Parliament through an Appropriation (Vote on Account) Bill.
Generally, the provision included in the "Vote on Account" represents the sums required for
meeting the expenditure likely to be incurred during April and May, i.e., broadly one sixth of
the estimated gross expenditure included in the Demands for Grants. The period for which
"Vote on Account" is taken may vary depending upon the situation. After the Appropriation
(Vote on Account) Bill is passed and assented to by the President (generally before the
commencement of the new financial year), the controlling authorities have to ensure that the
expenditure in excess of the provision in Vote-on-Account is not incurred.
Note 1: The purpose of the 'Vote on Account' is to keep the Government
functioning,pending the passing of the Demands for Grants for the full financial year.
Expenditure on'new services' should not, therefore, be incurred before the grants for the full
year arepassed and the connected Appropriation Bill is enacted.
Note 2: Some delay may occur in certain type of cases in the issue of provisional
allotmentletters. In such an event, while taking appropriate action to call for the allotment
letters,requests for provisional payments in the absence of allotment letters may be
considered bythe Controllers under the discretionary powers vested in them in Para 53 et.
Seq. of theDefence Audit Code (1992).
Note 3: In certain cases where the expenditure in the months of April and May is more
ascompared to other months of the year or the expenditure is of an obligatory nature
whichcannot be deferred it may not be possible to restrict the expenditure to 1/6th of the
BudgetEstimates for the particular head. The Controllers may authorize provisional
payments insuch cases also so long as the "Vote on Account" in respect of the Demand for
Grant as awhole is not exceeded.
CONTROL OVER EXPENDITURE
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The expenditure against Centrally Controlled Heads is monitored by controlling authorities at
Armed Forces Headquarters and no distribution of provision is made to subordinate
authorities for these heads. It is in the case of expenditure compilable to "Locally Controlled
Heads" that the Defence Accounts Department, jointly with the administrative and executive
authorities, plays an important part in keeping a watch on the progress of expenditure
against the sanctioned allotments.
Note 1: 67 % of the budget allocation should be booked by the end of December.
Theexpenditure ceiling of 33 % in the last quarter and 15 % of Budget Estimates in the
lastmonth viz. March should be strictly adhered to.
Note 2: Demands for Grant for Army, Navy, Air Force, Defence R & D and Defence
Capitalhave been brought under the Modified Cash Management System.
To enable the administrative Branches of the Armed Forces Headquarters and the Sections
of the Ministry of Defence (Finance) to watch the progress of expenditure against the grants,
EDP Centre, CGDA, New Delhi will furnish to them relevant extracts of compiled actuals
from the printed All India Compilations for Service Heads by 10th of the month following that
to which the actuals relate.
ADVANCES AND SUSPENSE
LOANS AND ADVANCES
Disbursements of the following descriptions are treated as "Advances”:
(a) All payments made which are subject to recovery or adjustment, other than advances of
pay, pension or traveling allowances or any other advances which are compilable to Service
Heads of Accounts.
(b) All payments made by Military Disbursing Officers into Military Treasure Chests, and vice
versa.
(c) Permanent Advances sanctioned for current expenditure, such as the local purchase of
petty stores, contingent charges and payments for extra temporary labour.
The Head "Advances" should not be used as a Suspense Head for showing debits or
charges which owing to their not being clearly described, cannot, in the first instance, be
compiled to the correct Head of account. In such cases, the expenditure should be compiled
to the Service Heads to which they appear to pertain; the readjustments being made, if
necessary, on receipt of full information as to the nature of the charges or debits. If the
details are insufficient to allow of such an adjustment or the final allocation is under
settlement, the items should, pending their final allocation to the proper head, be adjusted
under 'Suspense Accounts'.
Payments specially sanctioned by Government subject to recovery, with or withoutinterest,
are treated as "Loans".
Before the payment of an advance is admitted in audit, or when a bill for an advance or loan
is received, it should be seen that the advance has been sanctioned by the competent
authority. Necessary notes will be made in a Demand Register of all advances to watch their
recovery.
If an advance or loan or any portion thereof is outstanding against any person or unit,
transferred from the audit circle of one Principal Controller/Controller of Defence Accounts to
another, it will be communicated to the Principal Controller/Controller of Defence Accounts
of the circle to which transferred by debit (minus credit) through the Defence Exchange
105
Accounts to enable him to watch recovery by a corresponding credit being taken to the
Heads affected.
If a Government Servant is transferred to the Defence Services from the audit area of a
State A.G. and any loan sanctioned is outstanding against him, the amount of the loan is
retained in the books of the AG and the recoveries effected by the Defence Accounts
Department are passed on to the AG through cheques. The same procedure is to be
followed in case of an individual transferred from the Defence Services to the audit area of a
State AG with outstanding balances of loan granted to him.
In case of transfer of a Central Government Servant from one Department to
anotherDepartment of the Central Government the balance outstanding against him on
account of loan sanctioned under conveyance advances will be transferred to the books of
the Accounts Officer to whose audit circle the Government Servant is transferred.
In case of house building loans, where Government servants are transferred from one
Department to another Department of the Central Government after the drawl of the entire
amount of the advance, the balance of advances outstanding against the Central
Government servants at the time of the transfer, will be transferred to the new Accounting
circle. At the time of transferring the balances, the full particulars of month wise recoveries
effected in his circle as well as the previous circle of Account, if any, will be intimated so as
to enable the latter to determine the correct amount of interest accruing on the loans. The
transfer of balances will be effected in the Central Section of Accounts under the Head of
Account "F-Loans and Advances by Central Government-Loans to Government ServantsHouse Building Advances" as plus and minus credits in the books of transferring and
receiving Accounts Officers respectively without affecting the debits for the year and the
budgetary position thereby. Instances may also arise when Government Servants are
transferred, after the disbursement of one or more installments of the advance, to a different
circle of Accounts before they draw all the remaining installments of the loan. In such cases
the part— disbursement made may remain outstanding in the books of the Accounts Officer,
who paid the first installment of the Advance and the Accounts Officer, who paid the second
and subsequent installments should pass on the debits to the first Accounts Officer. The
debits for all installments of the loan, thus accumulated in the books of the first Accounts
Officer, will be passed on after disbursement is completed, to the new Accounts circle in
which the officer is working for adjusting recoveries made from the salary of the loanee.
Credits in respect of recoveries, if any, affected from the Central Government Servants
before the disbursement of the loan is completed, will also be likewise passed on to the first
Accounts Officer for necessary entries in his books.
Note:-The procedure of transferring the outstanding balances of advances will not be
applicable in respect of other types of advances (such as advances on account of purchase
of fan, warm clothing and advances for natural calamities etc.). The procedure laid down in
Para 266(a) above will be applicable in such cases.
To obviate references, particulars regarding the date, when advances for the purchase of
house, motor cars, motor cycles, computer etc. were made and whether interest is
chargeable or not, should be entered in the Last Pay Certificate along with the outstanding
demands, when an individual is transferred to the payment of another Accounts Officer. In
case of advances which bear interest, the amount of interest accrued up to the date an
individual was last paid should also be noted on the Last Pay Certificate inter-alia indicating
date of initial payment, number of instalments and DID Schedule number.
When an advance or loan is recoverable in installments, prompt action will be taken to
enforce recovery if credit of each installment is not afforded as it falls due. If, however, the
amount involved is considerable, recovery will not be enforced, but the matter will after a
reasonable lapse of time and after necessary action has been taken by the Principal
Controller/Controller to effect recovery, be reported to the Government of India who
sanctioned the loan.
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All advances (other than those which are being regularly recovered by installments)
remaining unadjusted for three months or more, will be brought to the notice of the Principal
Controller/Controller of Defence Accounts by the Gazetted Officer-in-Charge to enable the
former to take such action as she/he may consider necessary to affect their speedy
settlement.
Note: - The Accounts Section is equally responsible as Audit Section for
watching adjustment of advances. For this purpose, full particulars of non-recovery
of an installment of a particular advance should be ascertained by the Accounts
Section from the Audit Section concerned and noted in the remarks columns of the
Register maintained by them (the Accounts Section).
All recoveries effected in adjustment of advances will be credited in the compilations to the
same heads as the advances when originally made were debited. This rule is to be
observed even in those cases in which the recoveries appear in a class of account other
than that in which the original advances were charged.
Every effort must be made to include in the accounts of a year all expenditure relating to that
year, and to by this end, all outstanding advances must, as far as possible be adjusted
before 31st March in case of advances which are not recoverable in cash but are to be
adjusted on rendering accounts, steps should be taken to adjust any amounts which could
not be settled by 31st March in March Supplementary or March Supplementary correction
accounts of that financial year.
DIFFERENT TYPES OF ADVANCES IN DEFENCE SERVICES
Advances are classified in Defence Services Accounts under the following heads - I.
SECTOR L- Suspense & Miscellaneous Sub-Sector (c) Other Accounts Major Head 8672Permanent Cash Imprest II.
SECTOR -"K- Deposits and Advances" Sub Sector (c)- Advances Major Head— 8551 Defence Advances Minor Head-101:- (1) Advances-Borders Roads Treasure Chest. (3)
Advances -Field Cashier. (4) Advances-Adjustable in PCsDA/CsDA Offices. (5) Advances Pay Accounts Offices. (6) Advances- Other Repayable (Non-voted). (7) Advances—Imprest
Holders. (8) Advances –Miscellaneous.
III. SECTOR - "F- Loans and Advances”
1) Major Head -7610-Loans to Government Servants etc Minor Heads: - (1) 201House building Advances (2) 202-Advances for the purchase of Motor
Conveyance (3) 202-Advances for the purchase of Other Motor Conveyances.
(4) 203- Advances for the purchase of Other Conveyances. (5) 204-Advances for
the purchase of Computer (6) 800-Other Advances.
2) Major Head 7615-Miscellaneous Loans. Minor Heads: - (1) 215-Regimental and
other Loans - Defence.
Permanent Advances
All advances of a permanent nature for current contingent charges will be held in the names
of officers to whom they are made, and they will be personally responsible for these
advances until accounted for by them in the manner indicated in Pay and Allowances
Regulations for the Army, Navy or Air Force as the case may be. These advances will be
recorded in a register in IAFA 197. If an advance has been allowed as a temporary
arrangement, the fact will be prominently indicated against the entry in the above register
and its adjustment will be carefully watched.
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Border Roads Treasure Chest Advances
The Border Roads Treasure Chest Holder functions as a small treasury to hold and supply
the requirements of cash of Task Force Commanders etc. ordinarily located in forward areas
where Treasury facilities do not exist or where the Civil Treasury cannot cope with work
relating to supply of funds to the GREF. Treasure Chest Officers obtain cash from Cash
Assignments accounts. PCDA (BR) provides Cheque Books etc. to Treasure Chest Holder
so as to enable him to draw funds from civil treasury. The officers authorized to draw cash
from the Treasure Chest Holder are provided with Border Roads Cash Requisition Form
(BRDB No I) by the Treasure Chest Holder on receipt of application from them. The
Treasure Chest Holder submits a balanced account on form BRDB No. 11 daily to the
Accounts Officer concerned, showing the opening balance cash received during the day and
the closing balance. The schedule of drawings from and remittances to Military Treasure
Chests, received from Disbursing Officers, will be agreed with the figures shown in the cash
accounts of the Military Treasure Chest Officers.
(2) Advances—Field Cashiers' Account Funds provided to a Field Cashier are debited to
this head by the Principal Controller of Defence Accounts (O), Pune who makes the
payments. When the Field Cashier renders his account, the advances made to Imprest
Holders on Requisitions IAFF-1036 and to Officers on personal cheques IAFF-1034 are
adjusted against the relevant heads under Advances (viz. Advances-Pay Accounts Offices
or Advances adjustable in PCDA/CDA Offices, as the case may be) by contra credit to the
head "Advances—Field Cashiers' Account"
(3) Advances adjustable in PCDA/CDA Offices Advances of pay etc. paid to Officers on
personal cheques IAFF-1034 by a Field Cashier or an Imprest holder are debited to the
head "Advances adjustable in Principal Controller/Controller of Defence Accounts Offices".
This head is relieved when the advances are recovered through the IRLAs by the concerned
Principal Controller /Controller.
(4) Advances—Pay Accounts Offices Cash required by an Imprest Holder for paying
advances of pay, etc. is obtained by him either from a Field Cashier or a Regional
Controller’. The amount paid is debited to the head 148 "Advances—Pay Accounts Offices"
by the Principal Controller of Defence Accounts (Officers) Pune adjusting the Field Cashiers
account or by the Principal Controller/Controller paying the advance, as the case may be.
This head is relieved by the Pay Accounts Offices concerned when recoveries of advances
of pay, etc. paid to men are effected through the IRLAs of the personnel, or when other
charges paid out of the Imprest are charged against the relevant heads.
(5) Other Advances—Repayable (non-voted) Amount paid by the UNO for the Indian
contingent of UN troops—at Cambodia, Somalia Mozambique, Sudan etc., and the amounts
paid to such personnel as advances as well as payments made for stores etc., will be
accounted under this head as Receipts and Payments respectively.
(6) Advances—Imprest Holders' Accounts Funds provided to Services and Supplies
Imprest Holders of the Army, Navy and Air Force will be debited to this head. The advances
will be cleared by per contra debit to the Service Heads, etc. on receipt of monthly accounts
from the Imprest Holders.
(7) Miscellaneous Advances Transactions which are of the nature of debts due to
Government but which do not come under any of the Heads of Advances specified above
will be compiled to the head "Miscellaneous Advances".
(8) Other Advances This is an advance redrawn against any of the above advances owing
to losses through misappropriation, de-falacation embezzlement etc.
INTEREST BEARING ADVANCES
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A register in IAF (CDA)-51 will be maintained to watch the recovery of advances for house
building, purchase of houses, motor cars, other motor conveyances, computer other
conveyances and the interest payable thereon.
Mortgage bonds are received in connection with advances for purchase or construction of
houses, purchase of motor cars, motor cycles and computer. Such bond will be looked for
when a charge for the advance appears in the accounts and it will be carefully examined to
see that it is in order. It will then be entered in a register in IAFA- 505, and retained in safe
custody by the PCDA/PCDA until the advance is finally repaid, when the bond together with
the deed of re conveyance signed by the PCDA/CDA on behalf of the President will be
returned to the mortgager.
In the case of advances for the purchase of motor cars, computer and other conveyances,
PCDA/CDA should insist on the production of receipts showing the actual cash paid for the
motor car, cycle, etc. and if the amount is found to be less than the amount advanced the
difference should be recovered at once; it should also be seen that evidences of insurance
and renewals where necessary, are regularly furnished.
The rate of interest to be charged on advances is fixed by the Government of India, Ministry
of Finance, separately for each financial year and communicated to all concerned. The rate
of interest so fixed will be applied to all advances granted during a particular financial year
(irrespective of the financial year in which they are liquidated) and will be calculated on
balances outstanding on the last day of each month. The amount of interest calculated will
be recovered in one or more installments after the whole of the principal has been repaid.
Each installment of interest should not be appreciably greater than the installment by which
the principal was recovered.
SUSPENSE ACCOUNTS
Receipts and payments which cannot, in the absence of further information or orders, be
allocated to any head of account, and where the heads to which the transactions are likely
to be adjusted are not known, will be taken to the Head "Suspense Account". When
information is received subsequently, the correct head of account will be credited or debited
by clearing the amounts compiled under the head "Suspense Account". The charges under
the head "Suspense Account" will consist only of items for which full particulars that will
enable the accounts office to classify them properly, have not been given. The
receipts/charges appearing in the Settlement Accounts which are not susceptible of final
adjustment will be adjusted in manner indicated in Para 103.
Note 1: No sums should ordinarily be credited to Government by debit to a suspense
head; credit must follow and not precede actual realization.
Note 2:- Orders of the Addl. CDA /Jt.CDA in Main office and senior most officers in
the sub office will be taken before an item is classified to the Suspense Head.
The clearance of the transactions taken to the Suspense Account (except MES transactions
vide Note 2 below) will be watched first by means of broad sheets in IAFA-195 for original
debits and clearance through minus debits and secondly in IAFA-525 for original credits
and clearance through minus credits.
Note 1:-The balance in respect of the transactions under the head "Suspense
Account" to be shown in the Review of Balances will be the net balance worked out by
taking into account the original and adjusting entries of both debits and credits together but
the 151 explanation of the net balance will show the details of original debits and original
credits separately.
Note 2:-The clearance of MES transactions will be watched by means of a suspense
register maintained by Accounts Section of a Garrison Engineer's Office in IAF (CDA)-258
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for each MES Division as required by MES Regulations. A similar register in IAF (CDA) 258
will be maintained to exhibit the transactions in respect of initial amounts advanced on
account of Cash Assignment as well as permanent addition or reduction thereto, which fall
under the head "Other Accounts"—Departmental Balances-"Cash Balances."
As in the case of advances, monthly agreement of the postings in the Suspense Register
will be made with the related figures appearing in the R.D.R. Heads compilation, and the
balance at the end of financial year will be reconciled with the ledger balance. A monthly
agreement between the compiled actuals and the postings in the Register of Suspense
Account, I.A.F. (CDA) 258, in respect of M.E.S. will be effected by the AO/AAO, GE
concerned. The total figures compiled during the year under this head will be furnished
annually by the AO/AAO, GE to the Accounts Section of the Principal
Controller’s/Controller’s Office for incorporation in the Review of Balances in the manner
prescribed in Para 179 of Defence Account Code.
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CHAPTER – 7
RIGHT TO INFORMATION ACT
(RTI Act)
About Right to Information
When does it come into force? It comes into force on the 12th October 2005 (120th day of
its enactment on 15th June, 2005). Some provisions have come into force with immediate
effect viz. obligations of public authorities [S.4 (1)], designation of Public Information Officers
and Assistant Public Information Officers [S.5 (1) and 5(2)], constitution of Central
Information Commission (S.12 and 13), constitution of State Information Commission (S.15
and 16), non-applicability of the Act to Intelligence and Security Organizations (S.24) and
power to make rules to carry out the provisions of the Act (S.27 and 28).
Who is covered? The Act extends to the whole of India except the State of Jammu and
Kashmir. [S. (12)]
What does information mean? Information means any material in any form including
records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders,
logbooks, contracts, reports, papers, samples, models, data material held in any electronic
form and information relating to any private body which can be accessed by a public
authority under any other law for the time being in force but does not include ‘file noting’.
[S.2 (f)]
What does Right to Information mean? It includes the right to
1. Inspect works, documents, and records.
2. Take notes, extracts or certified copies of documents or records.
3. Take certified samples of material obtain information in form of printouts, diskettes,
floppies, tapes, video cassettes or in any other electronic mode or through printouts.
[S.2 (j)]
Officers and their obligations
What are the obligations of public authority? It shall publish within one hundred and
twenty days of the enactment
1. The particulars of its organization, functions and duties;
2. The powers and duties of its officers and employees;
3. The procedure followed in its decision making process, including channels of
supervision and accountability;
4. The norms set by it for the discharge of its functions
5. The rules, regulations, instructions, manuals and records used by its employees for
discharging its functions;
6. A statement of the categories of the documents held by it or under its control;
7. The particulars of any arrangement that exists for consultation with, or representation
by the members of the public, in relation to the formulation of policy or
implementation thereof;
8. A statement of the boards, councils, committees and other bodies consisting of two
or more persons constituted by it. Additionally, information as to whether the
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meetings of these are open to the public, or the minutes of such meetings are
accessible to the public;
9. A directory of its officers and employees;
10. The monthly remuneration received by each of its officers and employees, including
the system of compensation as provided in its regulations;
11. The budget allocated to each of its agency, indicating the particulars of all plans,
proposed expenditures and reports on disbursements made;
12. The manner of execution of subsidy programmes, including the amounts allocated
and the details and beneficiaries of such programmes;
13. Particulars of recipients of concessions, permits or authorizations granted by it;
14. Details of the information available to, or held by it, reduced in an electronic form;
(i)
The particulars of facilities available to citizens for obtaining information,
including the working hours of a library or reading room, if maintained for
public use; the names, designations and other particulars of the Public
Information Officers.[S.4(1)(b)]
What does a "public authority" mean? It means any authority or body or institution of selfgovernment established or constituted: [S.2 (h)]
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By or under the Constitution;
By any other law made by Parliament;
By any other law made by State Legislature;
By notification issued or order made by the appropriate Government and
includes anyBody owned, controlled or substantially financed
Non-Government organization substantially financed directly or indirectly by
the appropriate Government.
Who are Public Information Officers (PIOs)? PIOs are officers designated by the public
authorities in all administrative units or offices under it to provide information to the citizens
requesting for information under the Act. Any officer, whose assistance has been sought by
the PIO for the proper discharge of his or her duties, shall render all assistance and for the
purpose of contraventions of the provisions of this Act, such other officer shall be treated as
a PIO.
What are the duties of a PIO?
 PIO shall deal with requests from persons seeking information and where the
request cannot be made in writing, to render reasonable assistance to the person to
reduce the same in writing.
 If the information requested for is held by or its subject matter is closely connected
with the function of another public authority, the PIO shall transfer, within 5 days, the
request to that other public authority and inform the applicant immediately.
 PIO may seek the assistance of any other officer for the proper discharge of his/her
duties.
 PIO, on receipt of a request, shall as expeditiously as possible, and in any case
within 30 days of the receipt of the request, either provide the information on
payment of such fee as may be prescribed or reject the request for any of the
reasons specified in S.8 or S.9.
 Where the information requested for concerns the life or liberty of a person, the same
shall be provided within forty-eight hours of the receipt of the request.
 If the PIO fails to give decision on the request within the period specified, he shall be
deemed to have refused the request.
 Where a request has been rejected, the PIO shall communicate to the requester - (i)
the reasons for such rejection, (ii) the period within which an appeal against such
rejection may be preferred, and (iii) the particulars of the Appellate Authority.
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PIO shall provide information in the form in which it is sought unless it would
disproportionately divert the resources of the Public Authority or would be detrimental
to the safety or preservation of the record in question.
If allowing partial access, the PIO shall give a notice to the applicant, informing:
That only part of the record requested, after severance of the record containing
information which is exempt from disclosure, is being provided;
The reasons for the decision, including any findings on any material question of fact,
referring to the material on which those findings were based;
The name and designation of the person giving the decision;
The details of the fees calculated by him or her and the amount of fee which the
applicant is required to deposit; and
His or her rights with respect to review of the decision regarding non-disclosure of
part of the information, the amount of fee charged or the form of access provided.
If information sought has been supplied by third party or is treated as confidential by
that third party, the PIO shall give a written notice to the third party within 5 days from
the receipt of the request and take its representation into consideration.
Third party must be given a chance to make a representation before the PIO within
10 days from the date of receipt of such notice.
What information is available?
What is not open to disclosure?
The following is exempt from disclosure [S.8)]
(i)
Information, disclosure of which would prejudicially affect the sovereignty and
integrity of India, the security, strategic, scientific or economic interests of the
State, relation with foreign State or lead to incitement of an offence
(ii)
Information which has been expressly forbidden to be published by any court
of law or tribunal or the disclosure of which may constitute contempt of court;
(iii)
Information, the disclosure of which would cause a breach of privilege of
Parliament or the State Legislature;
(iv)
Information including commercial confidence, trade secrets or intellectual
property, the disclosure of which would harm the competitive position of a
third party, unless the competent authority is satisfied that larger public
interest warrants the disclosure of such information;
(v)
Information available to a person in his fiduciary relationship, unless the
competent authority is satisfied that the larger public interest warrants the
disclosure of such information;
(vi)
Information received in confidence from foreign Government;
(vii)
Information, the disclosure of which would endanger the life or physical safety
of any person or identify the source of information or assistance given in
confidence for law enforcement or security purposes;
(viii) Information which would impede the process of investigation or apprehension
or prosecution of offenders;
(ix)
Cabinet papers including records of deliberations of the Council of Ministers,
Secretaries and other officers;
(x)
Information which relates to personal information the disclosure of which has
no relationship to any public activity or interest, or which would cause
unwarranted invasion of the privacy of the individual;
(xi)
Notwithstanding any of the exemptions listed above, a public authority may
allow access to information, if public interest in disclosure outweighs the harm
to the protected interests.
Is partial disclosure allowed? Only that part of the record, which does not contain any
information, which is exempt from disclosure and which can reasonably be severed from any
part that contains exempt information, may be provided. [S.10]
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Who is excluded? Central Intelligence and Security agencies specified in the Second
Schedule like IB, R&AW, Directorate of Revenue Intelligence, Central Economic Intelligence
Bureau, Directorate of Enforcement, Narcotics Control Bureau, Aviation Research Centre,
Special Frontier Force, BSF, CRPF, ITBP, CISF, NSG, Assam Rifles, Special Service
Bureau, Special Branch (CID), Andaman and Nicobar, The Crime Branch-CID-CB, Dadra
and Nagar Haveli and Special Branch, Lakshadweep Police. Agencies specified by the
State Governments through a Notification will also be excluded. The exclusion, however, is
not absolute and these organizations have an obligation to provide information pertaining to
allegations of corruption and human rights violations. Further, information relating to
allegations of human rights valuations could be given but only with the approval of the
Central or State Information Commission, as the case may be. [S.24)]
Procedure for Request of Information
What is the Application Procedure for requesting information?
1. Apply in writing or through electronic means in English or Hindi or in the official
language of the area, to the PIO, specifying the particulars of the information sought
for.
2. Reason for seeking information are not required to be given;
3. Pay fees as may be prescribed (if not belonging to the below poverty line category).
What is the time limit to get the information?
1. 30 days from the date of application
2. 48 hours for information concerning the life or liberty of a person
3. 5 days shall be added to the above response time, in case the application for
information is given to Assistant Public Information Officer.
4. If the interests of a third party are involved then time limit will be 40 days (maximum
period + time given to the party to make representation).
5. Failure to provide information within the specified period is a deemed refusal.
What is the fee?
1. Application fees to be prescribed which must be reasonable.
2. If further fees are required, then the same must be intimated in writing with
calculation details of how the figure was arrived at;
3. Applicant can seek review of the decision on fees charged by the PIO by applying to
the appropriate Appellate Authority;
4. No fees will be charged from people living below the poverty line
5. Applicant must be provided information free of cost if the PIO fails to comply with the
prescribed time limit.
What could be the ground for rejection?
1. If it is covered by exemption from disclosure. (S.8)
2. If it infringes copyright of any person other than the State. (S.9)
Information Commissions
How is Central Information Commission constituted?
1. Central Information Commission to be constituted by the Central Government
through a Gazette Notification.
2. Commission includes 1 Chief Information Commissioner (CIC) and not more than 10
Information Commissioners (IC) who will be appointed by the President of India.
3. Oath of Office will be administered by the President of India according to the form set
out in the First Schedule
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4. Commission shall have its Headquarters in Delhi. Other offices may be established
in other parts of the country with the approval of the Central Government.
5. Commission will exercise its powers without being subjected to directions by any
other authority. (S.12)
What is the eligibility criterion and what is the process of appointment of CIC/IC?
1. Candidates for CIC/IC must be persons of eminence in public life with wide
knowledge and experience in law, science and technology, social service,
management, journalism, mass media or administration and governance.
2. CIC/IC shall not be a Member of Parliament or Member of the Legislature of any
State or Union Territory. He shall not hold any other office of profit or connected with
any political party or carrying on any business or pursuing any profession. (S.12)
3. Appointment Committee includes Prime Minister (Chair), Leader of the Opposition in
the Lok Sabha and one Union Cabinet Minister to be nominated by the Prime
Minister.
What is the term of office and other service conditions of CIC?
1. CIC shall be appointed for a term of 5 years from date on which he enters upon his
office or till he attains the age of 65 years, whichever is earlier.
2. CIC is not eligible for reappointment.
3. Salary will be the same as that of the Chief Election Commissioner. This will not be
varied to the disadvantage of the CIC during service. (S.13)
What is the term of office and other service conditions of IC?
1. IC shall hold office for a term of five years from the date on which he enters upon his
office or till he attains the age of sixty-five years, whichever is earlier and shall not be
eligible for reappointment as IC.
2. Salary will be the same as that of the Election Commissioner. This will not be varied
to the disadvantage of the IC during service.
3. IC is eligible for appointment as CIC but will not hold office for more than a total of
five years including his/her term as IC. (S.13)
How is the State Information Commission constituted?
1. The State Information Commission will be constituted by the State Government
through a Gazette notification. It will have one State Chief Information Commissioner
(SCIC) and not more than 10 State Information Commissioners (SIC) to be
appointed by the Governor.
2. Oath of office will be administered by the Governor according to the form set out in
the First Schedule
3. The headquarters of the State Information Commission shall be at such place as the
State Government may specify. Other offices may be established in other parts of
the State with the approval of the State Government.
The Commission will exercise its powers without being subjected to any other authority
What is the eligibility criterion and what is the process of appointment of State Chief
Information Commissioner/State Information Commissioners?
The Chief Minister will head the Appointments Committee. Other members include the
Leader of the Opposition in the Legislative Assembly and one Cabinet Minister nominated
by the Chief Minister.
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The qualifications for appointment as SCIC/SIC shall be the same as that for Central
Commissioners.
The salary of the State Chief Information Commissioner will be the same as that of an
Election Commissioner. The salary of the State Information Commissioner will be the same
as that of the Chief Secretary of the State Government. (S.15)
What are the powers and functions of Information Commissions?
1.The Central Information Commission/State Information Commission has a duty to receive
complaints from any person a) Who has not been able to submit an information request because a PIO has not
been appointed;.
b) CIC/SCIC will have powers of Civil Court such as –
c) Who has been refused information that was requested;
d) Who has received no response to his/her information request within the specified
time limits;
e) Who thinks the fees charged are unreasonable;
f) Who thinks information given is incomplete or false or misleading; and
g) Any other matter relating to obtaining information under this law.
2.Power to order inquiry if there are reasonable grounds.
3.CIC/SCIC will have powers of Civil Court such as –
a) Summoning and enforcing attendance of persons, compelling them to give oral or
written evidence on oath and to produce documents or things
b) Receiving evidence on affidavit;
c) Requiring the discovery and inspection of documents
d) Requisitioning public records or copies from any court or office
e) Issuing summons for examination of witnesses or documents
f) Any other matter, which may be prescribed.
4.All records covered by this law (including those covered by exemptions) must be given to
CIC/SCIC during inquiry for examination.
5.Power to secure compliance of its decisions from the Public Authority includesa)
b)
c)
d)
Providing access to information in a particular form;
Directing the public authority to appoint a PIO/APIO where none exists;
Publishing information or categories of information;
Making necessary changes to the practices relating to management, maintenance
and destruction of records;
e) Enhancing training provision for officials on RTI
f) Seeking an annual report from the public authority on compliance with this law;
g) Seeking an annual report from the public authority on compliance with this law;
h) Require it to compensate for any loss or other detriment suffered by the applicant;
i) Impose penalties under this law; or
j) Reject the application. (S.18 and S.19)
What is the reporting procedure?
1. Central Information Commission will send an annual report to the Central
Government on the implementation of the provisions of this law at the end of the
year. The State Information Commission will send a report to the State Government.
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2. Each Ministry has a duty to compile reports from its Public Authorities and send them
to the Central Information Commission or State Information Commission, as the case
may be.
3. Each report will contain details of number of requests received by each Public
Authority, number of rejections and appeals, particulars of any disciplinary action
taken, amount of fees and charges collected etc.
4. Central Government will table the Central Information Commission report before
Parliament after the end of each year. The concerned State Government will table
the report of the State Information Commission before the Vidhan Sabha (and the
Vidhan Parishad wherever applicable). (S.25)
What is the role of Central/State Governments?
1. Develop educational programmes for the public especially disadvantaged
communities on RTI.
2. Encourage Public Authorities to participate in the development and organization of
such programmes.
3. Promote timely dissemination of accurate information to the public.
4. Train officers and develop training materials.
5. Compile and disseminate a User Guide for the public in the respective official
language.
Publish names, designation postal addresses and contact details of PIOs and other
information such as notices regarding fees to be paid, remedies available in law if request is
rejected etc. (S.26)
Who has the Rule making power?
Central Government, State Governments and the Competent Authority as defined in S.2 (e)
are vested with powers to make rules to carry out the provisions of the Right to Information
Act, 2005. (S.27 & S.28)
Who has the power to deal with the difficulties while implementing this act?
If any difficulty arises in giving effect to the provisions in the Act, the Central Government
may, by Order published in the Official Gazette, make provisions necessary/expedient
117
CHAPTER -8
AUDIT-GENERAL PRINCIPLES AND ROLE OF DAD
Accounts are “statements of facts relating to money or things having money
value’. The ‘facts’ that are incorporated in accounting records are described as
transactions.
Audit is an examination of accounting records undertaken with a view to
establishing whether they correctly and completely reflect the transactions to
which they purport to relate.
Auditing means:
Auditing refers to the process of exploring and verifying an Organizations
financial records and supporting documents.
The word auditing is derived from the Latin word audire which means “to
hear”.
Government Accounts:
The initial accounts of Government transactions in India are prepared by the
authorities through whom the transactions occur, such as treasuries, the
various departments, offices, pay and accounts organizations etc. From these
initial accounts the Indian Audit and Accounts Department as well as the
Central Accounting Organizations of Union Government compile, under
different heads prescribed for Government Accounts and bring out monthly
and annually the combined result of all the transactions which occur during
that period. From the accounts so compiled by the Indian Audit and Accounts
Department and other agencies, the combined Finance and Revenue Accounts
of the Union and the State Governments are prepared by the Controller and
Auditor General. These accounts incorporate the results of the total
Government transactions arising both in and outside India
Government accounts are designed to enable Government to determine how
little money it need to take out of the pockets of the tax payers in order to
maintain its necessary activities at the proper standard of efficiency. In order
to achieve this objective an agency independent of the agents or servants of
government who are entrusted with the realization and utilization of public
money or other assets is employed. This task is entrusted to the departments.
The Departments must ensure that the accounts maintained truly represent
facts: that the rules and orders framed by competent authority in regard to
financial matters have been obeyed, that the expenditure has been incurred
with due regularity and propriety and that there is no wasteful expenditure on
any scheme. The Finance division of the Ministry of Defence deals with all
Defence matters having a financial bearing. The head of this division is the
Secretary (Defence/Finance).
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The standards OF Financial Propriety enunciated in the Defence Audit Code are the basic
rules on which all audit is conducted as regards propriety of expenditure.
Standards of financial propriety: Every officer incurring or authorizing expenditure
from public moneys should be guided by high standards 14 of financial propriety. Every
officer should also enforce financial order and strict economy and see that all relevant
financial rules and regulations are observed, by his own office and by subordinate
disbursing officers. Among the principles on which emphasis is generally laid are the
following:(i)
Every officer is expected to exercise the same vigilance in respect of
expenditure incurred from public moneys as a person of ordinary
prudence would exercise in respect of expenditure of his own money.
(ii)
The expenditure should not be prima facie more than the occasion demands.
(iii)
No authority should exercise its powers of sanctioning expenditure to pass
an order which will be directly or indirectly to its own advantage.
(iv)
Expenditure from public moneys should not be incurred for the benefit of a
particular person or a section of the people, unless - (a) a claim for the
amount could be enforced in a Court of Law, or (b) the expenditure is in
pursuance of a recognized policy or custom.
(v)
The amount of allowances granted to meet expenditure of a particular type
should be so regulated that the allowances are not on the whole a source
of profit to the recipients.
Advantages of Audit
The following are some of the advantages accruing from audit.
1. Audited accounts are readily accepted as a correct and authentic record
of the transactions.
2. Errors and frauds are detected and rectified in time.
3. A regular audit would exercise a great moral influence on the executive
and thus prevent frauds and errors. At the same time the staff will also
keep the books of accounts up-to-date.
4. An auditor acts as a trustee and safe guards the interest of the public.
5. Comparison can be made between the accounts of the current year and
previous years. As an appraisal function, audit reviews the existence and
operations of various controls in the organization and points out the
weaknesses and inadequacies in them.
Audit as an aid to Government:
Audit is one of the instruments of financial control. It is, therefore, the duty of
the audit officer to provide Government with all possible assistance within the
sphere of his functions in financial matters. His normal attitude is the critical
one, but the duty of criticism must not be developed to exclude the
constructive faculty or constructive help. For example, when the Audit Officer
is to inspect an office, he should not only point out mistakes but also indicate
how they may be rectified and in future avoided. He should also suggest
improvements in the system. He must educate as well as investigate.
The scrutiny of departmental files, papers and documents enables audit to
know the background of the transactions and to have a better appreciation of
119
the situation for considering if any objections has to be raised thus audit helps
both audit and administration in the matter of raising and complementary to
each other. The aim and purpose of both are the same viz. to see that the
departments keep to the path of financial rectitude and consideration of
economy and financial propriety. It thus hardly needs any emphasis that the
relationship between Audit and Administration in the matter of obtaining
information, papers and other documents for the purpose of audit should be
cordial. It will greatly improve the relationship between Audit and the
Administration and tone up the functional efficiency of the administration if
audit objections are taken in the proper spirit and perspective and attended to
promptly.
Audit by Defence Accounts Department:
The Defence Accounts Department is entrusted with the prime function of
maintaining the accounts for the Ministry of Defence. The duties of the
department are mainly internal audit, payment and accounting of all charges
pertaining to the Armed Forces, including bills for supplies and services
rendered and for construction repair works, pay and allowances,
miscellaneous charges, pensions etc. The Department is also responsible for
the audit of cash and store accounts kept by the various units and formations
(including arsenals, workshops and storage depots) in the three services and
maintenance of pay accounts of Army Officers and combatants of the Army.
The manufacturing accounts of the Ordnance factories and the Naval Dockyard
and the stores accounts of the ordnance factories are also kept by the Defence
Accounts Department. The Department also maintains accounts relating to the
works services and the construction and the other accounts relating to works
project maintained by Military Engineer Services.
In the discharge of audit duties the clear distinction between Auditorial and
Administrative functions should always be borne in mind. It is a function of the
Government to make financial rules and orders for the Defence Services and
the Defence Accounts Department is responsible for making payments to
apply these rules and orders. It is the function of audit to verify that these
rules and orders are properly applied. It is not the function of audit to
prescribe what such rules and orders shall be or to interfere with their
administrative application.
In the course of scrutiny of accounts and transactions of the Defence Services,
audit is entitled to make relevant queries and observations and to call for such
vouchers, statements returns and explanation in relation to them as it may
consider necessary in the interest of proper discharge of its duties. All queries
and observations should be couched in language which is courteous and
impersonal.
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Audit by the Defence Accounts Department is conducted with reference to the
rules laid down in Audit code, Financial and other Regulations for the Defence
Services and other orders issued by Government and other competent
financial authorities from time to time.
Pre-audit
Examination of documentation prior to payment of an item is called Pre-audit.
The controller is responsible for conducting pre-audits. The Test Audit
conducts tests periodically to assure that appropriate pre-audit procedures are
beingfollowed
by
DAD.
Post Audit
Examination of a transaction after its occurrence.
A post-audit determines whether an organization followed the prescribed
policies and procedures. The test may be to verify if paid invoices have
necessary documentation and approvals. This test verifies internal control
procedures and work performed by clerks.
Types of Audit
In so far as the Defence Services receipts and expenditure is concerned the
audit conducted can be classified into three categories:
1)
2)
3)
Statutory Audit
Appropriation Audit and
Internal Audit.
Statutory Audit & Internal Audit:
Audit
Statutory Audit
Internal Audit
Conducted by DGADS
Exercised by DAD
On behalf of C&AG
On behalf of Secretary
Defence (Finance)
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Statutory Audit
 Compliance of the legal requirement.
 Auditors have to comment on the true and fair view of the
financial statements of the entity.
 Statutory auditor is basically responsible for reporting on
mistakes, errors which they find during the course of
audit.
Internal Audit
 Is an independent, objective assurance and consulting
activity designed to add value and improve an
organization's operations.
 It helps an organization accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of risk management, control, and
governance processes.
Internal Audit differs fundamentally from statutory audit. In Internal
Audit, the audit is conducted by an internal auditor or someone within
the organization. The audit conducted by the Defence Accounts
Department on the Defense Services Receipts and Expenditure is an
internal audit. The audit of all expenditure debitable to Defence Services
Estimates is conducted by the Controllers of Defence Accounts either
centrally in their own offices or locally through the agency of the Local
Audit Officers.
Primary Function of Audit:
Is to verify the accuracy and completeness of accounts to secure that
all receipts are brought to account under the proper head, that all
expenditure and disbursements are authorized, vouched and correctly
classified and that the final account represents a complete and true
statement of the financial transactions it purports to exhibit.
Audit by the DAD is conducted with reference to
- The rules laid down in Audit Code
- Financial and other Regulations for the Defence
Services
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- Other orders issued by Govt. and other CFAs from
time to time.
The standards of financial propriety enunciated in para 39 of this code are
the basic ruleson which all audit is conducted as regards propriety of
expenditure.
In the course of Audit, Audit is entitled to make relevant queries and
observations and to call for such vouchers, statements, returns and
explanation in relation to them as it may consider necessary in the interest
of proper discharge of its duties.
All queries and observations should be couched in language which is
courteous and impersonal.
Audit should not make independent enquiries from the personnel of the
Defence Services.
Such action would amount to an encroachment on the functions of the
administrative authorities
Audit should confine itself to calling upon the information/required
documents from the Administrative authorities.
Audit Responsibility of Controllers:
A CDA is responsiblethrough the CGDA to the Secretary (Defence/Finance)
and for the audit of the portion of the receipts and expenditure of Defence
Services that is entrusted to him.
Audit of accounts not falling within the sphere of duties of CDA:
Sanction of CGDA is required except the audit of Regimental Funds of units
and formations.
Communication of Sanctions and orders:
Sanctions and orders issued by GOI and various Defence Organizations with
the concurrence of the MOD (Finance)will be communicated - Direct to the
CDA.
Sanctions and orders issued by authorities lower than the GOI except those
issued by Chiefs of Services will also be communicated -Direct
to
the
CDAs.Sanctions and ordersissued by the MOD in their capacity as local
Government will be communicated direct to the CGDA by the MOD and will
be subjected to audit by Controllers.
Conveying Sanctions:
Copies of Government sanctions which are intended for communication to
the CDAs, who have to act upon the sanction, will be signed in ink by the
sanctioning authority.
Copies endorsed to other Controllers may bear cyclostyled signatures.
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Audit of GOI Sanctions
-
Conducted by the
Audit of Sanctions and Orders:
Director General of Audit (DS)
Scrutiny of all Codes, Regulations
and Standing Orders issued by
-
The GOI
Audit of sanctions issued by the
concerned
Authorities lower than the GOI
-
conducted by the CDAs
Classification of Sanctions and Orders:
The sanctions and orders affecting financial transactions may be
broadly divided into three classes:1)
Rules and general orders;
2)
Grants and appropriations; and
3)
Sanctions to expenditure.
Scrutiny of Rules and Orders:
All rules and orders should be scrutinized to see that
i)
They are consistent with the essential requirements of audit and
accounts.
ii)
They do not conflict with the orders of, or rules made by any
higher authority.
iii)
The issuing authority possesses the necessary rule making
power.
Disregard of Standards of financial propriety:
When the CDA considers that any rule or order has infringed any one of the
canons of financial propriety,
 He should convey his opinion to the administrative
authority concerned for necessary action or
 He may report to the next higher authority, if considered
necessary
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Utmost care and attention should be devoted to the audit of sanctions to
expenditure:
Utmost care and attention should be devoted to the work connected with
the audit of sanctions to expenditure, as once a sanction has been accepted
in audit, expenditure may have to be passed against it for a length of time.
Audit of Sanctions to Expenditure:
One of the important functions of audit in relation to the audit of
expenditure is to see that the
1)
2)
3)
4)
5)
6)
Item of expenditure is covered by the sanction of the
authority competent to sanction it.
The sanction is definite and needs no reference either to
the sanctioning authority or to any higher authority
Items are sanctioned in installments to avoid sanction by a
higher authority.
If any one item of a scheme requires the sanction of a
higher authority that item should not be given effect to
before sanction to it is obtained.
An order sanctioning expenditure contains indication of
the amount or limit of sanction.
Specimen signatures of the officers who are authorized to
sign the Government Sanctions involving Defence
expenditure tallies.
Audit against Propriety:
It is an essential function of audit to bring to light not only cases of clear
irregularity but also every matter which, in its judgment, appears to involve
improper expenditure or waste of public money or stores, even though the
accounts themselves may be in order and no obvious irregularity has
occurred.
It is thus not sufficient to see that sundry rules or orders of competent
authority have been observed.
It is of equal importance to see that the broad principles of orthodox finance
are borne in mind not only by disbursing officers but also by sanctioning
authorities.
Its objective is to support a reasonably high standard of public financial
morality, of sound financial administration and devotion to the financial
interests of Government.
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Audit Officers in the performance of their duties should in any case, apply
the following general principles which are recognized as Standards (or
Cannons) of Financial Propriety.
1.
2.
3.
4.
5.
6.
7.
Every Officer incurring or authorizing expenditure from
public moneys should be guided by high standards of
financial propriety.
Every officer is expected to exercise the same vigilance in
respect of expenditure incurred from public moneys as a
person of ordinary prudence would exercise in respect of
expenditure of his own money.
The expenditure should not be prima facie more than the
occasion demands.
No authority should exercise it powers of sanctioning
expenditure to pass an order which will be directly or
indirectly to its own advantage.
Expenditure from public moneys should not be incurred
for the benefit of a particular person or section of the
people, unless
i.
a claim for the amount could be enforced in a
Court of Law, or
ii.
The expenditure is in pursuance of a recognized
policy or custom.
The amount of allowances, granted to meet expenditure
of a particular type, should be so regulated that the
allowances are not on the whole a source of profit to the
recipients.
Whenever called for, the concerned authority must place
on record in precise terms the considerations which
weighed with it while taking the procurement decision.
Audit of Expenditure: Conducted by the CDAs
i)
ii)
Either centrally in their own offices or
Locally through the agency of LAOs.
Main Objects of Audit of Expenditure:
The main objects of audit of expenditure are to ensure:
i)
ii)
provision of funds duly authorized by the competent
authority
in accordance with the sanction properly accorded
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iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
incurred by an officer competent to incur
claims are made in accordance with rules and in proper
form
proper estimate framed and approved by competent
authority
expenditure sanctioned for a limited period is not
admitted in audit beyond that period without further
sanction
payment is made to the proper person
payment is acknowledged and recorded to avoid a second
claim
charge is correctly classified
recovery if any is watched
in case of stores, accounted for in the prescribed accounts
terms of the contract or other agreement have been
adhered to
Expenditure does not involve a breach of any of the
standards of financial propriety.
Prescribed checks should be observed in spirit
Auditors and others employed on audit duties should not be at liberty
to make any relaxations in audit of their own motion. Prescribed checks
should be observed in spirit and not in the letter as opposed to the spirit.
Irregular payments:
 Payments in contravention of definite Government Orders are
irregular.
 Concession should on no account be extended to other classes
merely on the basis of analogy or with a view to avoiding an
anomaly.
 Payments should not be made beyond the scope of the orders.
 If a reference is made to higher authorities for clarification, wait
for a decision
 No payments should be made in anticipation of a favorable
decision on the reference.
Audit of Bills and Vouchers:
i)
ii)
iii)
The detailed audit of bills and vouchers is conducted to see that:
The bills and vouchers are in the prescribed form and are in
original
They are duly receipted by payees
The details work up to the total and the totals are in words as
well as in figures
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iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
There are no erasures
The alterations are attested by the officer concerned
no voucher or order has been signed by the subordinate ‘for’ an
officer
the bills are signed in ink
no bill or voucher signed with a stamp
sanctions are certified by the sanctioning officer or by a gazetted
officer authorized to sign for him
that stamps are affixed to all vouchers for sums in excess of
Rs.5000/fund and IT deductions are correctly made
the claim is not time barred
completion of prescribed audit registers
Specimen signature
Before admitting a claim, an audit officer must satisfy himself that the
signature it bears is genuine. To ensure that specimen copy of the signatures
will be maintained.
Amendment and interpretation of rules:
When any defective rule comes to the notice of a Controller in the course of
his audit duties
 He will first see whether the rule requires any audit decision.
 Then decide the audit point according to the rule as it stands
 Refer the matter to the CGDA
Financial advice
Taking initiative by Controllers for reduction of Defence expenditure
whenever appears practicable.
Controllers act as an agents or representatives of the Secretary
(Defence/Finance) and render suitable Financial Advice to the Services
authorities on reduction of Defence Expenditure, whenever required and
appears practicable.
If a working of a rule or a system leads to abuse or extravagance, the
Controllers should report the matter to the CGDA, who will, if deemed fit,
bring the matter to the notice of Ministry of Defence (Finance).
Financial advice tendered to the Defence Services authorities can
be divided into two portions namely:
1)
Responding financial advice
2)
Original financial advice
Responding financial advice
 Advice on definite points referred to Controllers
128
 Advice as the result of investigations into facts which are
normally accepted on the statement of commanding and
administrative officers
Original financial advice
 Advising the administration of any method by which equal
efficiency can be obtained with less expenditure
Audit against provisions of Funds
Appropriation Act:
After the ‘Demands for Grants’ have been voted by the Parliament, a
bill is introduced to provide for the appropriation out of the Consolidated
Fund of India of all moneys required to meet those grants. No money can be
withdrawn from the Consolidated Fund until this bill is passed. The bill when
passed becomes the Appropriation Act.
Unspent balance lapses
Each grant authorized in the Appropriation Act is intended to cover all the
charges including the liabilities of past years to be paid during a financial
year or to be adjusted in the accounts of that year. It is operative until the
close of that year.
Any unspent balance at the end of the year lapses and is not available for
utilization in the following year.
No appropriation is needed in respect of recoveries of expenditure which are
treated as receipts, both initially and finally, and are not required by any rule
in any authorized account code to be taken in reduction of charges against
grants for expenditure.
Appropriation Audit
Means audit of orders of allotment of funds, re-appropriations and
expenditure against allotments.
The appropriation Audit is done both by the statutory audit (external audit)
and the internal audit. CDAs are required to exercise appropriation audit,
only in respect of the expenditure compliable to Locally Controlled Heads. No
audit is required to be conducted by the DAD on the expenditure pertaining
to CCH.
LCH: Locally Controlled Heads
CCH: Centrally Controlled Heads
Appropriation Audit is conducted in two stages:
i)
Sanction Audit: i.e. audit of orders of allotment of funds,
re-appropriations
129
ii)
Expenditure Audit: i.e. audit of expenditure against
allotments.
The audit of orders of allotment of funds, re-appropriations
consists in seeing:
a)
b)
c)
d)
That the order has not the effect of increasing the amount
of the appropriation at the disposal of the controlling
authority, without the sanction of the competent
authority:
That the amount appropriated is available under the unit
from which it is allotted;
That the order is issued by the competent authority and is
a legitimate charge against the allotment
That the re-appropriation has been authorized only within
the appropriation of that year.
In conducting the audit of expenditure against allotments, the
following points should be carefully observed by Controllers:
a)
b)
If any specific appropriation has been made for a
particular object of expenditure, all expenditure on
it will be audited against such appropriation
If a lump sum appropriation is made for a group of
items of expenditure, the total expenditure thereon
will be audited against the lump sum appropriation.
Audit of Receipts and Recoveries
The audit of receipts consists in seeing that
i)
ii)
iii)
iv)
v)
All sums due to Government are promptly credited and
brought to account.
No debt due to Government should be left outstanding
on the books without due and sufficient reason.
Whenever any item appear to be irrecoverable, orders
for its adjustment should be demanded.
Unless permitted by any rule in an authorized code, no
sums may be credited to Government by debit to any
suspense heads; credit must follow, and not precede,
actual realization.
If any scale or periodicity of recoveries prescribed, it will
be the duty of Audit to ensure that there is no deviation
without proper authority from such scale or periodicity.
130
A record of all sums due to Government will be maintained by means
of demand or other appropriate registers.
Unit Allowances
The claims for miscellaneous unit allowances and grants are
normally preferred by the OC Units/Formations (excepting Air
Force units / formations) and heads of establishments to the
CDA Concerned for pre-audit and payment.
The claims for miscellaneous unit allowances and grants in respect
of Air Force units/formations are paid out of units imprest
accounts and sent to CDA (AF) along with the monthly cash
accounts for post audit.
Claims on account of local purchase of stationery/rubber stamps
and local printing and those pertaining to the D.T.D&P (Air)
establishment, etc. are sent to CDA (AF) for pre-audit and
payment direct to the parties concerned.
Claims on account of condiment allowance paid out of Imprest and
post audited by the Controller concerned. The claims of
condiment allowance in respect of patients in hospital will,
however, be pre-audited.
The Annual Training Grant obtained on requisition or by allotment
and the Claims on account of that is post audited by the
Controller concerned.
Claims in respect of D.S.C.Platoons serving with Air Force units are
sent to the C.D.A. (AF) for pre-audit and authorization of
payment out of Units Imprest Accounts.
PAYMENT:
Ordinarily, payment of the above mentioned claims will be
made by cheque, but in the case of units, etc. serving in an operational areas
or stationed at places where banking facilities are not available, units may be
authorized payments from the Unit Imprest.
The authorized/audited bill in such cases should be
authenticated by the payment authority seal of the office of issue. The
vouchers, etc., in original in such cases will, on receipt with imprest
Accounts, be transmitted by the Pay Accounts Officers (Ors), to the CDA who
authorized the payment.
Audit of Contingent and Miscellaneous Charges
It is the duty of the executive authorities to see that
 The charges drawn in a contingent bill are of obvious necessity
and are at fair and reasonable rates
131
 Previous sanction for any item requiring such sanction is
attached
 All requisite vouchers are received and are in order
 The calculations are correct and that where applicable the
expenditure has not exceeded and not likely to be
exceeded the allotment made for the purpose.
 If expenditure be progressing too rapidly, it is their
responsibility to regulate and to take steps to obtain an
additional allotment.
It will be further seen in Audit that
 the charges are of a kind normally incurred on account of
office or other contingencies and that they are not of an
unusual or extraordinary nature
 The expenditure has been incurred with due economy;
that rates and prices are reasonable and are apparently
not extravagant and that the standards of financial
propriety as laid down in para 39 have been observed.
 the bill is in proper form and that any certificates required
under the financial rules have been furnished
 the vouchers for charges in excess of Rs.100 are furnished
 No charges for pay and allowances are included in the
contingent bills.
 The recurring charges have been sanctioned by the
competent financial authority.
 The expenditure is incurred by a Government servant
competent to incur it and that it has received such
sanction as is necessary
 Charges for non-official publications conform to para 604
Regulations for the Army, Vol.2
 Charges for railway time table and Indian Postal and
Telegraph Guides, may be admitted in audit.
 No charge is preferred for section writing, ie. For copying
manuscript by piece work without the previous sanction
of the authority which may sanction the employment of
an establishment; and that no such charge is passed to any
person in receipt of a salary from Government.
 Charges for liveries and warm clothing for identified Group
‘C’ and Group ‘D’ employees are claimed in accordance
with the conditions laid down in Appendix VI of the F.R.
Part I, Vol.II and other special Government letters issued
for the purpose.
132
 No charge is passed which contravenes the orders relating
to contingent and miscellaneous expenditure contained in
chapter 12, Financial Regulations Part I, Vol I, Pamphlet of
Recognized Claims and Appndx II of FR Part II.
 The expenditure in respect of charges, for which a
separate allotment has been sanctioned for the year, is a
proper charge against the allotment and that it is not
progressing at a rate likely to exhaust the allotment
before the end of the year. In the latter contingency the
officer submitting the claims will be warned to keep his
expenditure within the authorized limit and advised, if
necessary, to take steps to obtain an additional allotment.
 Charges for which scales have been laid down are passed
in accordance with those scales and that the charges for
which sanction of higher authority is necessary have been
so sanctioned.
 There is no tendency to incur expenditure simply because
funds are available, and that if the expenditure in the
month of March is unusually large it does not lead to
irregularities
 Legal charges are claimed in accordance with the
provisions contained in para 421, 536 and 537 of
Regulations for the Army Vol.i, 1987 Edition and other
Government letters issued for the purpose.
Fundamental principles for the guidance of authorities authorized
to enter into contracts or agreements involving Expenditure from
Public Funds
 The terms of a contract must be precise and definite, and
there must be no room for ambiguity or misconstruction
therein.
 As far as possible, legal and financial advice should be
taken in the drafting of contracts and before they are
finally entered into.
 Standard forms of contracts should be adopted wherever
possible, the terms to be subject to adequate prior
scrutiny.
 The terms of a contract once entered into should not be
materially varied without the previous consent of the
competent financial authority to enter into contract as so
varied.
 No contract involving an uncertain or indefinite liability or
any condition of an unusual character should be entered
133




into without the previous consent of the competent
financial authority.
Whenever practicable and advantageous, contracts should
be placed only after tenders have been openly invited,
and in cases where the lowest tender is not accepted,
reasons should be recorded.
In selecting the tender to be accepted, the financial status
of the individual and firms tendering must be taken into
consideration in addition to all other relevant factors.
Even in cases where a formal written contract is not made,
no order for supplies, etc. should be placed without at
least a written agreement as to price.
When a contract is likely to exceed for a period of more
than 5 years, it should, wherever feasible, include a
provision for an unconditional power of revocation or
cancellation by Government at any time, after the expiry
of six months’ notice to that effect.
Note 1: Sanction of the Government of India will be
necessary to conclude a contract for a period beyond 3 years.
For exception to this General Rule see Rule 246 FR Part I Vol.I
1983 edition.
Note 2: Long term contracts (Contracts for more than one
year) should also be to Director General of Audit Defence
Services.
Note 3: It may be ensured in audit that wherever prior
concurrence of respective Regional Controllers on the
spot/Min of Def (Fin) is required under the rules, should be
obtained before entering into contract.
 The Controllers of Defence Accounts have power to examine
contracts, and to bring to the notice of the proper authority
any cases where high tenders have been accepted, or where
other irregularities in procedure have come to light.
Hired Land Transport
When Government transport is not available to meet demands
or where Government transport cannot be used due to mileage or P.O.L.
restrictions Local Station/Formation Commander will place demands for
transport within the terms of the contract on the hired transport contractor.
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If no hired transport contract exists, Local Station/Formation Commander
will hire it locally with the prior sanction of the competent financial
authority.
Audit of Bills:
Types of bills:
1) Bills for carriage of stores
2) Bills for carriage of passengers
Bills should be preferred on IAFA-68 through Local Station /
Formation Commander concerned.
While auditing the bills of transport contractors for carriage of stores, it
should be seen that:
 The bills of contractors and agents have been prepared
and signed in ink by the person making the claim and
submitted in original; duly supported by the original
transport indents
 The various parts of the supporting indents have been
properly completed by the appropriate authorities
 The indents relating to services rendered under each
contract are numbered serially and separately (the serial
to run for the period of the currency of the contract)
 The bill is supported by a certificate as required under
rules and regulations
 The bill is a complete claim for all the services rendered
during the month to which it pertains and in case it is not
possible to include any indents pertaining to that period in
the bill, the number of such indents is noted on the bill
and brief reasons given for their exclusion
 The number and date of receipt and issue vouchers under
which the stores were received/dispatched have been
noted by the units/formation using hired transport, in Part
III of the transport indents
 Charges for the hire of transport are only claimed for the
transport actually supplied as indicated in Part III of the
indent by the indenting officer or his representative
 The charges claimed are in accordance with the rates and
conditions specified in the contract agreement on record.
While auditing the bills of transport contractors for carriage of passengers, it
should be seen that:
 The bills are supported by road warrants
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 The warrants have been issued by the competent
authority
 The individuals to whom warrants have been issued are
entitled to travel on them and the warrant have been
signed by the officers and other or by Officers-incharge of Parties, in token of the accommodation
having been provided
 The number of seats and the class of accommodation
asked for and provided by the contractor is separately
shown in the columns provided in the road warrants.
 The charges claimed are in accordance with the rates
and conditions specified in the contract agreement on
record.
In cases when transport is hired locally, the bills should be supported
by the sanction of the competent financial authority and the certificate of
Local Station/Formation Commander regarding the reasonableness of the
rates charged.
Before a contractor’s bill is passed for payment, all bills, transport
indents, road warrants, etc. supporting the bill will be verified with the
entries in the Income Tax register to ensure that a previous payment on the
same account has not been made.
Adjustment of Expenditure on Hired Land Transport:
The expenditure incurred on hired land transport will be adjusted
finally by the Controllers incurring the same, in their own compilations
against the appropriate service heads.
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CHAPTER - 9
FUNCTIONS OF DIFFERENT SECTIONS OF PCA (Fys), KOLKATA
SL.NO.
SECTION
1.
RECORD
2.
ADMINISTRATION
3.
ACCOUNTS
4.
DISBURSEMENT
5.
PAY,PAY-O& PAY-TECH
6.
STORE
7.
TRANSPORTATION
8.
PRODUCTION
9.
ANNUAL ACCOUNTS
10.
FINANCIAL ADVICE
11.
FUND
12.
ELECTRONIC DATA PROCESSING
13.
NPS
14.
MISCELLANEOUS
15.
MEDICAL NON DAD
16.
RAILWAY
The role & function of different sections mentioned above is similar to the function of any
CDA/PCDA office. The functioning of the section that is different in a factory organisation is
discussed below.
PRODUCTION SECTION:
Production section, as its name implies, is primarily concerned with the production activities
in the Ordnance and Ordnance Equipment Factories. It sponsors all principles relating to
cost accounts, watches their efficiency through various reports and returns furnished by the
Branch Accounts Offices and submits reports to the Financial and Administrative authorities
as and when required.
This Section also deals with all problems arising out of the practical application of the
provisions of the Workmen’s Compensation Act and fixation of piece work rate and scrutiny
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of piece work profit/losses. The important items of work that are dealt with in PR Section
have been detailed in the succeeding paragraphs.
Procedure
In formulation of Cost Accounting procedure, great care should be exercised to ensure that
the system conforms to the general organization of the ordnance and Clothing Factories,
taking into consideration the technical aspects thereof. It should also be seen that the
procedure conforms to the following main objectives of cost accounting enumerated below(i) To find the cost of production of each article manufactured in the factory with
ascertainment of cost and to exhibit its cost at every stage of manufacture;
(ii) to ensure achievement of minimum cost of production without comprising to the quality
and specification by systematic reduction of waste in material, time and sundry stores, by
eliminating bottlenecks of production, by bringing eliminating un-remunerative expenses, by
reduction of general overhead expenses, by developing a better organization, and by
economies in design, methods and equipments;
(iii) To frame fairly correct standard estimates of what the cost of production should be with
reference to records of the past actuals with modifications necessary for changed
circumstances.
The attainment of above objective is largely dependent on the adequate method of
presentation of the cost results with promptitude, frequency and regularity, so that the
executive authority can take timely suitable remedial measures to prevent losses and
wastes and plan for maximum efficiency consistent with economy.
For this purpose, the cost results must be accurate; otherwise the value will be doubtful.
Naturally, the results must be sufficiently detailed, but over elaboration should be avoided as
it will be costly and incommensurate with the results obtained. In order, therefore, to obtain
detailed information without incurring great expenses, the costing procedure formulated
should be abbreviated and any duplication of work eliminated. Further, it should be ensured
that uniformity of procedure followed in the different Branch Accounts Offices is maintained
to the greatest possible extent.
The main purpose of the quarterly report on the audit of cost system carried out by the
Branch Accounts Offices is to see that it is operating fully and effectively in accordance with
the instructions issued from time to time on the subject. This should be carefully examined
with a view to considering any possible improvement in the procedure.
Instructions for maintenance of principal ledger in Accounts Office
The opening of any new ledger account or discontinuance of any existing ledger account will
be decided by this Section. All instructions in respect of journal entries to be operated for the
accounting of any transaction in principal ledger will also be issued by PR Section.
Maintenance of Syllabus of Work Orders, Part I
The syllabus of work orders, Part I is maintained in PR Section. Any addition, alteration or
amendments as and when required are carried out and the Branch Accounts Offices
informed accordingly. Reprinting of syllabus of work orders, Part I is also arranged, when
necessary.
Maintenance of Factory Accounting Rules and Office Manual Part VI
The section is responsible for incorporation of all amendments to Factory Accounting Rules
and Office Manual, Part-VI. Sections in which the proposals for amendments originate
should in the first instance prepare a draft amendment and submit the same to the
administrative authorities or to the CGDA, as the case may be, for concurrence. The draft
amendment should, after final concurrence by all concerned, be passed on to the PR
Section is quoting the number and date of the reference conveying the concurrence of the
administrative authorities or the CGDA as the case may be. The Section should see that the
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number and date of communication conveying the concurrence and the relevant case file
number of the office of the Principal C of A (Fys) are quoted on each correction slip for
facility of reference.
The revision and reprinting of Factory Accounting Rules and office Manual Part VI, when
considered necessary, will also be arranged by this Section with due concurrence of the
authorities concerned.
The maintenance of Factory Accounting Rules and Office Manual part VI with up to date
corrections is essentially required for day to day reference purposes as well as to minimize
the work involved in the revision of these books. Care should, therefore, be taken by all
concerned to initiate action for any amendment as soon as the necessity therefore arises.
Instructions for accounting of Capital Assets
All instructions in connection with the accounting of Capital Assets and working out the rates
of depreciation to be charged thereon should be issued by reference to Administrative
authorities, where necessary. Any question involving audit decision should, however, be
dealt with in consultation with the Store Audit Section.All questions relating to minor
maintenance woks of buildings, etc. will also be dealt with in PR Section.
Control of Indirect Expenditure
Indirect expenditure incurred in the factories are controlled by the Branch Accounts Offices
with reference to the instructions on the subject issued from time to time. In order to
examine the practical side of this item of work, certain reports and returns on indirect
expenditure are received from the Branch Accounts Offices. These statements are
scrutinized thoroughly and compared with the statements of the previous periods and the
reasons for variations obtained from the Accounts Officers. Further, it is watched through the
medium of the statements whether the pre-determined rates of variable expenditure worked
out are justified with reference to the actual expenditure, if not, necessary instructions are
issued for regulating under/over absorption to production.
Payment Services
All instructions relating to payment services to the entitled personnel of the factories and
technical development establishments and payment issues to other Government
departments (both Central &State), semi-Government departments, Public bodies such as
Municipalities, local Boards, educational and research institutions etc. and commercial firms
and private bodies will be issued by this section.
Rejections and Wastes of Manufacture
Instructions as to how rejections in manufacture should be dealt with will also be issued by
this section. Audit report on loss statement (Rejection loss) falling under the powers of
OFB/Govt. of India should be rendered by this Section.
Monitoring of Projects
Projects undertaken in Ordnance Factory Board Organization are recorded in the
Register of Project sanctions maintained, separately for OFB and R & D. The detailed work
done in respect of OFB projects are enumerated below:(i) On receipt of sanction of a new project, (both R & D and OFB), the same will be entered
in the sanction Register and copies thereof sent to the concerned Branch AO/AOs and to
Store, Pay-Tech Section in Main Office, if necessary;
(ii) Intimate Accounts Section to open unit code (in respect of independent Factory Project)
or an unit Control code (in respect of projects ancillary to any factory) as the case may be. A
separate register is maintained for the code numbers.
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(iii) Progress of expenditure against all OFB projects is watched through MER (Monthly and
posted in the MER Register maintained for the purpose;
(iv) Watch completion of the projects in consultation with the Half Yearly Progress Report
published by Project (C) Section of OFB.
Miscellaneous Items of Work
In addition to the above the following miscellaneous items of work are also dealt with
in PR section:a) Scrutiny of Monthly Status of work report is decided to be done by Group Controller/Joint
Controllers as the case may be. Any major deviation should be reported to Main Office for
remedial measure.
b) All questions relating to payment of compensation under workmen’s Compensation Act.
c) All questions relating to fixation of piece work rates and scrutiny of percentage of the
piece work profits for revision of the piece work rates yielding abnormal high profits and
losses.
d) Scrutiny of concurrent review report.
e)Analysis of outstanding warrants reports.
f) Analysis of uninstalled P&M report.
g)Reconciliation of CCO2 in r/o Payment Issues and IFD issues.
h)Analysis of dues-in report
i) Approval and monitoring of items accounted in Annual Accounts as KOP.
j) Issue of PSA codes (Receipt & Issue) to factories.
k) Other Miscellaneous items of work not mentioned above.
ANNUAL ACCOUNTS SECTION:
The work of the Annual Accounts Section in Main Office consists of scrutiny, compilation
and publication of Annual Accounts of the Ordnance and Ordnance Equipment Factories in
accordance with the accounting procedure in vogue in the factories, Salient features of the
work are as under :i) Consolidation and submission of the Store Accounts, Production Accounts and other
Accounts and Statements to the O.F. Board after carrying out necessary audit and check
and consolidation of the same.
ii) Preparation of Annual Accounts in Commercial format.
iii) Audit and scrutiny of the Annual Statement of Principal Items of work done in the
factories and consolidation of the same.
iv) Printing and publication of the Annual Accounts with subsidiary statements and
statement of principal items, as required by the O.F. Board.
v) Issue of printed Book of Annual Accounts and Principal Items of work done in the
factories to the O.F. Board, CGDA and other concerned Financial and administrative
authorities.
vi) Furnishing production costs of specific articles when required by the Administrative and
Financial authorities of Headquarters.
vii) Dealing with Test Audit objections on the Consolidated Annual Accounts of the Factories
raised by the local Test Audit Party under Principal Director of Audit and its subordinate
officers.
viii) Scrutiny, analysis and consolidation of Quarterly Financial Review (QFR) and
submission of the same to the respective competent authority.
Details of Accounts and Statements
Various Accounts and Statements rendered by the Branch Accounts Officers in connection
with the Annual Accounts are as under:
(a) Consolidated Store Accounts
These are prepared in the form in which they are published in the printed Annual Accounts
of Ordnance and Equipment factories in India. The Accounts comprise of the following:(i) Consolidated Store Account.
(ii) Consolidated price Store Accounts [in forms IAF (Fys) 15 and 16].
140
(iii) Statement showing increase/decrease in stock balance as on 31st March of the year
together with detailed reasons for such increase/decrease.
(iv) Statement showing analysis of stock balance, category-wise.
(v) Statement showing details of the other adjustment (Debit item 10 and credit item 9 of
Store Account).
(vi)Statement showing details of the Miscellaneous Receipts and Issues from Stock (Debit
item 11 and Credit item 7 of Store Account).
(vii) Balance Sheet of payment issue from stock.
(viii) Statement of surplus, obsolete and waste stores and scrap disposed of during the year.
(ix) Statement indicating reasons for criterion in respects of all debit and credit items of Store
Accounts where the difference, as compared to the previous year, is 5% and above.
(x) Statement of losses showing (a) losses (including book losses) incurred, (b) loss written
off by theC.F.A. (c) real losses incurred.
(xi) Statement showing details of losses under the following heads:
(a) Capital, (b) Inventory, (c) Medical and (d) Manufacturing loss.
(xii) Statement showing Indenter wise issue of credit item 6 (By issues on payment).
(b) Consolidated Production Accounts
These are prepared in the form in which they are published in the printed Annual Accounts
of Ordnance and Equipment Factories in India. The Accounts comprise of the following Main
Accounts and Statements:1. Production Accounts.
2. Finished Stock Account
3. Capital Account.
4. Statement of Assets and Liabilities as on 31st March.
Subsidiary Statements of the above Main Accounts are:1. Production Account
1.1 Details of miscellaneous charges showing work orders and descriptions.
1.2 Details of miscellaneous credits showing work orders and descriptions.
1.3 Details of contingent charges showing work orders and descriptions.
1.4 Details of miscellaneous adjustments.
1.5 Details of Expenditure kept out of Production.
1.6 Statement indicating reasons for variation in respect of all Debit and Credit items of
Production Account where the difference, as compared to previous year, is 5% and above.
2. Finished Stock Account
2.1 Statement indicating reasons for variation in respect of all debit and credit items of
finished stock account where the difference, as compared to the previous year, is 5% and
above.
2.2 Statement showing the figures of export earnings.
2.3. Balance sheet of payment issue from production.
2.4. Statement showing value of services rendered on payment and payment and payment
issues of CivilGovt. Departments, Foreign Governments, Public undertakings and private
civil indenters.
2.5 Statement showing cost of production of articles or components completed during the
year, value of completed articles or components on hand at the beginning and at the end of
the year. This should also show the cost of issues, value of issues and profit or loss.
3. Capital Accounts
3.1 Statement indicating reasons for variation in respect of all debit and credit items of
capital account where the difference, as compared to previous year, is 5% and above.
3.2 Statement showing detailed capital assets under different categories.
3.3. Statement showing reconciliation of depreciation charges on Buildings and other items
credited to Capital Account and debited to Production Account.
3.4. Statement showing the value of Capital Assets discarded and disposed of from N.C.
Grants and Projects.
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3.5. Statement in respect of stock pile items showing opening balances, receipts & issues
and closing balances.
4. Statement of Assets and Liabilities as on 31st March
4.1. Statement indicating reasons for variation of all Assets and Liabilities where the
difference, as compared to previous year, is 5% and above.
4.2. Statement showing reconciliation of figures of stores-in-transit between factories with
year wise breakup.
The following accounts and statements are also prepared by the Branch Accounts Offices
and submitted to Main Office, Annual Accounts Section in connection with the Annual
Accounts of the factories :(i)(a) Indirect Expenditure statement for both fixed and variable charges.
(b) Subsidiary statement showing reasons for variations in respect of amounts booked to
different work orders where the difference, as compared to the previous year, is more than
10%.
(ii) (a) Summary of Cost of out-turn other than Inter-Departmental Production-Statement 10
(a).
(b) Summary of Cost of Inter-Departmental Production (capital and stock)-Statement 10 (b).
(c) Statement showing reconciliation of figures exhibited in the statements 10 (a) and 10 (b)
with that exhibited in the Production Account.
(iii) Consolidated Manufacturing Account Statement ‘A’.
(iv) Consolidated Manufacturing Account Statement ‘B’.
Principal Items
A statement showing principal items of work done by the Factories during the year is
prepared annually by the Branch Accounts offices indicating the previous year’s actual
figures and estimated figures in respect of each item and submitted to the Main Office,
Annual Accounts Section of check, consolidation and publication.
From the above statement, a comparative statement showing the unit cost of production of
an article manufactured in more than one factory is prepared by the Annual Accounts
Section for exhibition in the Printed Book of Annual Accounts of the factories.
A half-yearly statement of important output of production is also prepared by Branch
Accounts Offices and submitted to the Annual Accounts Section for necessary audit.
Commercial Accounts (in 2 volumes, Vol. I for OFB as a whole and Vol. II for
individual 41 Factories)
With the separation of OFB Budget from Army Budget from 01.04.1987 and consequent
focus on budgetary accountability, the accounting requirement for the Organization has
changed. Accordingly OFB has been considering the need to introduce Commercial
Accounting in Ordnance Factories. Further, Rule 84 to 87 of GFR 2005 provides that Govt.
Department working on a commercial or quasi-commercial basis should maintain Proforma
accounts in commercial form i.e. Manufacturing, Profit & Loss A/c and Balance Sheet. In a
meeting chaired by Hon’ble RURM on 07.08.2007, it was decided that Accounts of OFB
Organization are to be prepared in Commercial Format.
A committee was constituted by MOD under the chairmanship of JS (OF), Advisor (Cost),
Director Finance BEL among other members for adopting Financial Accounting System in
Ordnance Factories. Committee submitted its report in December 2006.
Based on the JS (OF) Committee report, Accounts of Ordnance Factories Organization are
now being prepared in Commercial Format in addition to accounts in Traditional Format
every year. There are three main formats supported by 27 schedules in this system.
1. Proforma Manufacturing Account: 142
This account shows the expenditure under the head Value of material consumed, Cost of
Human resources, OFB HQ Expenses for Direction & Administration, Accounts & Audit
Department Expenses, Depreciation, Other operating expenses. Cost of Production is
worked out after deduction of Value of work on Capital & Own Stock, Recoveries & Misc.
credit from total expenditure. The major highlight of this account is Cost of Production.
2. Proforma Profit & Loss Account: This account shows the Income under the Sub-head Issues/Sales toIndenters, Accretion (+)/
Decretion (-) to Finished Article & Components. Operating Surplus/Deficit is worked out after
deduction of cost of production (as per Proforma Manufacturing Account) from income. Total
Surplus/Deficit is worked out by adding Non-Operating Income and deducting NonOperating expenses and losses including cost of abnormal rejection with the amount of
Operating Surplus/Deficit.
3. Proforma Balance Sheet: The Balance Sheet shows the source of fund. Fund Outlay of the entity hasbeen structured
in the following manner:Capital Outlay Account: - Represents the amount equivalent to the Net Block plus dues in
as Work-in-Progress in respect of Capital Asset items plus closing value of Stockpile items.
For the entity, this represents the (Govt’s) equity.
Revenue Outlay Account: - Represents the Net Current Assets and the unabsorbed
balance of Preliminary and Deferred Revenue Expenses after adjusting the amount of
reserve and profit/loss for the year.
Reserves: - Reflects the balance of Revaluation Reserve Account. In the OFB Accounts
balance retained in RR Fund is also included.
Profit & Loss: - Amount of Surplus/Deficit as worked out through Proforma Profit & Loss
Account is exhibited. Balance Sheet also shows application of fund under Fixed Assets and
Current Assets. Net Current Assets is worked out by deducting Current Liabilities from total
of Current Assets. Misc. Expenditure and unabsorbed Preliminary Expenses are also shown
under application of fund.
Miscellaneous Items of Work
Annual Accounts Section carry out necessary audit and check of the monthly Priced Store
Accounts and monthly Manufacturing Account Statements A& B, submitted by the Branch
Accounts Offices.
The following items of work are also dealt with in the Section with a view to allocation of
certain elements of costs of general nature to the production accounts of the factories:(i) Expenditure on the O.F. Board HQrs. is classified as (a) effective (representing pay and
allowances and other miscellaneous expenditure) and (a) non-effective (superannuation
charges and NPS). The total amount (a) and (b) is then distributed over all the factories on
the basis of direct labor incurred by each factory and the figures intimated to the Account
office for adjustments.
(ii) Expenditure on the Principal C of A (Fys), Main Office excluding that of the Railway
Section less12.5% to cover expenditure incurred for audit and accounts work for the R & D
organization is apportioned first between (i) Accounts and (ii) Internal Check (44% & 56%
respectively). The costs of EDP Section is then added with the accounts cost. The total
amount of both (i) Accounts and (ii) Internal check is then distributed to all the factories on
the basis of pay & allowances of the Branch Accounts Offices and intimated to the Accounts
Offices for adjustment in the Accounts.
(iii) Expenditure incurred on training scheme for other than IEs by the concerned factories
are apportioned to the different factories annually by applying the percentages intimated by
the Annual Accounts Section, which are worked out on the basis of the direct labour of the
factories.
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All instructions regarding adjustment of various elements of costs in the Accounts,
preparation and submission of Annual Accounts and Review Chapter thereon are issued to
Branch Accounts Offices by the Section.
Scrutiny of Quarterly Cost and Financial Review Report received from Branch Accounts
Offices. Also a monthly report showing different elements pertaining to wages which was
earlier part of QFR was discontinued from the QFR and submitted monthly to Finance
Division based on the reports received from Branch AOs.
Review Chapter on Annual Accounts
The Review is in two parts. Part I contains an Executive Summary of Annual Accounts both
in Traditional and Commercial Format as well as an analyses of salient features/trends
emerging from the Accounts. The Part – II contains detailed analysis based on Traditional
Accounts, which has been divided into nine segments viz. (1) Production, (2)
Material/Inventory, (3) Labour/Manpower, (4) Overhead, (5) Issues/Surplus-deficit, (6)
Budget, (7) Plant & Machinery, (8) Principal Items, (9) Project Appraisal.
Quarterly Financial Review Report
A management information report compiled by Branch AOs and scrutinized, analyzed,
consolidated bythis section is submitted to OFB and CGDA for appraisal. QFR is prepared in
12 tabular formats shown asAnnexure–XXXVI to this chapter. Based on standard costing
reflects major Cost & Financial activities and costcomparison done with estimates. The
report is prepared showing the quarterly value of the following majorinputs:
(a) Comparison of Issue value and CCO2
(b) Cost of Production
(c) Revenue Expenditure
(d) Piece work profit
(e) Overhead information (incurred and levied)
(f) Inventory status
(g) Finished goods/components
(h) Asset & Liabilities (Stores & Machineries)
(i) Store-in-transit
(J) Uninstalled P & M
FUND SECTION:
This section maintains the General Provident Fund accounts in respect of:A. Gazetted Officers of all Ord&Ord Equipment Factories and its Allied Estts and OFB HQr,
SQAE Hasting(Armaments) Kolkata, OF Cell New Delhi and Regional Marketing Centre,
New Delhi.
B. NIEs and NGOs of OFB HQr, OF Cell New Delhi and Regional Marketing Centre, New
Delhi (As all the employees of Ordnance Factory Organization who joined service prior to 14-04 opted for General Provident Fund, Contributory Provident Fund has become non
effective in the organization.)
Maintenance of Fund accounts of IEs, NIEs and NGOs of all Ord&Ord Equipment Factories
and itsallied Establishments rest with the concerned Br AOs. Advances and withdrawals
from G. P. Fund account in respect of the officers of the Ord&Ord Equipment Fys and its
Allied Establishments are dealt with by the concerned Br AOs except for those who are
going to retire within a period of two years and advance and withdrawal in respect of those
officers are dealt with by this section. Besides, the section also admits the
advance/withdrawal bills in respect of staffs of OFB Hqrs. This section also deals with Final
settlement of Fund Assets of all GOs of Ordnance Factories and allied establishments, GOs
and staff of Ordnance Factory Board and other establishment as mentioned in Para 1046.
144
This section also deals with transfers of the fund assets when the concerned
subscriber gets transferred to (1) Other Govt. Departments/Public undertakings/Autonomous
bodies (2) units which fall under audit and accounting control of other CDAs/PCDAs.
The procedure of work followed in this section commensurate with the procedure as
laid down in OMPart V. Maintenance of Fund accounts by this section are ensured through
the following stages:(a) Allotment of G P Fund account nos.
(b) Obtaining of Nomination Forms
(c) Receiving GPF credit and debit schedules and its posting
(d) Issue of CCO-9 (Annual GP Fund Statement)
ELECTRONIC DATA PROCESSING SECTION:
Duties of EDP Section of Main Office
As per present scenario every branch Account Office is having EDP section which is linked
up with EDP section located in the Main Office, Kolkata. Work in EDP Section of Main Office
broadly falls under the following categories:
A. Financial and non-financial compilation in respect of PCA (Fys) Organization.
B. Office Automation & Development and maintenance of software packages; maintenance
of website.
C. Other functions such as monitoring of IT Budget, procurement of computer hardware and
consumables, maintenance of systems, NEFT payment etc.
These are discussed in detail below:
1. Punching and Verification of Data:
The data are punched by the DEOs with reference to punching media. After the data are
punched and copied to a file, the punching media batches are initialed by the concerned
DEOs. The data of Punching Medium are extracted from office automation packages
instead of punching. The sections where office automation package is not implemented the
PM data is punched which is passed on to the programmer, who runs a program to print a
checklist of the PM data for the purpose of agreement. The DEOs check the PM checklist
with reference to the original punching media data. During the course of checking, any
errors such as mismatch between the totals of Receipt and Charges side of PM, omission of
PM etc. are rectified. The file is rendered error-free by the programmer thereafter.
2. Batch Totaling:
Section-wise list of batches indicating batch no. and amount of each batch is printed from
the error free punching media for ensuring that all the batches have been taken into account
correctly. The list is then checked with reference to the entries in the punching media
register in which all the batches are entered to confirm that no batch is missing /duplicated.
The generated amount is also tallied with the manual total written on the top list of each
batch. A list of fictitious code head is generated taking convenient number of batches in a
group. The fictitious codes are rectified to the maximum extent possible. Similar action is
taken for invalid Unit Control Code (UCC).
Data received from Branch Accounts Offices
PM data in respect of BAOs are received through e-mail/WAN on daily, weekly basis as well
as monthlybasis. As in the case of data received from sections of MO, the details are noted
in a PM register kept separatelyfor BAOs. The data received from BAOs are processed to
check whether the totals of receipt and charge side ofeach PM agree. Batch total, fictitious
code-heads, invalid unit control codes, break up figure of punching mediaand total no. of
vouchers are recorded in each batch. Thereafter, any discrepancy found during
theprocessing of PM data is taken up with the concerned BAO for settlement through email/post.In case of non-receipt of weekly data within the scheduled time from BAOs, the
same is communicated to theconcerned office through e-mail/telephone. Utmost care is
taken up to keep the backlog vouchers at aminimum.IFD compilation is prepared on monthly
basis. Issues Statement, Receipt Statement and detailed IFDCompilation are prepared and
forwarded to all the BAOs for reconciliation.
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Closing of the Punching Media Register:
After the batch totals are agreed, the punching media registration DEO checks the punching
medianumbers under each section in the register with the Monthly Vouchers Certificate
received from the concernedsection/office.All the discrepancies found therein are settled in
communication with the parties concerned.Finally, the weekly and monthly code-wise
compilation in respect of Main Office and BAOs is clubbed togetherand forwarded to
Headquarters Office through e-mail. A list of the reports/documents generated thereafter
forAccounts Section and other sections of Main Office as well as Branch Accounts Offices is
shown in Annexure‘XXXIX’. A flow chart showing the sequence of the processes followed in
the section is shown in Annexure ‘XL’.
Note: Consequent on establishment of EDP Section in all Branch Accounts Offices
the works related togeneration of different abstracts and cost statements as detailed
in Para 1060 to 1073 of OM Part VI Vol III of1993 edn.are being done in the respective
EDP sections of Branch AOs.
Office Automation & Website Maintenance
Keeping in pace with the Government policy of 'e' governance, Main Office has successfully
automated hitherto manual functions in certain sections, including those where bills are
passed regularly, using WAMP platform (i.e. based on a combination of
PHP/HTML/JavaScript and My SQL database with Windows 2003Server support). A brief
summary of sections/work brought within the ambit of automation is as under:
I. Dak Entry Module:
(a) Records Section for data entry of basic details of Medical and TA/DA bills received
(b) AN III Section
II. Bill Passing Modules:
(1) TA/DA/LTC:
(a) DAD officers and staff (dealt with by AN VIII Section)
(b) Non-DAD officers and staff (dealt with by “T” Section)
(2) Medical Bills:
(a) DAD officers and staff (dealt with by AN Med Section)
(b) Non-DAD officers and staff (dealt with by MND Section)
(3) GP Fund – Non-DAD
For final settlement of GPF in addition to bill passing
(4) Third Party Bills:
Miscellaneous Section
AN-VI Section
Stores Section - to be implemented
III. Pay bill:
DAD – Implemented in AN Pay Section
All bills are subject to audit as they pass from Auditor/SA to AAO and then onto SAO/AO for
finalpassage. Security is ensured through password-based access to the system for
authorized users.
Website
For the purpose of convenience and clarity, the website has been divided into two
segments, static anddynamic. The static portion contains, inter alia, information relating to
the history, organizational setup, mission and quality policy of the DAD and PCA(Fys)
organization. Important orders and circulars as well astelephone directories have also been
uploaded to the website. These are updated on a regular basis to ensure that current
information is available to the user. The dynamic section of the website has been created
with the objective of dissemination of information to members of both establishments, i.e.
the DAD and OFB HQrs/Ordnance Factories, to enable them to view the status of claims
and grievances submitted by them. Third parties have also been provided the facility of
viewing the status of payments due to them.
146
Other important functions entrusted to EDP Section of Main Office are discussed in
detail below:
(i) Preparation of Annual Budget for EDP in Factory Organization. Projection of the same to
Headquarters Office and allotment of funds to different Group controllers. Watching the
progress of expenditure against allotment.
(ii) Projection of requirement of computer hardware in respect of PCA (Fys) Organization to
Headquarters Office for the purpose of procurement of new hardware and replacement
hardware against obsolete and condemned hardware.
(iii) Procurement of computer hardware/software in respect of Main Office and distribution of
the same in the sections. Condemnation proceedings for old and obsolete hardware in Main
Office in accordance with HQrs. Office guidelines on the subject.
(iv) Maintenance of systems, PCs and peripherals, in all sections of M.O.
(v) Physical verification of stock of computers and peripherals installed in Main Office on an
annual basis.
(vi) Maintenance of LAN/WAN/Broadband installed in the sections of M.O.
(vii) Procurement of computer stationery and consumables for Main Office, including preprinted computer stationery for playbill, CCO-9, etc., and distribution of the same in the
sections of M.O.
(viii) Development and maintenance of software for automated sections. Implementation of
packages and monitoring thereof.
(ix) Maintenance of PCA (Fys) website.
(x) Maintenance of database of EDP trained personnel; processing of claims for EDP
Special Allowance in respect of PCA (Fys) Organization for recommendation to HQrs.
Office.
(xi) Payment through NEFT.
(xii) E-payment and e-procurement related correspondence.
(xiii) Miscellaneous jobs such as printing of CCO-9 generated by Fund Section of M.O.,
printing paybillsand pay slips in respect of all employees of Main Office.
NATIONAL PENSION SYSTEM:
The National Pension System or NPS introduced by the Government of India w.e.f.
January 1, 2004 videGOI Ministry of Finance, Dept. of Economic Affairs Notification dated
22.12.2003, is a Defined Contribution Pension Scheme replacing the existing system of
Defined Pension System. The system is mandatory for all new recruits to Central
Government service from 01.01.2004 (except the Armed Forces). The monthly contribution
is 10 per cent of the Basic Pay and DA to be paid by the employee and matched equally by
the Central Government. The existing provisions of defined benefit pension and GPF would
not be available to the new recruits in Central Government service. The scheme is
structured into 2 tiers, Tier I (mandatory in all cases) and Tier II (optional).
Contribution and investment returns are deposited in a non-withdraw able pension Tier I
account. In addition to this, individuals may also opt for a voluntary Tier-II withdraw able
account to which the Government will make no contribution. The employee would be free to
withdraw part or all of the second tier of his money at any point in time. This withdraw able
account does not constitute pension investment, and would attract no special tax treatment.
An individual can normally exit at or after the age of 60 years from Tier-I of the pension
system. At exit, the individual would mandatorily be required to invest 40 per cent of pension
wealth to purchase an annuity(from an IRDA-regulated life insurance company). In case of
Government employees, the annuity should provide for pension for the lifetime of the
employee, his dependent parents and his spouse at the time of retirement. The individual
would receive a lump-sum of the remaining pension wealth, which he would be free to utilize
in any manner. Individuals would have the flexibility to leave the pension system prior to age
60.However; in this case, the mandatory annuitization would be 80% of the pension wealth.
147
The Govt. of India established Pension Fund Regulatory and Development Authority
(PFRDA) on10 October 2003 to develop and regulate the Pension Funds under NPS.
PFRDA has appointed National Securities Depository Limited (NSDL) as the Central
Record Keeping Agency(CRA) to maintain the records of contributions and their
deployment in various pension fund schemes for the employees. NSDL has set up aCRA
system for this purpose. The record of the contribution of each employee is kept in an
account known as Permanent Retirement Account which will be identified by a
Permanent Retirement Account Number (PRAN).
The independent PFRDA, which is entrusted with the regulation and development of the
pension market, implements the scheme through intermediaries like the Trustee Bank and
Pension FundManagersBank has nowreplaced BOI as the Trustee Bank w.e.f.
01.07.2013.PFMs offer three categories of schemes to Government servants, viz., options
A, B and C, based on the ratio of investment in fixed income instruments and equities. The
contribution of NPS subscribers is invested in the default Schemes (termed ‘Scheme I’) of
various PFMs(SBI Pension Funds Pvt. Ltd, UTI Retirement Solutions Limited& LIC
Pension Fund Limited). Each PFM will invest 85% of the contributions received by it in
fixed income instruments and 15% in equity and equity related instruments.
Operational Hierarchy and Implementation in PCA (Fys) Organization
The DDOs/CDDOs prepare separate Pay Bill Registers and separate pay bills in
respect of the Government servants joining service on or after 1.1.2004. Whenever any
Government servant is transferred from one office to another either within the same
accounting circle or to another accounting circle, the DDO should clearly indicate in the LPC
of the individual the month up to which Government servant’s contribution and Government
contribution have been recovered. All Cs of F&A(Fys) under Factory Organization function
as Principal Accounts Officer(PrAO) in the CRAsystem for the purpose of the NPS. All Br.
Accounts Offices function as Pay & Accounts Office (PAO) and all Ordnance Factories,
Inspection Organizations, Directorates Of Standardization, RTIs etc. function as Drawing
and Disbursing Officer (DDO) in the CRA system. The P C of A (Fys), Cs of F & A(Fys) and
Br. AOs are also the DDOsfor the DAD staff covered under NPS.
The Principal Accounts Offices, Pay and Accounts Offices, Drawing and Disbursing
Officers and Subscribers are registered under the NSDL System.
Principal Controller’s Office was declared Nodal Office for all the Branch Accounts Offices in
Factory Organization as well as AN-Pay, Pay and Pay ‘O’ Sections of Main Office.
Subsequently, HQrs. Office declared C of F &A (Fys) the Group Pr.AO for the Branch
Accounts Offices under the group, except AO, OF Nalanda, which does not fall under any
group at present. A list of Pr AOs and PAOS functioning under PCA (FYS) organization is
appended as Annexure XLIV.
Procedure for Registration of Subscribers
Immediately on joining Govt. Service, the subscriber should fill the application form
for allotment ofPRAN (S-1 Form) in duplicate and submit it to the DDO.The DDO should
ensure that the duly filled applications are received from the subscribers within seven days
of joining and forward the same to the concerned PAO after necessary attestation. In order
to enable thePAO to upload subscriber contribution record, it is necessary to ensure that
Registration Forms are forwarded to CRA through the CRA-FCs (CRA Facilitation Centre)
for allotment of PRAN.Subscribers who have been successfully registered at CRA are
allotted a 12 digit Permanent RetirementAccount Number (PRAN). PRAN is the unique
identification number of the subscriber.CRA prints and dispatches to the PAO, the PRAN Kit
for the newly registered subscribers. The PRAN Kit contains PRAN Card, Subscriber Master
Details, T-Pin and I-Pin and an information leaflet on CRA .After completion of the
registration process, the PAO uploads the NPS data to the NPSCAN of NSDLand deposits
the contribution amount into the Trustee Bank positively on the date of regular payment. At
the end of the financial year, NSDL issues the IPA (Individual Pension Account) Statement
to the concerned individual whose PRAN has been allotted by NSDL.
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II
RAILWAY SECTION:
DutiesThe Railway Section is responsible for–
(i) Audit classification and Adjustment of Rail charges incurred on Railway Warrants,
Military Credit Notes, Military Special Train Warrant, Form ’C’ and Military Concession
Vouchers issued in connection with movement of troops and Defence stores throughout the
Indian Union;
(ii) Settlement of LTC claims (PBORs of AF & Navy) through reimbursement;
(iii) Submission of statements and statistics to the Administrative and Financial authorities at
DefenceHeadquarters and rendition of financial advice to officers, Units and Formations on
the related matters;
(iv) For settlement of miscellaneous claims such as cost of coal and freight, hire charges,
conversion andre-conversion charges etc. of rolling stock, lent by the Railways to the
Defence Department etc.; and
(v)For adjustment of MROs received from the units/formations against cancellation of
railway warrant.
Note 1: Debits raised by the Railways on account of the amounts chargeable to the Defence
Services Estimates in regard to concession vouchers (IAFT 1720A) etc used while travelling
at their own expense by JCOs of the
Army and their families and corresponding personnel of the Air Force and of the Indian Navy
(unlike debits on account of concession forms used by Commissioned Officers which are
adjustable by paying controllers, as stipulated in Para 89 of Defence Account Code) are also
accepted and finally adjusted by this section.
Note 2: Vouchers not pertaining to this section are returned direct to the concerned railway
after suitable redebitto railways as applicable.
The rules relating to movement of personnel and stores are mainly contained in Travel
Regulations and the rates at which the Railway charges should be admitted in audit are laid
down in Military Tariff, Red Tariff and Tariffs of the different Railways.
The claims dealt with by the section are received either from the Railways or from Units and
formations. Claims of the latter category in respect of LTC journey of Navy Personnel and
last claim of LTCavailed by Air Force Personnel before discharge are paid after pre-audit.
Other than the above LTC journeysin respect of AF Personnel are paid by A.F. Units direct
subject to post audit by this section in accordance with the rules in the Travel Regulations,
the Military Tariff Rules and Railway Tariff Rates while Railway billsare subject to post-audit.
However, PSU bills viz. Konkan Railway Corporation Ltd (KRCL) and ContainerCorporation
of India(CONCOR) etc. are subject to pre audit and payment. The extent to which the
claimsare subject to post-audit is given below:(a) Railway Warrants & Concession Vouchers.
(i) Vouchers up to the value of Rs. 1000 General Scrutiny selected at random
(ii) Vouchers of the value Rs. 1001 & up to Rs.2000 30%
(iii) Vouchers of the value Rs. 2001 & above. 100%
(b) Military Credit Notes
(i) Military Credit Notes of the value of General Scrutiny selected at random
less than Rs. 1000
(ii) Military Credit Notes of the value Rs. 1001 & up to Rs.5000 30%
(iii) Military Credit Notes of value Rs. 5001 & above. 100%
Note: The selection of Railway warrants and Military Credit Notes for general scrutiny is not
subject to any prescribed percentage. The vouchers for general scrutiny shall be selected at
random by the O-in-C of the section concerned.
(c) Military Special Warrant Form ‘C’ 100%
In those cases where percentage audit is involved selection order will invariably be given by
the Officer -in-charge himself and record of vouchers actually audited will be kept in the form
of audit certificate.
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Note 1: With a view to watching whether any increase in the number of vouchers of value
below Rs. 1000 in case of Railway Warrants and Military Credit Notes occurs, a register will
be maintained in manuscript to record the number of such vouchers received from the
Railway authorities every month.
Note 2: Five percent of the audited vouchers will be reviewed by the AAO/SO (A) and one
percent by the Officer-in-charge. The vouchers for review by the AAO/SO (A) will be
selected by the Officer-in-charge. The selection of the vouchers to be reviewed by the
Officer-in-charge should be made by him personally.
1089. Claims on account of Railway Warrants, Credit Notes etc. are preferred by the
Railway against theDefence Department duly supported by these vouchers in original. The
claims of Railway are adjusted by book debit through exchange accounts except KRCL &
CONCOR bills which are settled on cash basis.
With a view to standardizing the system of accounting and modernization of the
organization, the system of manual compilation has been replaced by that of mechanical
compilation. The work of compilation is done on computer in the EDP section. The
classification of vouchers is done in the Railway Accounts sub-Section and audit of
vouchers in the Audit Sub-Section.
The section is divided into the following sub-sections and the distribution of work is shown
against each:(i) General: General administration;
(ii) Accounts: Classification of Railway Warrants, Credit Notes, Concession Vouchers and
booking ofexpenditure;
(iii) Audit: Audit of Railway Warrants, Credit Notes and Concession Vouchers;
(iv) Claims: For settlement of LTC claims through reimbursement;
(v) Miscellaneous: Coal bills and miscellaneous payments i.e hire and freight charges,
conversion andre-conversion charges etc. & charges on maintenance of rolling stock ;
(vi) Co-ordination: Co-ordination (i.e. liaison between different sub-sections) and settlement
of Test Auditobjections & regularization of loss.
General sub section
This sub section deals with all matter relating:(i) To general administration of the section including requirement of establishment, leave
etc;
(ii) To receive, register, distribute & dispatch of dak (except zonal railways bills and
vouchers);
(iii) To indent for receive and distribute stationery and forms and keep an account of the
stock of stationery and forms held in its charge;
(iv) To maintenance of building, furniture & fixture, computers and other devices and other
various housekeeping job;
(v) To arrange for and preserve records/documents in a systematic manner in the record
room and weeding out time expired records.
Note: The detailed procedure relating to the subjects mentioned at item (i) to (v) above, is
laid down in OfficeManual, Part II Vol. I (Chapter on the Record Section & Admin Section).
The special rules laid down in Para 253, Defence Audit Code will be carefully followed and
in addition it should be seen that:(i) The latest edition of the Warrant form only has been used;
(ii) IAFT-1752 (green warrants) is issued for individuals only, IAFT-1707(pink warrants) for
small parties, invalids, families etc., IAFT 1720/1720-A i.e. Concession Voucher (blue
warrants) for individuals and families and pink form (IAFT-1707-A) for troop trains and
reserved vehicles as also for parties sufficient to fill a vehicle;
(iii) Warrants and Credit Notes have been signed by the officers authorized to issue the
same under rules and the seal of office of the issuing officer has been affixed on them;
(iv) The Warrants for parties exceeding 10 in number are not issued by the O.C. Unit or
detachment nor the parties are split up into smaller ones for bringing warrants within the
powers of O.C. Unit/detachment;
(v) The Credit Note has not been prepared by the carbon process of re-duplication;
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(vi) A single Warrant/Credit Note has been issued for the entire journey to cover freight
charges from start to destination and that when two or several Warrants/credit Notes are
issued in connection with the same or special move, they have been cross connected to
ensure that charges have been made correctly.
Correct and complete route
(vii) The cheapest and actual route is shown in Warrants/Credit Notes by the issuing
officers;
(viii) Free Passage authorized for families, servants and baggage is admissible under rules
and that the lien on free conveyance has not been lapsed;
(ix) Warrants are not issued for individuals who are authorized to draw TA;
(x) Warrants wrongly issued for unauthorized persons or quantity of baggage etc. are duly
objected to and their cost recovered at tariff rates and credited to the State and Railway
concerned proportionately;
(xi) The cost of warrants issued in connection with annual training which are chargeable to
the training grant is duly recovered from the G.O.C. Command concerned;
(xii) A single rail fare is allowed for the double journey performed on concession vouchers by
JCOs and their families and similar personnel of the A.F. and I.N;
(xiii) Cases of unauthorized issue of warrants are specially brought to notice with a view to
disciplinary action being taken if it is found that the issuing officer is abusing his powers;
(xiv) Column 3 of the Warrant is correctly filled in with the certificate at the foot of the warrant
duly signed;
(xv) Sanction of the competent financial authority exists for demurrage charges paid by
Credit notes;
(xvi) No Military Credit Notes have been issued to cover (a) under charges (b) freight to
tentage issued on payment hire to officers and warrant officers (c) freight for personnel
effects (d) freight for use of M.E.S.
Piece works and (e) freight for stores issued on loan or for sale to Civil Dept;
(xvii) Freight on baggage of stores on any quantity in excess of the total weight shown in
column 2 of the Warrant has not been debited;
(xviii) one break-van has been allowed free for every troop special and that additional breakvans, if any, attached for Railway purposes have not been charged;
(xix) Charges in lieu of hire have not been claimed for the mileage over the Railway on
which traffic originates and on the first forwarding Railway at each break of baggage or for
Military cars or for wagons attached to goods train;
(xx) When a number of small consignments is booked by a consignor to the same
consignee at short intervals whether it is not feasible to collect them and dispatch as full
wagon load in the interest of economy and the spirit of the cannons of financial propriety is
maintained;
(xxi) (a) the weight of consignments as shown in the credit notes has only been charged for;
(b) Subjects to the minimum weight for charge, fractions of an eighth of a quintal have been
charged as an eighth of a quintal;
(c) Total amount charged is written in both figures and words;
The special rules laid down in Para 253, Defence Audit Code will be carefully followed and
in addition it
(xxii) bulky stores are paid for at vehicle rates but when bagged in bundles or boxed in such
a way as to admit of other goods being accommodated in the same vehicle they are paid for
on the basis of the actual weight;
(xxiii) (a) the Railway claims for explosives and liquid fuel are in accordance with the rules
and rates in the Red Tariff;
(b) the siding, demurrage, crane, insurance Detention, ferry and shunting charges etc. are
accepted only under the terms and conditions laid down in the Military Tariff and the related
Railway Tariffs; and
(xiv) Claims for under charges for fares and freight prepared after the prescribed time limit of
six months are not admitted in audit.
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CHAPTER 10
FUNCTION OF BRANCH ACCOUNTS OFFICE
LABOUR ACCOUNTING
OBJECTIVE
Reading through this Chapter you will come to know:
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Working hours of an Ordnance Factory.
Procedure for marking attendance
Mustering of attendance on Saturday; Saturday "Bonus" Pay.
Daily audit of Muster Roll in Accounts Office.
Day Workers and Piece Workers - how they are paid.
Different elements of Wages entitled to Industrial Employees and their calculation.
Overtime; Departmental OT up to 48 hours; Factory OT beyond 48 hours; Extra
payment for working at night; Treatment in Cost Account.
Agreement Form of Labour.
Disbursement Certificate.
INDUSTRIAL EMPLOYEES IN ORDNANCE & ORDNANCE EQUIPMENT FACTORY:
PAYMENT & ACCOUNTING
Introduction
Classification of workers
The employees in Ordnance and Ordnance Equipment Factories who are employed for
production and maintenance jobs are called Industrial Workers and are classified as:Skilled
Highly Skilled – Grade II
Highly Skilled – Grade I
Master Craftsman
The composition of Industrial employees in each Ordnance & Ordnance Equipment Factory
has beenframed out keeping in view the pattern of production or the jobs to be performed for
production of particular types of items, assigned to the particular factory. These jobs have
been grouped trade-wise as Black smith, carpenters, Electrician etc. and the percentage of
workers under each grade viz. skilled, highly skilled etc. are notified under Govt. Orders
issued from time to time.
45% of the sanctioned post in artisan cadre may be granted the grade of Skilled workers,
25% of the remaining 55% may be granted the grade of Master Craftsman and the
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remaining posts may be divided in the ratio of 50:50 as Highly Skilled worker grade – II and
Highly Skilled worker grade -I.
Under the Factories Act 1948, no adult worker is required to work in a Factory for more than
48 hours in any week. The total normal working hours in a week in the Ordnance and
Ordnance Equipment Factories have, however, been fixed at 44 3/4 hours excluding
intervals for recess. The difference of 3 1/4 hours i.e. complement of 48 hours is known as
Saturday bonus.
In Ordnance Factories, wages payments are compiled under various elements as
determined based on two system of labour remuneration, viz. (1) based on time i.e.
attendance and (2) based on quantity produced.
While the former is known as Day Work System, the latter is Piece Work System.
Procedure of mustering daily attendance
The Wage cycle (calendar month) begins with recording of attendance on daily basis which
is known as mustering. At present two types of attendance recording system are in vogue in
the Ord. & Ord. Equipment Factories viz.
(1) Manual Recording System (2) EARS (Electronic Attendance Recording System).
The main attendance record of the worker is maintained by the Factory Labour Bureau and
is known as 'Muster Roll'.
A normal working day excluding Saturday comprises of 8 (eight) hours. The working hour is
divided into four equal parts. Hence eight hours work in a day represent 4 X 8 = 32 quarters
for every quarter hour the numerator is one. Thus the attendance of the late comers will be
marked short to the extent they are late i.e. 31/32, 30/32, 29/32, 28/32 accordingly as they
are late by 1/4, 1/2, 3/4 and 1 hour respectively, others being marked '1'.
If an IE is absent for the whole Saturday he is not entitled for the benefit of Saturday bonus
but if he is present for part of a day his attendance will be marked as under:Present on Saturday For hours
>0
1
2
3
4
5
6
Booking of attendance
/32 + No. of Qtr. (Max. 3)
17/32
21/32
25/32
29/32
1- 1/32
1-5/32
1
The extra hours i.e. 13/32 hours is called 'Saturday Bonus'.
The effect of grant of Saturday bonus is to increase the period of normal attendance by 3
1/4 hours per week.
In the case of shift workers having 7 1/2 hours effective working on week days and 7 ¼
hours on Saturday marking should be made as follows :Present for hours
Booking on weekdays
Booking on Saturdays
>0
2/32
3/32
½
4/32
5/32
1-1/2
8/32
9/32
2-1/2
12/32
13/32
3-1/2
16/32
17/32
4-1/2
20/32
21/32
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5-1/2
24/32
25/32
6-1/2
28/32
29/32
7-1/2
1
1-1/32
Overtime attendance is marked on the basis of 1/32 of a day for each quarter hour of
overtime irrespective of whether it is on week day, Saturday or Holiday. Overtime memos
are prepared in the case of casual overtime when the shop or section is not working
systematic overtime as a whole. After the close of each week, the progressive total of each
man's attendance for the month is also shown by the Labour Bureau in the muster roll. On
the day following the close of the month, the muster roll will be sent to the Accounts Office
by the Labour Bureau after entering therein the total monthly attendance in respect of each
worker for the completion of the same as regards wages payable to each workman.
(2) Electronic Attendance Recording System
Apart from manual attendance, Ordnance Factories have introduced Electronic Attendance
recording System. At the gate office machines have been installed where Access Control
Cards are used by the IEs to record their timing of entry and exit from factory. This
information along with other relevant information is used to generate the daily attendance of
an IE. Under this system late/ short attendance is recorded in minutes.
Personal Information of IEs
The Labour Bureau will furnish the Accounts Office with daily Statement showing:
(i) Entertainment and discharge of workers.
(ii) Alteration of rates of pay and any other facts connected with worker which may affect
their earnings such as promotion, suspension, transfer etc. A formal change statement
(supported by relevant Factory Orders where necessary) confirming the daily reports from
the Labour Bureau, should reach the Accounts Office not later than the first working day of
the month following that to which it relates.
The Labour Bureau maintains service records for workman.
Wage Payment
In Ordnance Factories, wages payments are compiled under various elements as
determined based on two system of labour remuneration, viz. (1) based on time i.e.
attendance and (2) based on quantity produced. While the former is known as Day Work
System, the latter is Piece Work System. Those who work under Day Work System are
known as Day Worker and those under Piece Work System are known as Piece Worker.
The Piece workers are further subdivided in two categories viz. Individual Piece worker and
Gang Piece worker who work in a gang.
Different element of Wages entitled to Industrial Employees
Wages payable to Industrial employees for any wage period will include (I)
Duty pay at basic monthly rate (for day workers) based on attendance or
Duty pay at basic monthly rate and an element of profit (for piece workers)
calculated on the basis of output (Piece Work Card) and input hours.
Apart from Duty Pay, Personal Pay and Special Pay (e.g. for Promoting Small
family norms) will be admissible as notified in Govt. orders and Guarantee Pay to
Piece Workers where admissible.
(II)
Allowances like Dearness Allowance, House Rent Allowance, Tra nsport
allowance, Hill Area Allowance, Scheduled/ Tribal Allowance, Deputation (Duty)
Allowance, Children Education Allowance, Remote Locality Allowance, Project
Allowance, Night Shift Allowance, at the prescribed rates as laid down by the
Govt. under different rules.
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(III) Incentive Bonus (for Maintenance workers only), Overtime Bonus, Night
Shift Bonus,
(IV) Idle Time Pay, Leave Pay, Holiday Pay, Injury Pay and Segregation Pay
Calculation of elements of Wage
(I) Duty Pay
The pay for a day should be assumed at Basic monthly pay (BP+GP) /N-(S+H) (where 'N'
represents the number of days in a month, 'S' represents number of Sundays in a month
and 'H' represents number of closed paid holidays in that month). No separate payment for
any closed holiday is made. For the purpose of calculating duty pay of a month, this formula
should be multiplied by the number of days actually attended i.e. excluding Sundays and
paid holiday. Thus Duty Pay for a month will be:
(Band Pay + Grade Pay)x Number of Days present
N-(S+H)
(b) The pay for a day for PIECE WORKERS is assumed at Basic monthly pay
(BP+GP)/(N-S) . They are eligible for payment of paid holidays separately in addition to Duty
Pay and Piece Work profit. Thus Duty Pay for a month will be:
(i) (Band Pay + Grade Pay)x Number of Days present
(N-S)
& Holiday Pay will be:
(ii) (Band Pay + Grade Pay)x Number of Paid Holidays falling in that month
(N-S)
IEs who work partly as piece workers and partly as day workers during a wage period, will
be paid proportionate Duty Pay and PW Profit for the period they are put on piece work and
time wages calculated at the rate of (BP + GP) /(N-S) for the period he works as a day
worker. In addition, payment for closed paid holiday, if any falling within the wage period will
be made to him separately as in the case of a piece worker.
For Day Workers:
BP+DA+ Other Allowance xPeriod of Strike (Dies non Period) in hour
N-(S+H)
Normal working hours per day
For Piece Workers:
BP++DA+ Other Allowance xPeriod of Strike (Dies non Period) in hour
N-S
Normal working hours per day
In case of Piece Worker (both IPW and GPW) the input hour is calculated as
No. of days present in month (excluding Saturday & Sunday) x 8
+
(No. of Saturdays present x 4 ¾)
+
(OT Hours Worked – Late Hours if any)
Profit % is worked out as under:
Output (PW Card) Hours – Input Hours x 100
Input Hours
In case of gang piece worker the total input hours of the gang is arrived at by adding the
input hour of each individual worker of gang and the output hour is calculated as the total
hours on the basis of the PW Card. The profit % of the gang is calculated as
(1.25 x Gang Output Hours (PW Card Hours) – Gang Input Hours X 100
155
Gang Input Hours
Note:
Piece work rate will be correlated to the minimum of the pay band- 1 + Grade Pay Rs 1900
i.e. Rs 5200 +Rs 1900 = Rs7100 for all category/grades of workers deployed on piece work
system. The difference between the actual basic pay of a worker and Rs 7100 shall be paid
to him as a separate element as "Incremental Pay". The manufacture warrants will be issued
in terms of time as against in terms of rate per unit under the previous system (excluding
25% built in incentive). However for preparation of wage roll of piece workers and labour
costing output hours will be reckoned as Standard Man Hours (SMH) + 25% built in
incentive. Hence, for computation of Piece Work Profit, output hours will be (1.25 x SMH or
Card Hours).
Thus notional time wage of an individual is worked out as under
7100 x Number of Days Present
(N – S)
+
7100x Total OT Hours worked
200
Amount of profit is calculated as under
Notional time wage XPercentage ofProfit (subject to a maximum of 75)
100
Thus Piece Work earning =
Notional Time Wages + Profit
Guarantee pay
Guarantee pay is admissible to industrial employees of unskilled, semi-skilled and skilled
grade when their piece work earnings during the period of their duty falls below the actual
basic time wages applicable for that period.
NoteFormula for calculation of DA:
Rate for the Month = (BP + GP) x DA%
DA for Day Workers =Rate for the Month x Attendance + LP Days
N – (S+H)
DA for Piece Workers = Rate for the Month x (Attendance + LP Days+HP Days)
N –S
Formula for calculation of HRA
Rate for the month = (BP+GP) x HRA %
HRA for Day Workers =
Rate for the month x {attendance + (LP days+half pay Leave days +EOL days)}
N-(S+H)
HRA for Piece Workers =
Rate for the month x {attendance +(LP days Half pay Leave days +EOL days+
156
N-S
paid holiday days)}
Note: LP days, Half Pay Leave days, EOL days sanctioned for the month only to
be taken for calculation.
Night Duty Allowance (NDA)/ Night Shift Allowance (NSA)
Industrial employees working on night shifts are eligible for Night Duty allowance on the
basis of weight age of 10 minutes for every hour of night duty performed between 22.00
hours and 6.00 hours at the rates specified in the Government orders issued from time to
time. For calculation of weight age, duty for less than half an hour shall be ignored and duty
for half an hour and more but less than 1 hour shall be reckoned as one full hour. The
rounding off of fractions of an hour shall be made with reference to the actual hours of night
duty performed in a month (i.e. wage period and not on daily basis). Night duty allowance
will not be admissible during overtime hours if any falling within the night duty hours. The
allowance will not be treated as 'Pay' for purpose of piece work earnings or for other
allowances admissible to the employees.
Formula for calculation of NDA/NSA
P+DA+(CCA or HCA or TRB)/1170 x NDA/NSA hrs where P stands for Notional Basic
pay as per 4 CPC (as on 31.08.08) + DA @ 148% on P + (CCA or HCA or TRB) as per 4
CPC rate (as on 31.12.95)
Where CCA = Compensatory (City) Allowance, HCA = Hill Compensatory
Allowance and TRB = Tribal Allowance
(III)Incentive Bonus, Overtime Bonus & Night Shift Bonus
Incentive Bonus
Incentive Bonus to the Day Workers of the Ordnance and Ordnance Equipment Factories,
who are employed on maintenance work, will be paid at the rates and subject to the
conditions enumerated below:(i) Incentive bonus will be paid to all maintenance workers other than unskilled workers
employed on maintenance work within the factory premises.
(ii) Workers attached to production sections will be paid bonus at 50 per cent of piece work
profit % earned by the piece workers of the relevant production sections. Workers not
attached to production sections will be paid incentive bonus at 50 per cent of the average
piece work profit % earned by the piece workers in the whole factory
(iii) Maintenance workers in Production Section where P.W. does not exist are also eligible
to incentive bonus @ 50 per cent of average P.W. profits % of the Factory as a whole.
For the purpose of calculation of Incentive Bonus to Maintenance Workers following formula
is to be applied:
Total Time Wages x ½ of PW profit percentage where
Total Time Wages=
7100
N – (S+H)
x No of days Present + 7100
xTotal OT Hours
200
Calculation of Over Time
157
Under Departmental Rules for Day Workers ( For overtime work between 8 hrs and 9
hours on any day or between 443/4 hrs and 48 hrs in a week))
OT PAY =
P +DA for every hour of overtime work between 8
200
hours and 9 hours on any day or between
hours in a week.
44¾ hours and 48
Under Fys. Act for Day Workers
O T Pay
2(P+DA) for Hours of work beyond 9 hours a day or 48 Hours a 200
week
Under Fys. Act for Piece Workers
O T Pay
P/200 x (Total OT Hrs. – OTB Hrs.) +
P
x Hours of work beyond 9 hours a day or 48 Hours a week
200
O T Bonus
P + 1/4P + 2Dx Hours of work beyond 9 hours a day or 48 Hours a
200
week
For calculation of PW Profits, OT Pay for the entire OT period irrespective of Deptt.
Rules and under Factories Act is taken into account for calculation of Notional Time
wages (refer Piece Work Earnings above).
Note: Here P stands for correlated pay as per 6th CPC, P stands for Rs 7100 (i.e.
5400+1900) D stands for DA on P at applicable rate.
Night Shift Bonus (NSB)
A night shift represents the hours worked between the termination of the day shift and the
normal opening hours of the next day. The piece workers who perform overtime work under
Departmental Rules in the night shift will be paid an extra half hour pay termed as 'Night
shift bonus'.
Formula for calculation of NSB
(BANDPAY+GRADEPAY+DA)/200 x ½ of OT Hrs under Dept. Rules during Night Shift
158
Agreement Form of Labour
The Accounts Office will make out an agreement form of labour in prescribed format
in duplicate in which the total amount passed for payment will be entered section-wise. This
will be forwarded to the General Manager of the Factory, who will return one copy duly
completed to show the amount actually paid, un-disbursed wages, fines, licence fee etc.
recovered, income tax, provident fund recoveries and other deductions. All supporting
schedules and documents will also be forwarded along with the agreement form of labour so
as to reach the Accounts Office by 10th of the second month following that to which the
transaction pertains.
Financial Accounting of Labour Charges
The Pay Head of Industrial Employees is 01/805/03. To have detailed idea of expenditure,
unit controls have been allotted for overtime pay, Educational assistance etc. This pay head
will be charged with the entire amount while paying any advance or adjusting any
debit/credit accounted for in the disbursement certificate. Similarly, the pay heads will be
credited (as minus charge) with the entire amount while adjusting any treasury receipts for
amounts deposited against the advance drawn. It is evident, therefore, (with reference to the
entries in the disbursement certificate) that the amount of unclaimed `wages is not charged
to the pay head in the financial accounts although the same is fully charged in the Cost
Accounts. The difference between the cost and financial accounts thus represented by the
unclaimed wages is treated as 'Outstanding Liability'.
159
MATERIAL ACCOUNTING
OBJECTIVE
A thorough reading of this Chapter you will come to know: 











Material Planning Sheets (MP Sheets).
Store Holder Inability Sheets (SHIS).
Different types of Tenders.
Tender Purchase Committee.
Post Audit of Supply Order.
Delegation of Financial powers to General Managers.
Types of Receipts & Issues of Stores & their accounting.
How payment made is linked with material received.
Priced Store Account & Priced Store Ledger.
Procedure for IFD transactions & Stores in Transit.
Sale Accounting Procedure.
Reserve Stock Pile Item.
INTRODUCTION
Material Costs constitute the most controllable costs in the Ordnance Factories set up.
Labour Costs are relatively fixed, as the labour force is permanent and on scales
determined centrally by the Government. It does not normally vary, though in times of heavy
workload, overtime can increase its cost somewhat. But this impact is compensated by
increase in value of production, thereby resulting in the per unit cost being relatively stable,
even lower at times. But material cost can directly impact on the overall cost per unit.
Material management consists of
(1)
Purchase at the optimum prices.
This involves purchases at the
 Right Time, i.e. when the prices are just right. This is especially true of commodities
like Steel, Copper etc. which are cyclical in nature as far as prices are concerned
also, it must be ensured that the purchases do not result is an abnormally large idle
inventory.

Right Sizes: Today, CNC machines optimize cutting sections from a large sheet.
Thus, in making garments, for example, they layout the patterns so that minimum
wastage is there. Buying the cloth in right width can maximize economy. Similar
considerations hold for purchase of Steel or Copper sheets.

Right Quality: Specifications must be just appropriate; neither too poor nor too rich
(why?).

Right Prices: This comes about by ensuring that adequate competition is there
among reliable suppliers. This is the main role of the Finance Reps. In the factors
above are not important for them; it is only that responsibility for those is shared by
the executive authorities equally.
160
(2)
Timing the purchase.
Inventory of materials held in store represent non-value adding costs. Ideally, no inventory
should be held. But in the real world, this results in situations where some material goes out
of stock, resulting in entire production grinding to a stop, even though salaries, fixed
expenses etc. are being incurred. Hence, some inventory is necessary to be held. Scientific
formulae are there which give the maximum, minimum and re-order levels of inventory. For
critical stores, "insurance" stockpiles also should be there.
(3)
Developing the right vendors and sources.
Since the size of the minimum idle inventory depends upon the lead time (i.e. time taken for
supplies to come), having capable and reliable suppliers is very important. In an open
tender, though very low rates are sometimes realized, the reliability of vendors is open to
question. In an effort to secure orders, vendors sometimes over extend themselves and
cannot fulfill the orders. It is important to realize that seemingly lower price can have
disastrous consequences for production if the vendor is not reliable. Vendor development is
thus a very important aspect of the procurement process. Vendor development can be
achieved by aggressive registration, pre-qualification, encouraging new vendors through trial
orders, progressively increasing in size etc.
AUDIT OF MATERIAL PLANNING SHEET AND SHIS
Material Planning Sheet
i) Prior to Computerization of Factories – This is a report generated by the DPS and OFB
on the basis of input data received from Factories concerned regarding opening balance of
Stock, Estimates for materials requirement, punched cards containing information relating to
primary documents related to Stores- Receipt Voucher, issue Vouchers, Demand Notes,
Return Notes, Adjustments Vouchers. Based on these inputs and 4 yearly production
programme computerized Material Planning sheets were prepared by OFB and sent to each
factories at the beginning of the 4 years for subsequent action of provisioning.
Objective: - Objective of this report is that it can become an essential tool for preparation of
material budget at the Boards level as also it can be used as a control mechanism for
verifying the necessity for procurement of any item.
Essentials: –
(i)
Standardization of product code (10 digits). First two-digit vocabulary section,
next three-digit factory unit code and last five digits serial number of folios.
(ii)
Standardization of item code for all materials in the Factory level.
(iii)
Preparation of standard estimates for articles produced in the Factory.
(iv)
Work out output- consumption ratio of the raw materials to the ultimate
furnished product.
(v)
Opening balance, drawal, purchase information.
Audit of MP Sheet- At the time of taking action against any proposal for procurement the
MP Sheet is to be audited to justify the need. While doing that it is to be ensured that there
is a control mechanism for detecting the progress of MP Sheet once prepared through the
system.




M P Sheet should be numbered.
There should not be any blank number without the knowledge of Audit.
M P Sheet prepared on any article must be reflected with the status in
Subsequent M P Sheet on the same article.
161



There should be proper control mechanism to ensure that M P Sheet is not,
Prepared for original raw material at the same item for the alternative item.
Balance in hand is shown correctly.
Dues bin are shown correctly.
Advantage of System
It has more relation to the coming year’s production plan than on the previous year’s history.
Any change in the estimates affected by revision in estimate can be promptly reflected in the
provisioning action.
Disadvantage of System
Audit never feels comfortable, as the Output- consumption ratio worked out by computers is
not visible.
If suitable checks are not in built into the system may lead to over- provisioning.
Ordnance Factories do not have specific production plan, it goes on changing.
SHIS – The full form is Store Holder Inability Sheet. The name itself specifies that in same is
prepared by the store holder while proposing for any procurement. This can be merely
termed as Store Holder’s proposed justification for procurement. It contains stock in hand,
dues, average consumption, liabilities in sight and hence requirement to meet this liabilities.
SHIS for cases valuing less than Rs. 1, 00,000 may not be vetted by LAO. The requirement
for next six month is calculated on the basis of the formula.
6 x Total consumption during the last 24 months
24
Audit of SHIS
SHIS when received in Accounts Office is to be verified by the section to establish.
The SHIS is not duplicated.
Qty of stock in hand is shown correctly in the inability sheet.
Average monthly consumption noted on the SHIS is correct.
Figures of dues shown in the SHIS are correctComparison between MP Sheet &
SHIS
M P Sheet
1) Prepared on the basis of future plan
SHIS
1) Prepared on the basis past experience
consumption.
2) Can take care of any change in the tune
of production associated with revision of 2) No scope for estimating such changes.
estimate.
3) The figure Output–consumption rate
3) All the figures appearing are auditable.
shown cannot be audited.
4) Pro-active action on provisioning can be 4) Only action can be taken when the stock
goes beyond ordinary level.
taken
162
5) Slow process but completely structured.
5) Faster process but need more control on 6) % of audit is laid down in manual.
the system.
6) No audit % has been fixed yet.
DIFFERENT TYPES OF RECEIPTS & ISSUES:
HOW ACCOUNTED FOR
This write up is meant to apprise the trainees the system/ procedure followed and
documents used in Stores Accounting in the Ordnance Factories. The accounting of Stores
must be given considerable importance as more than two-third of the cost of production in
Ordnance Factories is accounted for by the cost of material.
Materials in Ordnance Factories are classified under two Major Heads:(i) Materials on Store Charge.
(ii) Materials on Production Charge.
TYPE OF RECEIPTS
Raw materials are obtained by the Factories by one of the following means: (i) Foreign Purchase.
(ii) Central Purchase through a Central Authority.
(iii) Local Purchase by the General Manager of Factories.
(iv) Supplies from other factories.
(v) Supplies from other branches of Defence Department
(vi) Supplies from departments other than Defence.
Apart from the above the following internal transactions of the Factories are also accounted
for as receipt.
(i)
(ii)
(iii)
(iv)
(v)
Receipt from the production of own Factory.
Receipts from the returns to the Store Section of surplus materials, waste etc
Receipts from surpluses found at Stock taking in the Factories.
Receipt on account of transfers from Capital assets
Miscellaneous receipts from sources other than above as estate produce etc.
TYPE OF ISSUES
Material is issued by the Store Section of the Factory for the following purposes:
(i)
Issues to manufacturing Shops.
(ii)
Issues to other Factories.
(iii)
Issues on payment to other Govt. Departments etc.
(iv)
Issues to other branches of Defence Department.
(v)
Issues on account of Sale by auction.
163
Beside the above the following transactions of the factory are also accounted for as issues.
(i)
Loss of Stores-in-Transit.
(ii)
Loss of Stores on Charge.
(iii)
Loss of Stores due to causes other than above.
(iv)
Transfers to Capital.
(v)
Miscellaneous.
ACCOUNTING OF RECEIPTS & ISSUES OF STORES
M.I.S. is prepared for almost all receipts in the Factory. The MIS is converted in to a receipt
voucher by allotting a No. of the respective Series to which the Store pertains. Issues from
the factory godown or Stores to Shops/ Sections are done through Demand Notes. Any
returns of such stores to godown are done through return notes. Issues to any other concern
are done through Issue Vouchers.
All the primary documents i.e. Receipts Vouchers Issue Vouchers, Demand Note, Return
Note etc. are sent to Accounts Office through EDP duly allotted Sl. Nos. On receipt of these
primary documents in the Accounts Office these are entered in to Schedules for different
classes of documents (viz. Schedule of Receipt Voucher, Schedule of Issue Voucher etc.)
These documents are then priced in the Accounts Office as follows: (i) MIS/ CRV (Local Purchase)  Price quoted on Supply order
(ii) Department other than Defence  Price quoted on the Issue
Receipt from other Ord. Fys.
Vr. of the supplying deptt.
(iii) Other branches of Defence  Stock Book or priced vocabulary rates
(iv) Own Fy. Manufacture
 At actual cost of production.
PRICING OF ISSUE DOCUMENTS
(i) D/ Notes and R/ Notes  Monthly Average Ledger Rate.
(ii) Sale Voucher  At Sale rate.
(iii) Loss Statement
(Other than transit  Average Ledger Rate
(iv) Loss of Sores- in – transit  Rate at Which connected receipt
Voucher is priced
(v) Payment Issue  (i) Average Ledger Rate (ii) Plus 5%
Addl. Charges plus 5% addl. On (i) + (ii)
The receipt and issue vouchers after pricing are entered in to the monthly Priced Store
Account (PSA) under different Codes for different sources of receipts and issues. Similarly,
the value of Demand and Return Notes is entered in the PSA to arrive at the net receipt and
net issue. Thereafter, these are added with the closing balance of the previous month to
arrive at the total raw – material inventory at the end of the month.
Receipt and Issue Vouchers are thereafter sent to Material Ledger Section for posting in the
Priced Store Ledger (PSL) maintained and operated jointly by the Provision Section of the
Factory and Material Ledger Section of the Accounts Office Demand and Return Notes are
received by Material Ledger Section directly from Factory and after pricing on the basis of
Average Ledger Rate are posted in the PSL. The Receipt Vouchers are required to be
posted in the PSL first and then the Demand and Return Notes.
Every month control total of the PSL (Volume wise) is required to be reconciled with the
closing balance of the PSA. At the end of the financial year, the extracted balance of each
item of the PSL must agree with the closing balance of the consolidated PSA for the year.
HOW THE PAYMENT MADE IS LINKED WITH MATERIAL RECEIVED.
164
In the case of all Stores for which payments are made/ book debits are received / priced
copies of issue vouchers are furnished, hundred percent linking has to be done. Linking
consists of two parts. :
(i)
Linking payments with receipt vouchers. Unlinked items represent payments made
for which receipt vouchers are awaited. These are called ‘Outstanding Assets.
(ii) Linking of Receipt Vouchers with “Payment made”. Where the unlinked vouchers
represent” Stores received “for which payments are to be made. These are called
“Outstanding Liabilities.”
Through the medium of linking registers maintained in the Material Section of Accounts
Office for each category of receipt–FP, CP, LP, IFD etc. it is ensured that all stores invoiced
to the factory and all Stores for which payment has been made have been received and
accounted for. This is done by posting the details of bills/ invoices and receipt / issue
vouchers in the linking registers.
WHAT IS PSA-PSL
A priced Store Account detailing the receipt and Issue transactions from stock in each
month under the various heads specified in Forms IAF (FAC) –15 for Receipt and IAF
(FAC)- 16 for issues is prepared by Material Section every month after generation of
Computerised PSA report for the concerned month and submitted to the Costing Section by
15th of the month following for the purpose of posting in Principal Ledger.
PSL generated every month from Computer details item code wise (concerned for the
material dealt with) transactions of all receipts and issues showing UOQ (Unit of Quantity),
Opening Balance, details of Receipt Voucher, Return Note or Adjustment Receipt Vouchers
for receipt transactions and Demand Notes, Issue Voucher or Adjustment issue Voucher for
issue transactions, M.A.Rate, closing balance etc. Work order No., Warrant Nos. is given for
the materials drawn on DN or returned on RN are shown against the concerned transaction.
At the end of the year a Consolidated PSA and PSL are also generated through Computer
containing all transactions pertaining to the year.
RECEIPT VOUCHER & ISSUE VOUCHER
Receipt Vouchers (IAFZ- 2096) is prepared by Factory for stores to be brought in charge of
Factory Stock. For Stores received from outside Factory, a material inward slip is prepared
to show full particulars of stores and the result of their examination by the Inspection
section. Accordingly no separate receipt voucher is prepared for the same where MIS is
prepared. Receipt Voucher No. is given on the MIS. Receipt Voucher or MIS is received in
M Sec. Of AO and watched through Priced Store Schedule for continuity. At the end of the
month after checking all Receipt Vouchers are received in AO as per skeleton list same are
handed over to EDP Section for Data entry. Similarly IFD receipt vouchers are also sent to
EDP section for same purpose.
Likewise, Issue Vouchers received from the factory are also entered in the schedule of
vouchers to watch continuity and sent to EDP section at the end of the month. Receipt
Adjustment Vrs, (If any) is also forwarded to EDP Section.
DEMAND NOTES & RETURN NOTES
Demand and Return Notes received from Factory are entered in serial nos. in the register of
schedule of demand and return notes [IAF (Fac-37)] to watch the receipt of all Demand
and Return Notes issued by the factory. All DN/RN received by M section thus scheduled
are dispatched to EDP section by 5th of the following month.
165
DATA ENTRY
All the data pertaining to Receipt Voucher, Issue Voucher DN/RN are entered in the
respective file and a checklist is generated to examine that there is no error in the entry or
duplication or Missing of voucher is there. Special attention is paid to see that the UDQ,
PSACD entered is correct. In some factories data are captured from factory source.
PRICING OF RECEIPT VOUCHERS
For pricing of Rt. Vrs. Other than IFD Rt. Pricing (SO) bar of Update menu is selected. In
case of any error, re-pricing may also be done in the system after revising the necessary
entry.
Similarly for IFD Rt.Vrs. We select interactive receipt voucher Pricing (IFD) option of Update
menu pad of main menu.
Before pricing of Rt. Vrs. New folios for new items of materials are to be appended in item
master file.
Pricing of Demand & Return Note and Issue Vouchers are made through system w.r.t.
Average Ledger Rate
IFD Transaction in Ord. Fys
The full form of IFD is Inter Factory Demand. There are various sources of receipt of
material in the Factory which are : (i) Trade sources.(ii) Receipt from other Factories,(iii)
Receipt from non military Department or from other Defence establishments etc. So IFD
transaction is one of the sources of procurement of material in Ordnance Factories.
Procedure
On planning of yearly Production of a Factory, the Factory will prepare requirement of
material for the planned production activities. Then they will try to ascertain the source from
where the material to be procured. As per the existing rule they should first try to get the
material from sister Factories and then from trade source to maintain the quality of
Production .So on ascertainment of material, which can be procured from sister Factory.
They will float demand to other Factories. The document prepared for placing demand is
IFD –Inter Factory Demand. Two copies of the IFD will be received in Accounts Office of the
Intending Factory. Who after post audit will pass on one copy to, Indentee Factory Accounts
Office for record & watch the supply. So, IFD is a type of extract or may be called as
authority for undertaking production in the supplying factory.
Types of IFD transactions
There are two types of IFD supply: (1) supply from Production, (2) Supply from stock. So
Issue Voucher serial will accordingly vary with series of “P” or “S” as the case may be.
Placing of IFD Receipt Vouchers
Receipt vouchers related to trade supply are priced with reference to supply orders. But in
case of IFD transactions the only source of evaluated document are Issue Vouchers
received from Accounts Office of supplying factory. So receipt vouchers are priced with
reference to price Issue vouchers of the supplying Factory. Factory management of recipient
is quoting issue voucher no, date & supplying factory concerned to link the issue value and
price the Receipt vouchers correctly.
166
Linking of IFD transaction
On receipt of Issue vouchers from supplying factory are noted in a Register Factory wise
with Issue Voucher no., Date, Quantities, &
Value. So according the quoting of factory & issue Vouchers No. on Receipt Vouchers the
receipt transaction can be linked easily and clear the out-standings at Receipt sources. The
issuing factory is also sending an ID list monthly & then yearly from which the correctness of
posting can easily be ascertained & corrected. The unlinked items will be considered as SIT(Stores in Transit).
STORES IN TRANSIT (SIT)
A yearly statement of IFD transaction is prepared by the Accounts office of recipient Factory
in the following Format:
ADD
LESS
Stores in transit
on 1st April
Stores
received
Stores for which
from other Fys
Stores in transit
Receipt Vouchers
during the year as
on 31st March
Prepared
per ID list
Stock
(i)
Stock
(ii)
Prod
Prod
Stock
(iii)
Prod
Stock
(iv)
Prod
Various types of errors and increase of SIT
As per instruction or rule Receipt Vouchers on IFD transactions are required to be prepared
but following types of problems are normally seen.
i)
Non receipt of Issue voucher at management end.
ii)
Back loaded material returned on regular voucher.
iii)
Discrepancies in quantities and delay in settlement.
iv)
Delayed action for keeping stock holding at lower side.
v)
Wrong documentation by supplying factory & delay in settlement.
RESERVE STOCK PILE ITEM
Strategic items of stores while are very difficult to procure in case of failure of normal
supplies are classified as Stork Pile Items. A reserve of such stores is built up separately
from working stock in order to meet the demands of future production in case of failure of
normal supplies.
167
COST ACCOUNTING
OBJECTIVE
After completing this Chapter you will be able to understand:
 Types of Extracts.
 What is a Warrant?
 Work Orders & its purpose.
 Standard Estimates - their pricing & re-pricing system.
 Cost Card - What does it contain?
 Posting of actual figures from various tabulations in the Cost Card.
 Semi - Concept, Necessity, Pricing & final treatment in Cost Accounting.
 Working out of abnormal rejection cost
 Arriving out Cost of Production and analysis of variances.
 Overheads Accounting - Definition, Classification, Collection, War Insurance Charge
 Allocation and apportionment of Overheads: Step Ladder System.
 Fixation of Budgeted Overheads; Central Budget Committee & Shop Budget
Committee.
 Reconciliation between Financial Accounts & Cost Accounts: -Principal Ledger Purpose.
 Capital Assets
EXTRACTS
An Extract is the authority for the manufacture of an article in a Factory. It is issued by OFB
to enable the Factory to undertake manufacture in respect of all out turn Work Orders and
certain Indirect Service Work Orders. One Extract is placed for one Work Order. Copies of
all Extracts as well as amendments relating thereto will be received in the Accounts Office
direct from OFB or through the Finance Division, OFB, if they relate to Army, Navy, Air
Force, MES or Stock Orders.
CLASSES OF EXTRACTS
Extracts are divided into the following classes:
Class I
Class II
Class III
Class IV
Class V
For
Army Orders and
Navy and Air Force
For Payment Services
For Inter Factory Demands
For Stock
For Capital Services
miscellaneous services like repairs for
WARRANT
It is an authority for undertaking manufacture of an article by the Productive Shop/Section. It
is issued by the General Manager of the Factory. Work Office of the Factory issued Warrant
to the respective Manufacturing Sections to undertake the job. It contains Material to be
used and operation wise Trade/Grade of labour to be employed to complete the article to be
manufactured. A Warrant Number is of five digits, e.g. 0000/0, where the fifth digit denotes
as under:
0 for Main Warrant Number
1 for Extra Labour demployed as per NRR
2 for Extra Material drawn as per NRM
3 for Replacement Warrant for excess rejection
4 for Additional number of the existing warrant
Action Taken by Accounts Office on receipt of Warrant
A warrant is received by Costing Section of Accounts Office & issued by Works Office of the
Ordnance Factory. A warrant contains two parts:
 Manufacturing Warrant
168

Material Warrant
Manufacturing Warrant contains the following:
 Original Authority for doing the work i.e. Extract Number
 A Relevant Estimate Number
 Description of the Work
 SWO Number
 Quantity of work to be done
 Operation to be performed
 Trade & Grade of Labourer to be employed
 Time required for operation
 Hourly Rate of the operator
 Total amount of Basic labour required
Material Warrant contains the following:
 Nomenclature of the materials required for the product to be
manufactured
 Ledger Folio Number of the material
 Unit of the material e.g. Kg, Litre, Meter etc. in codified number
 Quantity of material required
 Remarks
Work Orders
A Work Order is a codified list consisting of nine digits and represents for which service is to
be rendered by its first two digits, nomenclature of the subject store to be manufactured by
next five digits and last two digits will indicate the code number, of the shop/section who will
undertake the manufacture. Where a operations is passed through various shop/section for
completion of the manufacture the last two digits in the case will be 00.
Work Order Serial
01
For Fixed Charges
02
For Variable Charges
03
For Process Material
04
For Capital Services
05
For Repairs & Conversion
06
For Cost of Packing
08
For Conversion of Timber
10
For Manufacture for Stock of article other than Standard Packages and
Component of Out turn Orders
11
For Manufacture of articles for Stock for eventual utilization in issue to Trade
12
For Manufacture for Stock of Standard Packages
13
For Manufacture for Stock of Components of another Orders
including
Ammunition
40
For Manufacture of Components for Except Orders
41
For Manufacture of PPL Items
50
For Educational Orders
51
For Expenditure for NCC Organization
60
For Development Orders
70
For Issues/Services to Inter Factory Demand
80
For Payment Services to private Civil Inventors
81
For Payment Services to members of permanent Establishment
82
For Payment Services to all Central Govt. departments except MHA
83
For Payment Services to State Govt. and Union Territories (other than State
Police)
84
For Services to Foreign Governments
85
For Services to Air Force
86
For Services to Navy
87
For Services to R&D Organisation
169
88
89
90
91
92
93
94
96
For Services to Inspection Organization
For Services to MES
For Services to Army
For Services for presentation purposes to MOD
For Services to other Defence Departments
For Services to MHA
For Services to PSU & Autonomous Bodies
For Services to State Police/ State Police of Union Territory
In the above Series of Work Orders, the "01" and "02" Series are known as Indirect Series of
Work Orders. Rest of the Work Orders represents Direct Series of Work Orders.
PRICING OF ESTIMATES.COST ABSTRACT ANDSEMI-PRICING
Pricing of Estimates
In Branch Accounts Offices it is the primary duty of the Accounts Office to ascertain
the cost of the materials/items produced in the Factory. This job is being dealt with in the
costing system of the Branch Accounts Offices.
COST CARDS
Each Warrant against a certain Work Order is a authority for undertaking production
of a batch. Against each Warrant a Cost Card is opened in Accounts Office to watch
production of a batch.
Information available in the Cost Cards
(1)
Authority for Production i.e. Extract No. or IFD No.
(2)
Work Order No and Warrant No.
(3)
Quantity Ordered.
(4)
Estimate No(s).
Source of Postings
(1) Labour Abstract: All piece work cards, day work cards, allocation sheets and the labour
punching media pertaining to a month are sent to the E.D.P. Section of the Accounts Office
for the preparation of labour abstract through Costing Package. While forwarding these
documents, the Labour Section also intimates control totals of each kind of document
pertaining to each section. The Labour Abstract is prepared section-wise showing each work
order and warrant the amount of labour booked. Charges shown in the labour abstract are
inclusive of all elements of pay as mentioned in Para 200A and 200B above. A top sheet is
also prepared for each section showing the total charges booked against each work order
series (01, 02, 70, 90, etc. series) and also the grand total for the section.
Semi Concept
In the process of Production it is not expected that all the items placed on pipeline will be
completed within the running financial year i.e. within 31st . March of a year. So the question
of ascertainment of cost of the item in pipelines i.e. incomplete articles and No. Since
completed against the Warrants not declared closed by the Management within the financial
year arise. On 31st March the Management will take the stock taking at each Shop floor to
identify the items still on pipeline and will record in a Statement called Semi Statement and
forwarded the same to the Accounts Office for evaluation. Accounts Office will verify the
correctness of the record and will get it modified by them if any wrong is detected. Then the
Accounts Office will evaluate the Semis well before the closing of the accounts of the year,
with reference to drawal position and labour payment taken and will segregate thus arrived
at cost of the incomplete items to be shown as Unfinished semi. An example is shown
below:
W.O
Quantity ordered
170
Quantity accepted
Wt No.0011010
Section
01
02
Total
Value
of
Completed
Articles
Value of
Unfinished
semi
Labour
100
100
Material
5000
VOH
300
200
FOH
200
100
Total
5600
400
200
150
5000
3000
500
300
300
150
6000
3600
50
2000
200
150
2400
PRINCIPLES OF COST ACCOUNTING: OVERHEADS ACCOUNTING
Definition: Overhead Charges constitute a Class of Cost, which cannot be directly charged
to the Product. To arrive at a true Cost of the Product it is essential that a proper system of
accounting of charges incurred by the Service Sections or by the Production Section itself in
the shape of supervision, security, welfare, power, steam water are collected and distributed
to the Products) of the Shop. Service Charges of the above nature, which are common to all
the Production Sections but cannot be charged directly to the output of that Section/Shop,
are called Indirect Charges or Overheads.
Classification of Overhead Expenses: Under the existing system, Overhead Charges
arising in Ordnance and Ordnance Equipment Factories are classified into Variable and
Fixed categories, the former being recovered in full against Production and the latter at
predetermined percentages after deduction of the War Insurance Charges and certain
expenditure which are kept out of Production Cost.
In Cost Accounting, Overhead expenses, which are in sympathy with the load of the
Factory, are classified as `Variable' and these expenses, the magnitude of which would
depend upon policy decision and generally remain constant irrespective of the load/volume
of Production are classified as ‘Fixed’ Charges.
Item of expenditure classified as Fixed and Variable are detailed in ‘01’ & ‘02’ Series
of the Syllabus of Work Orders respectively. At present there are 55 Work Orders under ‘01’
Series and 26 Work Orders under `02' Series.
COST CARD - OPENING AND CLOSING
Cost Card by Warrants will be maintained manually in the local Accounts Office in
prescribed Proforma. For this purpose Cost Card will be opened immediately a Warrant is
issued. Particulars regarding Extract No., Quantity ordered, Work Order/Warrant No.,
Nomenclature of the item to be manufactured and element wise Estimated Cost will be filled
in. Opening of the Cost Card will be authorised by the Section Officer. In the case of
Warrants which are carried forward from the previous year, opening value of the semi under
the different element of cost as well as the estimated cost of items will be filled in.
POSTING IN THE COST CARD
Posting in the Cost Card will be done by the Auditor concerned of Costing Section from the
following monthly Abstracts received from EDP Centre:




Material Abstract
Labour Abstract
Overheads Abstract
Transfer Voucher Abstract
171

Component Abstract
Closing of Cost Card
When Warrants will be declared
Costing Section from the following monthly Abstracts received from - EDP Centre:





Material Abstract
Labour Abstract
Overheads Abstract
Transfer Voucher Abstract
Component Abstract
Closing of Cost Card
When Warrants will be declared completed, a list showing the names of Warrants
along with completed Shop copies will be received in Accounts Office. Costing Section will
called for the Accounts copies both Manufacturing as well as Material Warrants duly filled in
from Labour and Material Sections respectively and paired with the completed Shop copies
and tagged up with the relevant Cost Card for taking necessary action to close them.
To ascertain the actual Cost of Product as well as unit element of Cost and Unit cost
of product it is very much essential to close a Cost Card. Moreover, any variation in element
of cost should be critically analysed while closing a Cost Card so that the same could be
taken into the notice of Factory Management to take remedial action for future production of
the article.
In the case of Warrants running from the previous year it should be ensured that the
Cost Card has been debited with opening semi, if any. Replacement warrant and Warrants
for Tools & Gauges manufacture on the parent Work Order with sub numbers will similarly
be annexed with respective Cost Card and all enclosed to the Cost Card for the parent Work
Order. It should be ensured that the details of all expenditure recorded against a Warrant
should be available when a Warrant is finally closed, no matter how long a Warrant has
been running. The original Cost Card of the past year/years in regard to a warrant closed in
the current year should be available.
The class of cost wise expenditure debited to the Work Order during a year by
section and month separately and the class of cost wise value of the opening semi, if any,
will be cross totaled and reconciled. The total figures under each element of cost appearing
in the Cost Cards for replacement and tool and gauge warrant will be brought forward and
debited separately to the cost card for the parent work order. All the debits viz. The opening
semi expenditure during the year, cost of replacement, tool and gauges charges by class of
cost will be cross-totaled and reconciled.
It is also to be determined whether any avoidable rejection has occurred in the
warrant. The amount of avoidable rejection will be calculated and deducted from the
expenditure recorded in the Cost Card. This amount will be excluded from Production
Account of the Factory.
Comparison of Actual Cost and Estimated Cost
The element wise actual cost of a product may vary from its estimated cost. If the variation is
more than (+/-) 10%, the reasons for variation should be done critically.
Generally variation may occur due to following reasons:
Variation in Labour Cost
Due to
 Change in DA%
172










Rejections
Replacement
Performance of more or less operations
Wrong preparation of Piece Work Cards
Wrong pricing of Piece Work Cards
Deployment of other Trade/Grade of Labour as well as Day Worker instead of Piece
worker
Changes in method of manufacture
Wrong posting in Cost Card
Wrong assessment of Semi
Use of NRRs
Variation in Material Cost
Due to
 Rejection and Replacement
 Change in Average Ledger Rates
 Wrong preparation of Demand/Return Notes
 Wrong pricing of Demand/Return Notes
 Wrong pricing/posting of Transfer Vouchers
 Wrong assessment of Semi
 Costly materials drawn
 In lieu material drawn
 Material drawn through NRMs
Variation in Overheads Cost
Due to




Variation in labour cost as explained above
Variation of percentages of overheads
Wrong posting in Cost Card
Wrong assessment of Semi
Analysis of Expenditure and Elements of Cost
The expenditure incurred in manufacture is classified under three main categories
viz.
(a) Wages paid to Industrial Workers
(b) Materials
And
(c) Other Expenses
In relation to Product Costs, the expenditure falling under the above three categories
are further classified as DIRECT and INDIRECT expenditure.
For the purpose of Costing, Wages are analyzed into DIRECT LABOUR Cost and
INDIRECT LABOUR Cost
Similarly, Materials are analyzed into DIRECT MATERIAL Cost and INDIRECT
MATERIAL Cost.
173
Other Expenses, the bulk of which represents Salaries paid to Supervisory Staff and
Administrative Personnel fall under the category of INDIRECT Expenditure
Indirect Labour, Indirect Material and other Indirect Expenses together constitute the
Overhead Expenditure of the Factory.
While the Direct Labour Expenditure and Direct Material Expenditure incurred in the
manufacture of each product can be measured accurately and charged direct to each, job,
the Overhead Expenditure representing the cost of various production and administrative
services incidental to Production can not be charged directly to each job such expenditure
being common to all production activity is apportioned to the cost of each job as equitable as
possible following certain well recognized cost accounting principles
By means of the above type of analysis, the cost of each article manufactured in the
Factory is compiled under three elements of Cost viz. (i) Direct Labour, (ii) Direct Material
and (iii) Overheads.
CLASSIFICATION OF CAPITAL
Capital Assets in a factory are classified under three main heads:
i) Building
ii) Machinery
iii) Other items
The items falling under Building are;
(a) Industrial Building i.e. Building within the four walls of the FY whether used for
Production or Non-production purposes any factory sections (except offices) outside factory
walls.
(b) Non-industrial Building i.e. office outside the Fy. Perimeter wall, Hospitals/ M. I. Room,
Staff Club etc., and
(c) Residential Buildings
Machinery
Machinery (including air-cooling plants), Steam lunch barges, Locomotives, Railway Wagon,
Station Wagon, Motor lorries, Weighing machine, Sewing machines, Furnaces
Other items
Other items are water or gas lines, openly visible lines filter units (filter plant for water
supplies) incinerators, railway lines and railway sidings (if installed and or maintained by
Fys), Tube wells, Remington Accounting Machines etc., Lands, and Roads. Drains,
Telephones Chimneys, Electrical installation, Leveling site, Jetties, Steel furniture & fitting,
Computer etc
BLOCK REGISTER
The Accounts of Capital Assets in the Fys are maintained in two Block Registers on IAF
(FAC) 77 by Accounts offices, One for Building items and other for Machinery items.
Block Register shows:
1)
2)
3)
4)
The original purchase value.
1st. Year Depreciation
Opening balance of the Book Value of the Capital Assets.
Addition during the year.
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5) Reduction during the year, including Annual Depreciation
6) The closing depreciated book value at the end of the year.
Block Register
The accounts of Capital Assets in the factories are maintained in two Block Registers on IAF
(Fac) 77 by Accounts Office. One for Building items and the other for Machinery items.
While the Block Register for
Machineries will show only the Book Value of the Machinery, a complete record of accounts
of the Building items of the factory will be maintained showing the depreciated value of the
Buildings at the year-end. Block Register for Machineries will continue to show only the
Book Value as it should remain in perpetuity whereas Block Register for Building and other
items etc. will show: (i) The original purchase value
(ii) First year’s depreciation charges
(iii) Opening balance of the book value of Capital Assets other than Plant & Machineries
(depreciated book value in the case of depreciable items)
(iv) Additions during the year.
(v) Reduction during the year (including the annual depreciation) and
(vi) The closing depreciated book value at the end of the year.
‘
In the new computerized system and milieu the Block register is prepared and
maintained through package. The program will be run in the month of April every year i.e.
after closure of the financial year. After closing the Annual Capital Account a printout of
Block register generated through package will be taken and kept for record as a Block
Register.
An idea about Principal Ledger maintained in the
Branch Accounts Office of Ordnance Factories
Principal Ledger is maintained outside all financial accounts by the concerned Accounts
Officers for the purpose of preparing the consolidated Manufacturing Accounts viz.
Production Accounts, Finished Stock Accounts and Capital Accounts and arriving at the cost
of Production of articles manufactured in the factory.
The different heads in the principal ledger are so arranged as to provide information
required for the compilation of the consolidated Manufacturing Account and also for effecting
reconciliations of the figures compiled in Cost Accounts.
The following heads of Accounts (Total 30) are at present maintained in the Principal
Ledger: 1.
2.
3.
4.
5
6.
7.
Custom Duty A/c.
Stores Cash Purchase A/c.
Stores Supplied by other
Factories A/c.
Transportation Charges Account.
Stores A/c.
Sale of Stores (Surplus obsolete & Waste) A/c.
Issue of Stores on Payment A/c.
175
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Wages A/c.
Supervision Charges A/c.
Misc. Charges A/c.
Misc. Credit A/c.
Overhead Exp. A/c.
Work-in-Progress A/c.
Rent, Rates, Water and Electricity charges Recoverable A/c.
Payment Services A/c.
Manufacture for Own Fy. Stock A/c.
Services to other Fys.A/c.
Services for Capital Asset A/c.
Manufacture for the Army A/c.
Profit and Loss A/c.
Capital Assets A/c.
Proforma Capital Asset A/c.
Capital Assets Stock Pile A/c.
Cash Ledger A/c.
Preliminary Exp. A/c.
Deferred Revenue Exp. A/c.
O/s Asset A/c.
O/s Liabilities A/c.
Capital Outlay A/c.
Balance A/c.
Posting into Principal Ledger are generally made month wise, For which transactions are
first need to be journalized based on the data available from the following documents
compiled monthly.
i) Priced Store A/c (Showing For better appreciation copy of
Issues and Receipts of
PSA for 4/91 in r/o M & S. Fy Stores) and Journal
Entries there of
ii) Cash compilation (Showing Copy of Summary Sheet of 0002 Receipts and
Expenditure for 4/91 in r/o M & S. Fy., and compiled) Journal Entries prepared
iii) Cost tabulation
iv) Manufacturing A/c -Statement A & B.
Reconciliation of Cost and Financial Accounts
Vouchers, through which financial transaction takes place, are classified in accordance with
the budget heads they pertain to and a consolidation of such financial compilations with
details are sent monthly to each Branch Accounts Office. These transactions are journalized
by Dr. or Cr. to Capital Outlay A/c. and posted in the Principal Ledger.
On the other hand, expenditure on labour, Material and other charges compiled to Cost of
Manufacture through Cost documents like D.W. and P.W. Cards. Demand/Return Notes,
Allocation Sheets etc. are all posted in Principal Ledger to the debit credit of the respective
Subsidiary accounts like Wages accounts, Store A/c, Supervision charges A/c. Misc.
charges A/c. etc. to be finally transferred to the Work-in-Progress A/c. and there from to the
Capital Outlay A/c.
Thus figures from both ends are finally booked to Capital outlay A/c. and the fact that all
expenditure which has appeared in financial compilation has been incorporated in Cost
Accounts is automatically verged by Capital Outlay A/c. which balances to itself.
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CHAPTER- 11
CONTRACTING
WHAT IS A CONTRACT?
In simple terms a ‘Contract’ is a promise that the law will enforce. The law provides
remedies if a promise is breached and recognizes the performance of a promise as a duty.
Contracts arise when a duty does, or may come into existence, because of a
promise made. To be legally binding as a contract, a promise must be exchanged for
adequate consideration. Adequate consideration refers to the benefit that a party receives,
which induces them to enter into a contract.
Contracts are mainly governed by statutory law, which may require contracts to be
put in writing and executed with particular formalities.
The Indian Contract Act of 1872 contains the law relating to contracts. Although
based on British Common Law on Contracts, the Indian Law is more comprehensive and
differs on matters of detail and principles. It has, as is evident, been enacted keeping in view
the Indian context and circumstances.
The Act deals with the general and limiting principles applicable to all contracts such
as the formation, validity, performance or breach and the remedies for the breach of
contract.
The Indian Contract Act is not a complete code on contract. Statutes dealing with
special types of contracts like the Negotiable Instruments Act 1881, The Indian Arbitration
and Conciliation Act 1996, The Sale of Goods Act 1930 etc do not form part of the main
Contract Act.
“Every promise and every set of promises, forming the consideration for each other,
is an agreement” (Section 2 (e) of the Indian Contract Act, 1872). In the eyes of the law, an
agreement which is enforceable by law is considered to be a contract. (Section 2 (h) of the
Indian Contract Act, 1872).
The conditions required to be met for any agreement to qualify as a contract are laid
down in Section 10 of the Indian Contract Act, 1872. As per this clause, all agreements, if
made by the free consent of the parties who are competent to contract and for a lawful
consideration and with a lawful object, are deemed to be contracts.
CONTRACTING IN GOVERNMENT
Government is, by far, the largest contractor in any country. So too in India. It contracts
variously at the central and state levels for supply of products (purchases) and services
(Contractor services, consultancy services, labour etc.)
Three characteristics set government spending apart from private spending:
First, government contracts are heavily regulated to curb misappropriation of funds and
ensure uniform policies and practices across agencies.
Second, the contract terms are the product of careful drafting by a team of experts in
government and have often received distinct meaning through past contract adjudications.
And third, because of the government’s special status, disputes under government contracts
follow a very different procedural path than those arising under private contracts.
WHAT IS THE SIGNIFICANCE OF GOVERNMENT CONTRACTS?
There is an essential difference between a contract entered into between private persons
and that entered into with Government as one party.
In so far as a contract between two private parties is concerned, a contract will be absolutely
binding and valid if the conditions referred to in Section 10 of the Indian Contract Act, 1872
are satisfied. In the case of government contracts, however, the mere provisions of the
Contract Act, 1872 are not sufficient while for a valid contract to be formed between the
Government and a private party, the stipulations of Art. 299 of the Constitution of India have
to be met fully.
CONSTITUTIONAL PROVISIONS
Under Article 299 of the Constitution of India, all contracts made in the exercise of the
executive power of the Union or the State shall be expressed to be made by the President
or by the Governor of the State as the case may be and all such contracts and all
177
assurances of property made in the exercise of that power shall be executed on behalf of
the President or the Governor by such person and in such manner as he may direct or
authorize.
Neither the President nor the Governor shall be personally liable in respect of any contract
or assurance made or executed for the purpose of this Constitution, or for the purposes of
any enactment relating to the Government of India heretofore in force nor shall any person
making or executing any such contract or assurance on behalf of any of them be personally
liable in respect thereof.
JUDICIAL PRONOUNCEMENTS
The Supreme Court has held that the provisions of Article 299 of the Constitution of India
were not inserted for the sake of form but to safeguard the interest of the Government
against unauthorized contracts. If in fact a contract is unauthorized or is in excess of
authority, it is right that the Government should be safeguarded. On the other hand, an
officer entering into a contract on behalf of the Government can always safeguard himself by
having recourse to a proper form.
Three essential conditions for a valid contract between the Government and a private party
as recognized by the Supreme Court are as follows:
> It must be expressed to be made by the President or by the Governor of the State as the
case may be.
> It must be executed for and on behalf of the President or the Governor as the case may
be.
> Its execution must be by such person and in such manner as the President or the
Governor may direct or authorize.
If the above conditions are not satisfied, the contract is void and there is no question of
estoppel or ratification. Generally in all branches of government, specific posts are identified
and assigned the role and responsibility of contracting and only such posts have the power
to bind the government.
The provisions of Art 299 of the Constitution of India are mandatory. As such, a contract,
which does not comply with the formalities prescribed there in, is unenforceable in the eyes
of law.
COMPETENCY TO ENTER INTO GOVERNMENT CONTRACTS
The authorities legally empowered to enter into contracts and to whom the powers have
been delegated under Art. 299(i) of the Constitution of India to execute contracts at the
State level are required to be listed out clearly in the Departmental orders/ Manuals of each
State Government. No authority lower in rank than the officer identified in the said rules is
competent to exercise these delegated powers. These delegated powers can, however, be
further delegated to officials at various levels in the official hierarchy so that the execution of
contracts of differing values can be taken up at the appropriate levels.
GENERAL CONDITIONS OF CONTRACT
The General Conditions of Contract are terms that have been formulated in advance for an
indefinite number of contracts of a certain nature, and which have not been individually
negotiated between the parties. A large number of contracts, especially relating to buildings
and engineering works as well as purchase of goods are carried out in Government through
contracting out. Any amount of ambiguity in the interpretation of the clauses and terms of
the contract is likely to lead to litigation, loss of resultant goodwill and waste of time.
The legal and contractual obligations of government contracts are generally required to be
enshrined in Government Orders which would be in the form of working instructions to the
Government official, in respect of the rules for contracting, their powers and the procedures
to be followed. These orders are of course subject to periodic review and revision either on
account of lacunae that become evident in its enforcement or on account of reform initiatives
envisaged by the respective governments towards refinement and transparency in
procedure or towards enforcing better accountability in the functioning of the Government.
The General Conditions of Contract are supplemented by the Special Conditions of
Contract applicable for specific nature of contracts. It is to be noted that in case of any
conflict between the General and Special Conditions of Contract, the latter conditions shall
prevail.
REFERENCE TO ADJUDICATION
178
Any dispute or difference of any kind that arises between the department and the contractor
in connection with or arising out of the execution of a contract or work, either during the
progress of work or after its completion or before or after its termination or abandonment or
breach shall first be referred for settlement to the executive in charge of the work (the tender
accepting authority). In the event of such difference not being settled to the mutual
satisfaction of the two parties, the agreements provide for a reference to arbitration.
All matters of dispute related to the implementation of the contract are referred to arbitration
including such issues pertaining to non-payment for work executed. However, all contracts
of government contain clauses referred to as ‘excepted matters’ which are clearly not
arbitrable and on which he decision of the Engineer is final. Such clauses related to matters
on the quality of work, measurements, mixing of material, rejection of defective work,
scaffolding instructions and construction of temporary structures. This chapter is covered in
greater detail later. Suffice that a large number of contracts in government are referred to
arbitration, the reasons for which are not far to seek.
While contracts are no doubt the responsibility of the engineer or the executive in charge of
its execution, the implementation of the contract conditions in government is largely
constrained by its organizational structure, the delegation of powers and dependent on the
judicious exercise of these powers. Litigation in government arises on account of delay or
indecision, inadequate pre-contract preparation, modifications in the scope of the contract
during the execution of the work on account of inadequate and bad planning or design and
delay in payments for work actually executed. To a great extent, it would not be wrong to
say that contracts in government are largely one-sided i.e., advantageous to the one party to
the contract, namely the government.
ESSENTIAL CHARACTERISTICS OF A CONTRACT
1.
The terms of the contract must be clear and precise. There should be no room for
ambiguity or misinterpretation.
2.
Time is the essence of contracts
3.
No contract involving an uncertain or indefinite liability or any condition of an unusual
character should be entered into.
4.
The terms of the contract should be enforced strictly. This responsibility rests with
both parties to the agreement even in the case of government contracts.
5.
Revision of rates in accepted agreements during the currency of such agreements is
prohibited.
NATURE OF CONTRACTS IN GOVERNMENT
While by and large, when one speaks of contracts in government, it is with reference to the
execution of civil works such as construction of buildings, roads, emergency works relating
to restoration of breaches and dams. Alternatively, contracts entered into for purchase of
goods by issue of a purchase order and such comes to mind. It is also a fact, however, that
the scope of the term contract has, over a period of time become enlarged to cover other
services.
The activities in Government today have become numerous and wide ranging. Hence,
barring what is considered its core activity or business, in many governments, there is a
concerted move towards outsourcing of its non-core activities and contracts are being
concluded for rendering services, such as
•
Annual Maintenance Contracts for equipment and machinery
•
Service contracts for upkeep of sanitation in office premises, catering services,
maintenance of gardens, security services, maintenance of computer networks
•
Contracts for the sale of goods such as vehicle, used machinery and equipment and
paper
•
Contracts for intellectual collaboration and know-how in new areas of functioning
such as development of software, business process re-engineering and collaboration with
industry in research and technology issues etc.
•
Outsourcing of responsibilities that were hitherto the solely that of the Government
such as the construction of over bridges and highways as well as the maintenance and
upkeep of these structures over a period of time.
PROCUREMENT OF GOODS AND SERVICES
179
In the planned economy model of development the state undertakes a direct role in
the development of the economy.Since, the independence of India the procurement of
goods and services became a major activity of the state in the furtherance of its objectives.
Purchase is also an important administrative function in the maintenance of an office
or a production unit to keep producing items for which it is set up.
In relation to office it is expenditure or purchase out of office contingency or other
grants for the purpose and in relation to production unit it is purchase out of purchase grant
for stores.
DECISION MAKING
What is to be considered in decision making process for purchase?
Need:
Whether the purchase is really necessary?
Alternative:
Whether alternative exists?
Quantity:
In what quantity it is required?
Price:
What would be the total estimated costof procurement?
Fund: Whether necessary fund is available for thepurchase?
Source:
From where to purchase?
Time:
By what time procurement should becomplete?
Quality:
Whether the quality of item to bepurchased is compatible with theprice and
meet user’s requirement?
Procurement Under Defence Services:The procurement under defence services broadly
includes the following:
1. Procurement of goods
2. Procurement of services
3. Works contract
All the above are fundamentally guided by the provisions under the General Financial Rules,
2005. However, in terms of Rule 135 of the GFR, 2005 the Ministry of Defence has
issuedDefence Procurement Manual, 2009with effect from 1st of April 2009, which contains
principles and procedure relating to procurement ofgoods and services for the Defence
Services, Organizations andEstablishments.
For all Capital Acquisitions,(except medical equipment) undertaken by the Ministry of
Defence, Defence Services and IndianCoast Guard both from indigenous sources and eximportDefence Procurement Procedure, 2008 (DPP-2008) but in this regard Defence
Research and DevelopmentOrganisation (DRDO), Ordnance Factory Board (OFB) and
Defence Public Sector Undertakings(DPSUs) will, however, continue to follow their own
procedures for procurement.
All Defence Works Contract are governed by Regulations for the Military Engineer Services,
MES Manual of Contracts, Defence Works Procedure, IAFW-2249 etc.
The fundamental provisions from GFR, 2005 are provided below.
IMPORTANT PROVISIONS &GUIDELINESFROM GFR, 2005
Powers for procurement ofgoods : The Ministries or Departments have been delegated
full powers to make their own arrangements for procurement of goods. In case however, a
Ministry or Department does not have the required expertise, it may project its indent to the
Central Purchase Organisation (e.g. DGS&D) with the approval of competent authority. The
indent form to be utilised for this purpose will be as per the standard form evolved by the
Central Purchase Organisation.-GFR Rule 140
Authorities competent to purchase goods: An authority which is competent to incur
contingent expenditure may sanction the purchase of goods required for use in public
service in accordance with Schedule V of the Delegation of Financial Powers Rules, 1978,
following the general procedure. -GFR Rule 138
Procurement of goods required on mobilisation : Procurement of goods required on
mobilisation and/or during the continuance of Military operations shall be regulated by
special rules and
orders issued by the Government on this behalf from time to time.GFR Rule 139
Purchase through a Central Purchase OrganizationIn case a Ministry / Department does
not have the required expertise or manpower, it may send its indent to the Central Purchase
Organization (e.g., DGS&D) with the approval of its Secretary. The indent form to be utilized
for this purpose will be as per the standard form evolved by the Central Purchase
Organization.
180
Preferential/Mandatory
Purchase
from
certain
sources
Product
ReservationKhadi Goods/Handloom TextilesReserved Products of SSIPurchase Preference
to Central Public Sector Undertakings Preferential purchase policy for certain
medicinesPrice Preference
Purchase of Goods Without Quotation: Goods uptoValue of RS.15000/- on each
occasionmay be procured without inviting quotation.
Certificate to be recorded by the competent Authority: –
“I,------ am personally satisfied
that these goods purchased are of the requisite quality and specification and have been
purchased from a reliable supplier at a reasonable price.” -GFR: Rule 145
Purchase of Goods through Purchase Committee:Purchase of goods costing above Rs.
15,000/- (RupeesFifteen Thousand) only and uptoRs. 1,00,000/- (Rupees One lakh) only on
each occasion may be made on therecommendations of a duly constituted Local Purchase
Committee consisting of three members of an appropriatelevel as decided by the Head of
the Department. The committee will survey the market to ascertain the reasonablenessof
rate, quality and specifications and identify the appropriate supplier. Before recommending
placement of the purchaseorder, the members of the committee will jointly record a
certificate as under.
“we _____________________, members of the purchase committee are jointly and
individuallysatisfied that the goods recommended for purchase are of the requisite
specification and quality, priced at the prevailingmarket rate and the supplier recommended
is reliable and competent to supply the goods in question.”-GFR: Rule 146
Purchase of Goods by obtaining bids(Tendering)
Types of Tender :In broader terms there are three types of tender  Open Tender
 Limited Tender
 Single Tender
Advertised Tender Enquiry (open)
(i) Invitation to tenders by advertisement shouldbe used for procurement of goods of
estimated value Rs. 25 lakh (Rupees Twenty Five Lakh) and above.
Advertisement in such case should be given in the Indian Trade Journal (ITJ),
published by the DirectorGeneral of Commercial Intelligence and Statistics, Kolkata and at
least in one national daily having widecirculation.
An organisation having its own web site should also publish all its advertised tender
enquiries on the website and provide a link with NIC web site. It should also give its web site
address in the advertisements in ITJand newspapers.
Ordinarily, the minimum time to be allowed for submission of bids should be three
weeks from the date ofpublication of the tender notice or availability of the bidding document
for sale, whichever is later.
Wherethe department also contemplates obtaining bids from abroad, the minimum
period should be kept as fourweeks for both domestic and foreign bidders.
Limited Tender Enquiry
This method may be adopted when estimated value of the goods to be procured is up to
Rupees TwentyfiveLakhs.
Copies of the bidding document should be sent directly by speed post/registered
post/courier/e-mail to firms which are borne on the list of registered suppliers for the goods
in question
The number of supplier firms in Limited Tender Enquiry should be more than three.
Further, web based publicity should be given for limited tenders.
Purchase through Limited Tender Enquiry may be adopted even where the
estimated value of theprocurement is more than Rupees twenty-five Lakhs, in the following
circumstances.
 The demand is urgent
 It will be in public interest to procure the goods through advertised tender enquiry.
 The sources of supply are definitely known and possibility of fresh source(s) beyond
those being tapped, is remote.
Two Bid System: For purchasing high value plant, machinery etc. of a complex and
technical nature, bids may be obtained in two parts as under :181
(a) Technical bid consisting of all technical details alongwith commercial terms and
conditions; and
(b) Financial bid indicating item-wise price for the items mentioned in the technical bid.
The technical bid and the financial bid should be sealed by the bidder in separate covers
duly superscribed and both these sealed covers are to be put in a bigger cover which
should also be sealed and duly superscribed.
The technical bids are to be opened by the purchasing Ministry or Department at the first
instance and evaluated by a
competent committee or authority. At the second stage
financial bids of only the technically acceptable offers should
be opened for further
evaluation and ranking before awarding the contract.
Single Tender Enquiry.
Procurement from a single source may be resorted to in the following circumstances :
(i) It is in the knowledge of the user department that only a particular firm is the manufacturer
of the requiredgoods.
(ii) In a case of emergency, the required goods are necessarily to be purchased from a
particular source andthe reason for such decision is to be recorded and approval of
competent authority obtained.
(iii) For standardisation of machinery or spare parts to be compatible to the existing sets of
equipment (on theadvice of a competent technical expert and approved by the competent
authority), the required item is to bepurchased only from a selected firm.
PAC:Proprietary Article Certificate in the following form is to be provided by the Ministry /
Department before procuring the goods from a single source:
CERTIFICATE
i)
The indented goods are manufactured by M/s…………
ii)
No
other
make
or
model
is
acceptable
for
the
following
reasons:……..…………………………..
iii)
Concurrence of finance wing to the proposal has been obtained vide
………………………………….
iv)
Approval of the competent authority has been obtained vide :
………………………………………..
(Signature with date and designation of the procuring officer)
Contents of Bidding Document : All the terms, conditions, stipulations and information to
be incorporated in the bidding document are to be shown in the appropriate chapters as
below :i)
Chapter – 1 : Instructions to Bidders.
ii)
Chapter – 2 : Conditions of Contract.
iii)
Chapter – 3 : Schedule of Requirements.
iv)
Chapter – 4 : Specifications and allied Technical Details.
v)
Chapter – 5 : Price Schedule(to be utilised by the bidders for quoting their prices).
vi)
Chapter – 6 : Contract Form.
vii)
Chapter – 7 : Other Standard Forms, if any, to be utilised by the purchaser and the
bidders.
Bid Security/Earnest Money Deposit
To safeguard against a bidder’s withdrawing or altering its bid during the bid validity period
in the case of advertised or limited tender enquiry, Bid Security (also known as Earnest
Money) is to be obtained from the bidders except those who are registered with the Central
Purchase Organisation, National Small Industries Corporation (NSIC) or the concerned
Ministry or Department.
The bidders should be asked to furnish bid security along with their bids.
Amount of bid security should ordinarily range between two percent to five percent of the
estimated value of the goods to be procured.
The exact amount of bid security, should be determined accordingly by the Ministry or
Department and indicated in the bidding documents.
The bid security may be accepted in the form of Account Payee Demand Draft, Fixed
Deposit Receipt, Banker’s Cheque or Bank Guarantee from any of the commercial banks
in an acceptable form, safeguarding the purchaser’s interest in all respects.
The bid security is normally to remain valid for a period of forty-five days beyond the final
bid validity period.
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Bid securities of the unsuccessful bidders should be returned to them at the earliest after
expiry of the final bid validity and latest on or before the 30th day after the award of the
contract.
Performance Security :
To ensure due performance of the contract, Performance Security is to be obtained from the
successfulbidder awarded the contract.
Performance Security is to be obtained from every successful bidder irrespectiveof its
registration status etc.
Performance Security should be for an amount of five to ten per cent. of thevalue of the
contract.
Performance Security may be furnished in the form of an Account payee DemandDraft,
Fixed Deposit Receipt from a Commercial bank, Bank Guarantee from a Commercial bank
in anacceptable form safeguarding the purchasers interest in all respects.
Performance Security should remain valid for a period of sixty days beyond the date of
completion of allcontractual obligations of the supplier including warranty obligations.
Bid security should be refunded to the successful bidder on receipt of Performance Security.
Evaluation Process - micro
The factors for initial examination:
Whether the tenderer meets the eligibility criteria ?
Whether the crucial documents have been submitted & duly signed / attested ?
Whether the requisite EMD (Earnest Money Deposit) has been furnished ?
Tender evaluation to be in accordance with evaluation criteria.Time taken for evaluation and
extension of tender validity.Process of tender evaluation to be confidential until the award of
the contract is notified.
PROCUREMENT OF SERVICES
The Ministries or Departments may hire external professionals, consultancy firms or
consultants (referred to as consultant hereinafter) for a specific job, which is well defined in
terms of content and time frame for its completion or outsource certain services.
Engagement of consultants
Engagement of consultantsmay be resorted to in situations requiring high quality services
for which the concerned Ministry/ Department does nothave requisite expertise.
Approval of the competent authority should be obtained before engaging
consultant(s).
The Ministries/Departments should prepare insimple and concise language the
requirement, objectives and the scope of the assignment.
The eligibility and prequalificationcriteria to be met by the consultants should also be
clearly identified at this stage.
Ministry or Department proposing to engage consultant(s) shouldestimate reasonable
expenditure for the same by ascertaining the prevalent market conditions and consulting
otherorganisations engaged in similar activities.
Identification of likely sources :
(i) Work or service is upto Rupees twenty-five lakhs :Where the estimated cost of the
work or service is upto Rupees twenty-five lakhs, preparation of a long listof potential
consultants may be done on the basis of formal or informal enquiries from other Ministries
orDepartments or Organisations involved in similar activities, Chambers of Commerce &
Industry, Associationof consultancy firms etc.
(ii) Work or service is above Rupees twenty-five lakhs: Where the estimated cost of the
work or service is above Rupees twenty-five lakhs, in addition to (i) above,an enquiry for
seeking ‘Expression of Interest’ from consultants should be published in at least one
nationaldaily and the Ministry’s web site.
On the basis of responses received from the interested parties, consultants meeting the
requirements should be short listed for further consideration. The number ofshort listed
consultants should not be less than three.
Issue of Request for Proposal (RFP)
RFPis the document to be used by the Ministry/Department for obtaining offers from the
consultants for the required work/service.The RFP should be issued to the shortlisted
consultants to seek their technical and financial proposals.
The RFP should contain :
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(i) A letter of Invitation
(ii) Information to Consultants regarding the procedure for submission of proposal .
(iii) Terms of Reference (TOR).
(iv)Eligibility and pre-qualification criteria incase the same has not been ascertained through
Enquiry forExpression of Interest.
(v) List of key position whose CV and experience would be evaluated.
(vi)Bid evaluation criteria and selection procedure.
(vii) Standard formats for technical and financial proposal.
(viii) Proposed contract terms.
(ix) Procedure proposed to be followed for midterm review of the progress of the work and
review of the finaldraft report.
-GFR Rule 171
Receipt and opening of proposals:Proposals should ordinarily be asked for from
consultants in ‘Twobid’ system with technical and financial bids sealed separately. The
bidder should put these two sealed envelopes in a bigger envelop duly sealed and submit
the same to the Ministry or Department by the specified date and time at the specified place.
On receipt, the technical proposals should be opened first by the Ministry or Department at
the specified date, time and place.-GFR Rule 172
Evaluation of Technical BidsTechnical bids should be analyzed and evaluated by a
Consultancy Evaluation Committee (CEC) constituted by the Ministry or Department. The
CEC shall record in detail the reasons for acceptance or rejection of the technical proposals
analyzed and evaluated by it.
-GFR Rule 174
Evaluation of Financial Bids of the technically qualified bidders :
The
Ministry or Department shall open the financial bids of only those bidders who have been
declared technically qualified by the Consultancy Evaluation Committee as per Rule
174.Subsequently, further analysis or evaluation and ranking for selecting the successful
bidder for placement of the consultancy contract shall be carried out.
-GFR Rule 175
Monitoring the Contract: The Ministry/Department should be involved throughout in the
conduct of consultancy, preferably by taking a task force approach and continuously
monitoring the performance of the consultant(s) so that the output of the consultancy is in
line with the Ministry /Department’s objectives.-GFR Rule 175
Outsourcing of Services Outsourcing of Services A Ministry or Department may
outsource certain services in the interest of economy and efficiency; and It may prescribe
detailed instructions and procedures for this purpose without, however, contravening the
following basic guidelines.-GFR Rule 178
Identification of likelycontractors:The Ministry or Department should prepare a list of
likely and potential contractors on the basis of formal or informal enquiries from other
Ministries or Departments and Organisationsinvolved in similar activities, scrutiny of ‘Yellow
pages’, and trade journals, if available, web site etc.-GFR Rule 179
Preparation of Tender enquiry:Ministry or Department should prepare a tender enquiry
containing, interalia :
(i) The details of the work or service to be performed by the contractor;
(ii) The facilities and the inputs which will be provided to the contractor by the Ministry or
Department;
(iii) Eligibility and qualification criteria to be met by the contractor for performing the required
work/service;and
(iv) The statutory and contractual obligations to be complied with by the contractor. -GFR
Rule 180
Invitation of Bids:
(a)Work or service upto rupees ten lakhs or lessFor estimated value of the work or
service upto rupees ten lakhs or less :The Ministry or Department should scrutinise the
preliminary list of likely contractors and decide the prima facie eligible and capable
contractors and issue limited tender enquiry to them asking for their offers by a specified
date
and time etc. as per standard practice. The number
of the contractors so
identified for issuing limitedtender enquiry should not be less than six.-GFR Rule 181
(b) For estimated value of the work or serviceabove rupees ten lakhs:
The Ministry or Department should issue advertised tender enquiry asking for the
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offers by a specified date and time etc. in at least one popular largely circulated national
newspaper and web site of the Ministry or Department.
Evaluation of Bids Received:
The Ministry or Department should evaluate,
segregate, rank the responsive bids and select the successful bidder for placement of the
contract. -GFR Rule 183
Monitoring the Contract: The Ministry or Department should be involved throughout in
the conduct of the contract and continuously monitor the performance of the contractor.GFR Rule 185
LEGAL & STANDARD TERMINOLOGIES
Proposal or Offer: When one person signifies to another his willingness to do or to abstain
from doing anything, with a view to obtaining the assent of the other to such act or
abstinence, he is said to make a proposal or offer. In a sale or purchase by tender, the
tender signed by the tenderer is the proposal. The invitation to tender and instructions to
tenderers do not constitute a proposal.
Acceptance of the Proposal: When the person to whom the proposal is made signifies his
assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a
promise.
Consideration:
When, at the desire of the promisor, the promisee or any other person
has done or abstained from doing, or does or abstains from doing, or promises to do or to
abstain from doing, something, such act or abstinence or promise is called a consideration
for the promise
Agreement: Every promise and every set of promises, forming the consideration for each
other, is an agreement Promises, which form the consideration or part, of the consideration
for each other are called reciprocal promises An agreement not enforceable by law is said to
be void
Contract: The proposal or offer when accepted is a promise, a promise and every set of
promises forming the consideration for each other is an agreement, and an agreement if
made with free consent of parties competent to contract, for a lawful consideration and with
a lawful object is a contract.
Due diligence: The formal process of investigating the background of a business, either
prior to buying it, or as another party in a major contract. It is used to ensure that there are
no hidden details that could affect the deal.
Warranties: Promises made in a contract, but which are less than a condition. Failure of a
warranty results in liability to pay damages but will not be a breach of contract unlike failure
of a condition, which does breach the contract.
Guarantee A secondary agreement by which one person promises to honour the debt of
another if that debtor fails to pay. Banks and other creditors often call on directors of small
companies to give their personal guarantees for company debts. A guarantee must be in
writing. The guarantor can only be sued if the actual debtor can't pay, in contrast
to indemnity.
Indemnity A promise by a third party to pay a debt owed, or repay a loss caused, by
another party. Unlike a guarantee, the person owed can get the money direct from the
indemnifier without having to chase the debtor first. Insurance contracts are contracts of
indemnity: the insurance company pays first, and then tries to recover the loss from whoever
caused it.
Covenant - a promise within a contract for the performance or non-performance of a
specified act.
Disclaimer - a written document denying legal responsibility, or a limitation of rights that
might otherwise be claimed.
Easement - an interest in land owned by another that entitles its holder to a specific limited
use or enjoyment eg the right to cross the land, or to continue to have an unobstructed view
over it.
Caveat emptor: Buyer Beware. This is a general rule that it is up to the buyer to find out if
what they are buying is what they want. Consumer regulations require certain information to
be disclosed to consumers and insurance contracts are covered by the Uberrimae fides but
many types of business contracts are covered by the caveat emptor rule.
Uberrima fides:
Utmost good faith. The concept that a party to certain types of
contract must act in good faith and declare all relevant facts to the other side even if they do
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not ask. This only usually applies to insurance contracts where the insured person must
declare all known risks. It is an exemption to the general contract rule of caveat emptor.
Paripassu: Equal and Even. This relates to shares to denote that newly issued shares have
the same rights and restrictions as those of the same class already existing.
Force Majeure:
It means an event beyond the control of the supplier and not involving
the supplier’s fault or negligence and which is not foreseeable. Such events may include,
but are not restricted to, acts of the purchaser either in its sovereign or contractual capacity,
wars or revolutions, hostility, acts of public enemy, civil commotion, sabotage, fires, floods,
explosions, epidemics, quarantine restrictions, strikes, lockouts, and freight embargoes.
Fall clause: It is a price safety mechanism in rate contracts. The fall clause provides that if
the rate contract holder reduces its price or sells or even offers to sell the rate contracted
goods following conditions of sale similar to those of the rate contract, at a price lower than
the rate contract price, to any person or organization during the currency of the rate
contract, the rate contract price will be automatically reduced with effect from that date for all
the subsequent supplies under the rate contract and the rate contract amended accordingly.
Turnkey Contract: A mix of goods contract and works contract. The purchase organization
specifies the performance and output required from the plant to be set up The inputs and
other facilities, to be provided to the contractor are also indicated. The contractor is to
design the plant and quote accordingly. Contractor supplies the required goods, machinery,
equipment etc. needed for the plant; assembling, installing and erecting the same at site as
needed; commissioning the plant to meet the required output etc.
Cost plus Contract: A cost plus contract means a contract in which the price payable for
supplies or services under the contract is determined on the basis of actual cost of
production of the supplies or services concerned plus profit either at a fixed rate per unit or
at a fixed percentage on the actual cost of production.
Rate Contract: A Rate Contract (commonly known as RC) is an agreement between the
purchaser and the supplier for supply of specified goods (and allied services if any) At
specified price and terms & conditions (as incorporated in the agreement) during the period
covered by the Rate Contract.
No quantity is mentioned nor any minimum drawal is guaranteed in the Rate Contract. The
Rate Contract is in the nature of a standing offer from the supplier firm. The firm and/or the
purchaser is entitled to withdraw/cancel the Rate Contract by serving an appropriate notice
on each other. However, once a supply order is placed on the supplier for supply of a
definite quantity in terms of the rate contract during the validity period of the rate contract,
that supply order becomes a valid and binding contract.
CVC Guidelines: Pre-Award Stage
Financial and Technical sanction of competent authority is available.Adequate and wide
publicity is given.Advertisement is posted on website and tender documents are available
for downloading.Convenient tender receiving/opening time and address of the tender
receiving officials/tender box are properly notified.In the case of limited tender, panel is
prepared in a transparent manner clearly publishing the eligibility criteria. The panel is
updated regularly.Pre-qualification criteria are properly defined/ notified.
CVC Guidelines: Pre-Award Stage
Short listed firms/consultants are fulfilling the eligibility criteria. There is no deviation from
notified criteria during evaluation.Experience certificates submitted have been duly
verified.Tenders/bids are opened in the presence of bidders/their authorised representative.
Corrections/omissions/additions etc., in price bid are properly numbered and attested and
accounted page –wise. Tender summary note/ Tender opening register is scrupulously
maintained.Conditions having financial implications are not altered after opening of the price
bids.
CVC Guidelines: Negotiations Circular No. 4/3/07, 3rd March, 2007
As
post
tender negotiations could often be a source of corruption, it is directed that there should be
no post-tender negotiations with L-1, except in certain exceptional situations. Such
exceptional situations would include, procurement of proprietary items, items with limited
sources of supply and items where there is suspicion of a cartel formation. The
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justification and details of such negotiations should be duly recorded and documented
without any loss of time.
SPECIAL FEATURE IN PROCUREMENT OF PLANT & MACHINERY
Investment in Plant & Machinery is a vital decision in any manufacturing organization. The
same is equally applicable to the Indian Ordnance Factories. Indian Ordnance Factories,
being the Nation's Fourth arm of Defence, has the primary objective of manufacturing and
issuing the Indian Armed Forces with modern and sophisticated weapons, ammunitions,
armoured vehicles, transport vehicles and equipment. Manufacture of Defence stores in
Indian Ordnance Factories utilises a large number of P&M. Accordingly, these factories
need Plant & Machineries in replacement of outlived ones as well as for capacity
augmentation and modernisation.
One pertinent challenge before the Organisation is to meet the changing requirement of the
users, which necessarily entails induction of machines with State of the Art Technology for
flexibility, higher productivity and enhanced quality. In the meantime, the industrial scenario
in the country has undergone rapid changes with economic reforms and policy liberalisation.
Import restrictions have also been removed to a large extent. Customs regulations have
been modified. After the decentralization, Ordnance Factories are procuring the P&M, which
were earlier made through DGS&D, except for common user items, which are continued to
be procured through DGS&D Rate Contract
FORMULATION & APPROVAL OF DEMANDS
The procurement of P&M is aimed at creation of long term asset and hence, has to be
meticulously planned and effectively implemented to achieve the objectives of time, cost and
performance. Each investment proposal for procurement of Plant and Machinery shall be
made by raising Demands on case to case basis except for Government sanctioned
projects.
Initiation of procurement action for any Plant and Machinery shall invariably be the outcome
of ongoing review of requirement of new machines based on the perspective production
load and existing machine capacity.
All investment decisions should necessarily be based on a realistic assessment of
production load vis-à-vis known demand from the user / services on a medium term (5 to 10
years) time scale.
Capacity planning for P&M:
a.The number and capacity of P&M shall be decided on the basis of requirement of the
product/material to be produced/ processed, including rejection/wastage/ proof, for the end
products and peak load expected in the medium term (5-10 years).
b. Capacity is calculated considering the cycle time stipulations, wherever applicable, and
taking into account machine efficiency of 80% and human efficiency of 80%, i.e. overall 64%
efficiency.
c. Normal working of machines is taken as two 8-hour shifts per day. Saturday is taken as 4
3/4 hrs. The total working hours of a machine per year is taken as 4414 hrs. Basis of
calculation: [365-52(Sat)-52(Sun)-16(GH)]x2x8 + 52Satx2x4.75 = 245x2x8+52x2x4.75 =
3920 + 494 = 4414 hours.
d. Example: Suppose the final capacity required for end product is 75 Million Rounds per
year and 10% is taken as rejection/proof wastage. Then, the capacity required is 75/0.9 =
83.33 Million/annum. Assuming that the machine produces 250 components/ minute i.e.
15,000 per hour, the production from one machine in a year = 15000x4414x0.8x0.8 =42.374
187
Million. Therefore, the number of machines required will be 83.33/42.374 = 1.966 i.e. 2 (two)
Nos
e. Normal working of plants is taken as 22 days/month (one day weekly off and one day for
cleaning/maintenance per week) and considering 2 months in a year for annual
maintenance shutdown i.e. total 220 days per annum. Example: Suppose the quantity of
product required is 500 MT/annum and about 10% is process wastage/rejection. Then, the
plant capacity to be purchased shall be specified as 500/(0.9x220x0.8x0.8) = 3.946 MT/day
i.e. 4 MT/day.
f. Normally, plants are run continuously i.e. three shifts / day. Some explosive plants are not
run in night shift for safety reasons; normal working for such plants may be taken as one 8hour shift or two 8-hour shifts (as applicable) per day. Therefore, in addition to capacity/day,
the number of shifts/day shall also be specified in the tender as applicable for the plant.
Projection of manpower for sanction in new projects:
The requirement of Direct IEs is calculated taking SMH output of 2691* hours per annum
per person. Indirect IEs can be projected from Direct IEs by applying appropriate
Direct:Indirect ratio.
* = (52*54*0.85-144)x1.5/1.25; considering 52 weeks/year, 54 hours/week,15%
absenteeism, paid holidays for 16 days (144 hours) and 50% piece work profit.
Heads of Procurement of Plant & Machineries:
Procurement of Plant and Machineries in the Ordnance Factories are initiated under two
heads viz. Renewal & Replacement (RR) and New Capital (NC). The Renewal Replacement
Fund was created with effect from 1.4.1990 under Public Fund Account and introduced for
financing the Renewal and Replacement programmes of Ordnance Factories. This is done
by making a provision for depreciation in the accounts for the purpose of replacement of
fixed assets, when the need arises. This depreciation fund is then normally utilized for
replacing the assets when the existing assets have served their useful life. Therefore, the
machines under RR are required to renew and replace the old capacities of the factories,
whereas, the Plant and Machineries under NC are meant for creating new capacities or
augment them or improve productivity and quality of existing production lines. The
procurement of Plant & Machinery under RR & NC heads is aimed at accelerating
modernization of Ordnance Factories, so as to keep pace with the fast changing product mix
and induction of new productive technologies
Depreciation norms:
Plant & Machineries procured in the factories are depreciated at specified rates to recover
the investments made for their procurement using the Straight Line Method. In this method,
depreciation a machine may become due for replacement, when its residual book value
becomes zero or when it is categorized as ‘beyond economical repair’, on the basis of
assessment of machine condition and due recommendation of a Technical Committee.
Machine which is proposed for replacement based on expected completion of its life, it is
prudent that the replacement action of such machines are initiated at least 3 years in
advance, keeping in view the lead time required for procurement of P&M. Demand of such
machine shall be vetted by LAO without insistence on B.E.R. certificate. On receipt of
replacement, the machine for which replacement actions were taken is to be disposed off.
The depreciation norms are prescribed below:
i. Plant & Machinery (life- 20 years) : Annual Depreciation @ 5% of the P&M cost.
ii. Tool Room machine : A machine unable to give the desired accuracy may be utilized in
the Tool Room for lesser accuracy job or transferred to Production shop at the end of 10
years. Thereafter, replacement proposal may be processed against either under RR or NC,
depending upon the location at the time of replacement.
188
iii. Considering rapid changes in technology and obsolescence of electronic system e.g.
CNC control of Plant and Machinery, Electronic telephone exchange or similar electronic
systems etc., such replacement may be considered after 7 years.
iv. Air Conditioners and Refrigerators : annual depreciation @ 10%
v. Mobile crane : annual depreciation @ 20%.
Perspective Planning:
In accordance with the Five Year Plan period, each factory shall formulate its Perspective
Plan for the next five years, on the basis of projections from users, in respect of end product
factories, and on the basis of Inter- Factory Demands, in respect of component
manufacturing factories. The Perspective Plan of the factory shall be in agreement with the
Perspective Plan of respective group of factories of OFB and in accordance with the
guidelines issued by OFB from time to time.
RR Plan and PFC approval:
(a) Based on Perspective Plan and need for modernization, each factory shall prepare its
annual Renewal and Replacement (RR) Plan as per the prescribed format. Plan Finalization
Committee (PFC) of Factory shall scrutinize the RR Plan, before forwarding its
recommendation to OFB. It shall consist of RR Demands for each P&M, along with related
documents. The same will be examined by the Plan Finalization Committee (PFC) of OFB
headed by the Concerned Operating Member/ Addl. DGOF in association with DDG/Engg.,
DDG/Operating Division and Controller of Finance/Addl. Controller of Finance. PFC/OFB will
examine the recommendations of PFC/Factory and accord approval of RR demands
(b) The P&M demanded under RR need not be on exact like-to-like basis and shall have
modern improved features and/or modified capacity to suit future requirements. The
following points should be kept in view, while finalizing the RR plan :
(i) List of P&M available with the factory, their original cost and procurement year.
(ii) Philosophy/concepts relating to investment for replacement.
(iii) Introduction of latest technology through RR scheme due to change in product mix
(iv) Sustained and futuristic requirement of users
(v) Outsourcing and cost benefit analysis
(vi) Up-gradation of technology
(vii) Improvement in productivity and quality
(viii) Saving in material and manpower cost
(ix) Flexibility
(c) Each demand under RR plan to be submitted to OFB for approval shall be accompanied
by the following documents/information :
(i) Budgetary quotation from potential suppliers/Last paid rate(not older than two years) of
similar/comparable machines procured by any ordnance factory.
(ii) Details of items to be produced, with annual capacity.
(iii) Time cycle for each component/end product after discussions with machine tool supplier.
(iv) Based on outturn quantity and time cycle, number of such machines required.
(v) Condemnation reports (CR) declaring machines ‘Beyond Economical Repair(BER)’.
(vi) Factory's TPC recommendation giving mode of tendering and prospective list of
suppliers.
(vii) Demand in the prescribed format duly vetted by LAO.
(viii) Cost benefit analysis, if cost of machine exceeds Rs.50 Lakh.
189
(ix) Specification drawn out after market survey should be enclosed in the RR demand at the
PFC stage. Tendered Specification shall not be at variance with PFC approved
specification.
(d) The factory shall submit the Annual Replacement Plan in Proforma A, B, C & D. ( given
in the Appendices.)
(i) Proforma A: It shall consist of realistic assessment of previous approved plans stating
inter-alia the cash flow materialised as well as cash flow envisaged in the subsequent years.
(ii) Proforma B: It shall contain P&Ms for replacement, with description, registration numbers
and estimated cost. It shall contain only those machines, which have been recommended as
BER by Technical Board of Examination and approved by GM.
(iii) Proforma C: Additional information in support of P&Ms projected in proforma B.
(iv) Proforma D: Budget allotment vis-a-vis utilization pattern for last three years against RR
grant
Note: After approval by PFC/OFB, changes by factories are not acceptable.
(e) Against approved RR plan of factory, GM is authorised for purchase of P&M within their
delegated financial powers. For purchase of machines(approved by PFC/OFB) beyond the
delegated powers of GM, factory will float Tender Enquiry and forward its TEC
recommendation to OFB. Based on TEC/OFB's approval, factory will open the price bids
and forward its TPC recommendation to OFB for approval of OFB/MOD, as the case may
be.
Procurement of P&M under New Capital:
a. Plant and Machineries under NC are procured under the following conditions(a) Against sanctioned project
(b) Normal NC to meet requirement towards –
(i) Creation of additional capacity to cater for sustained increase in production load
(ii) Creation of balancing capacities for new store
(iii) Meeting shortfall in the existing capacity
(iv) Meeting of statutory obligations,
(v) Improvement in existing production line in terms of Productivity, Reliability or Product
Quality,
(vi) Capacity augmentation for revised authorization, etc.
b. Since procurement under normal NC will enhance the capital assets, a thorough
assessment of existing capacity shall be made before such proposals are mooted.
Justification for such demands shall be supported by Statement of Case, clarifying the
necessity and inescapability of the equipment/Plant & Machinery in terms of increase in
productivity, enhancement of existing capacity due to increase in output demand,
improvement of quality in the existing process etc.
c. All NC demands in the prescribed format duly vetted by LAO will be forwarded to OFB,
keeping in view the points as mentioned for initiation of demands against Renewal &
Replacement. Such NC demands shall also have enclosures of documents as mentioned
under Renewal & Replacement procedure (except condemnation report) for clearance of
Operating Division from necessity angle and concurrence of Finance Division from
expenditure angle, prior to obtaining of approval of Member/Operating Division. On receipt
of OFB approval, factory shall follow the procedure of procurement.
190
SPECIAL PROVISIO0N ON STORE
Uninterrupted flow of material is the lifeline for any manufacturing industry. Indian Ordnance
Factories, engaged in production of military hardware, have the arduous task of ensuring on
time supply of military hardware required by Defence Forces for security of the country.
Inputs required for production of military hardware are of stringent specifications and are to
be made to order to fulfill the exacting standards of fail safe performance of the end product.
Further the requirement of inputs is wide and various. These being mostly governed by JSS
specifications do not have scope for use in other fields and there is no outlet for rejects.
Consequently, sources of input are limited and the market is seller driven.
Material that goes into making a product in Ordnance Factories accounts for 60% of the cost
of production. In addition, indirect material worth 5% of the cost of production is also used.
Making material available at the right time and cost is therefore a matter of paramount
importance. Further, stock out situation in the factory not only leads to discontinuity in
production rendering installed capacity idle but can also create industrial unrest. On the
other hand all canons of financial proprietary applicable to Govt. organization are to be
observed. The
Material Procurement Manual provides the guidelines for making inputs available avoiding
stock out situation in the factory. There may also be extraordinary situations that demand an
out of box solution to ensure vailability of material for continuity of production. In all such
cases, Material Managers must take procurement action in the best interests of the State
considering the possible wastage of resources in terms of idle capacity, less productivity,
time lost in changing production schedule etc.
PROCUREMENT:
Fundamental Principles of Public Buying: Every authority delegated with the financial
powers of procuring goods in public interest shall have the responsibility and accountability
to ensuring efficiency, economy, and transparency in matters relating to public procurement
and for fair and equitable treatment of suppliers and promotion of competition in public
procurement.
Annual Supply Plan will form the basis for procurement of direct material. Provision of
indirect materials that are not required directly for production will be made on the basis of
monthly average consumption during the preceding 24 months.
Procurement Lead Time: Procurement action may be initiated well in advance catering to
the lead time for procurement and production throughput time to ensure supply of end
product as per demand given by the indentor.
Determination of Requirement: Gross requirement of direct material will be worked out
based on product estimate and quantity to be produced during the year. Good dues and
stock will be subtracted from the gross requirement to work out net requirement for
procurement. If the end product is being phased out before next procurement cycle, WIP
should also be subtracted from the gross requirement.
Requirement of indirect material normally will be worked out based on average consumption
during past 24 months. The factors such as volume of production / usage of m/c etc. may
also be considered.
TYPES OF PROCUREMENT:
Indigenous Procurement: Procurement from indigenous sources is called indigenous
procurement. It is the policy of the Government to encourage indigenization, particularly in
the field of defence to achieve self-reliance. Hence, indigenous firms should be given all
support to produce and supply quality goods conforming to drawings / specifications.
Foreign Procurement (Import): For such defence equipments and assets, as are of foreign
origin, items required to maintain and operate these equipments may also need to be
procured from suppliers abroad.
191
Central Procurement: Central Procurement (CP) is undertaken by Central Procurement
Agency like DGS&D, OFB or OFB nominated Ordnance Factory against indents placed by
Ordnance Factories resulting from planned provisioning process. CP indents normally cover
the entire requirement of the item for the duration of the provisioning period
Local Procurement: Local Purchase (LP) is undertaken for the stores that are not within the
purview of Central procurement, within the LP powers of various authorities as per the
delegated powers.
Purchase of goods directly under Rate Contract: Goods for which OFB or Director General
of Supply & Disposal (DGS&D) has rate contracts can be procured directly from the
suppliers. While resorting to such procurement it should be ensured that the prices to be
paid for the goods do not exceed those stipulated in the rate contract and the other salient
terms and conditions of the purchase are in line with those specified in the rate contract.
Cash and Carry Procurement: Cash and carry purchase is a type of LP (local purchase)
resorted to in case of extreme urgency or when the supplier is not willing to supply the
required item on credit.
Time Limit for Procurement & Accountability: The effect of delay in processing and
clearance of various procurement activities needs no emphasis. The decentralization of
decision making mechanism and delegation of financial powers are aimed at facilitating
faster decision making and obtaining the best value for money. However, delegation of
powers also implies ‘authority with accountability’. Every individual in the chain of the
procurement process is accountable for taking action in a specified time period so that the
requirements of the Defence Departments are met on time
NORMAL TIME FRAME FOR THE FINALISATION OF THE CASE
LTE CASES
i) Cases falling with GMs
16-18 WEEKS
power
( TOTAL)
ii) Cases within OFB
19-21 WEEKS
Power:
24-26 WEEKS
iii) Cases within MOD
Power
OTE CASES
20-22 WEEKS
GTE CASES
22-24 WEEKS
22-24 WEEKS
27-29 WEEKS
24-26 WEEKS
29-31 WEEKS
192
CHAPTER -8
IFA SYSTEM
ORGANISATION, STRUCTURE & ROLE
An Overview
What is an IFA System?

Some Constitutional Facts
Executive Powers of Union vested in the President of India.
These Powers are exercised through Ministries/Departments.
The work distribution of a Ministry/Deptt. are governed by Allocation of
Business Rules.
All financial powers of the Union are vested in Ministry of Finance, Govt. of
India.
Delegation of Powers & IFA System











Delegation of Powers necessary for Administrative Efficiency and faster Decision
Making.
Finance Ministry has delegated financial powers to other Administrative
Ministries/Departments from time to time.
A large-scale delegation took place in 1975/76 consequent to Committee set for
Departmentalization of Accounts.
Along with the delegation, a scheme of Integrated Financial Advice was also
introduced in Ministries/Departments of Govt. of India.
The basic objective of the scheme was to make financial advice/inputs available to
the executive authority in-house for better decision-making with a view to economy,
efficiency and effectiveness.
As per the scheme, an Integrated Financial Advisor was attached with each
Ministry/Department of GOI.
Financial Advisor so appointed was made part and parcel of the Ministry who was
mandated to help the Secretary/Minister of the Department in all financial, budget,
accounting and audit related matters.
Financial Advisor was placed under the administrative control of the respective
ministry/department.
For the exercise of delegated financial powers, FA acts as Internal Financial Advisor
and concurs of all such proposals/ cases.
For cases beyond delegated powers, he provides inputs to Finance Ministry and thus
acts as a representative of Finance Ministry.
Because of the above features, the scheme has been called Integrated Financial
Advice (IFA) System.
IFA Scheme in Defence

IFA Scheme in Ministry of Defence was first launched in 1976 when Department of
Defence Production & Supplies and Defence Research & Development were brought
under the scheme.
 IFA system in the main ministry i.e. Department of Defence was I introduced in 1983.
 With this Ministry of Finance (Defence) became Ministry of Defence (Finance).
 Secretary (Defence Finance) or Financial Advisor (Defence Services) as the head of
Ministry of Defence (Fin) is the Integrated Financial Advisor of Ministry of Defence
IFA System in Services
 Arun Singh Committee on Defence Expenditure recommended
Wide scale delegation of financial powers to Services and
Introduction of IFA System in Services
 This was also the time when changes were introduced in the various Govt. Deptts.
Navy also took a cue from this and brought about a momentous change in the area
of its resource management called NMS in 1994. Basic features of NMS
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


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
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

It provides for greater de-centralisation of responsibilities for target setting, planning
budget formulation and financial control by involving lower level functionaries with
Accountability at every level.
Creation of Authority-cum-Responsibility and Budget centers under various PSOs in
the NHQ
Establishing clear relationship between financial inputs and outputs or physical
targets.
Better value for money in all exp. Programmes.
NMS also envisaged introduction of the system of IFA both in the NHQ as also in
some selected formations to advise them on various financial matters including the
exercise of their enhanced delegated financial powers.
IFA System was also established in Air HQ in 1994 under which an Integrated
Financial Advisor with a Deputy IF A was placed in Air HQ.
IFA (Army) and a Deputy IFA was also placed in Army HQ in 1994.
New Management Strategy for Ordnance and EME was implemented in 1997.
Role of IFA





To concur all proposals falling under the delegated powers at the necessity as well
as expenditure sanction stage.
To advise in the matters falling under the powers of MOD.
To participate in TPC/PNCs held by the various authorities in Service HQ. To assist
in budgetary matters including preparation of Committed Liability Data base.
To aid and assist in preparation of replies as regards to audit Para, draft Paras etc.
Any other duties given by FA (DS).
Further Developments




The next major push towards IFA system took place after Kargil war on the GOM
(Group of Ministers) recommendations in 2002.
With this IFA system has been implemented at Command Level and each command
HQ has been provided with a dedicated IFA and Deputy IFAs.
A large-scale delegation of powers to executives at all levels under MOD letter dated
22 April 2002.
In future, dedicated IFAs to be provided at Corps and Div levels and also at CODs.
Organization Structure of IFA system in Army








Principle IFA in Delhi to coordinate and handle all IFA related issues.
IFA (Army/Ord), IFA (Army/Q and IFA (Army/Misc.) in the Army HQs.
IFA at each of six commands.
IFAs are Joint Secretary Level officers.
IFAs are provided with the assistance of one Joint IFAs and two Deputy IFAs.
Under the concept of decentralised powers IFA forms part of the management in the
decision making process.
Therefore, IFA should not be considered as a person to create impediments or
outsider.
The IFA scheme is an aid to the management and is intended for their benefit and
achieves the common objective.
1. INTEGRATED FINANCIAL ADVICE (IFA) SYSTEM
The concept of IFA was introduced in the Ministries of Government of India in the wake of
the decision on departmentalization of accounts in 1976.
2.AIM:
To expedite decision-making and to ensure that all expenditure proposals are subjected to
due financial scrutiny before the expenditure is sanctioned or committed.
3.Why is an Integrated Financial Adviser necessary in Armor HQrs?
(i)
(ii)
Over view of all expenditure proposals which ensures optimum utilization of
funds.
Ability to take independent view unaffected by hierarchy of Service HQ
194
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Functional Accountability to Secretary Defence (Finance)
Administrative Control of DCOAS (P&S)
ACR written by DCOAS
Review by Secretary Defence (Finance)
Years of experience in all aspects of Financial Management
Accounting, Audit, Budgeting and Financial Advice
4.1FA System in Service HQrs
Based on the recommendation of a Sub Committee on Defence Expenditure, Ministry of
Defence decided in November 1991, that exercise of delegated financial powers should be
with the advice of IFAs. Accordingly, IFAs have been positioned in Service Headquarters
and Headquarters DGBR vide the following Government Orders:
a) MOD F No. 665/ADDL FA (C) Dated 22.3.94
- IFA NAVAL HQ
b) MOD F No, 840/ADDL FA (C) Dated 4.4.94 - IFA AIR HQ
c) MOD, F No. AN-1 /11791 /1 N1 (PC-/XXV) - IFA ARMY HQ Dated 17.8.94
d) BRDB No. F 731/ (18) BRDB/BWA/
- IFA DGBR
94-Delegation dated 23.3.95
MOD No. Air HQ/61279/35/4/L1215/
- IFA HQ
DO-II/D (AIR-1) Dated 26.9.95
Maintenance Command,
IAF
5.
Role and Functions of IFA in Army HQrs
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
The duties of IFA as stipulated in the Ministry of Defence (Finance) letter No.
AN/1/1 1791/l/Vl (PC-XXV) dated 17.8.94 is as under:
He/She shall be the Integrated Financial Adviser at Army Headquarters.
He/She shall render advice on financial matters, which fall within the
competence of various authorities at Army Headquarters within the delegated
financial powers as and when sought for. Such authorities will, however,
continue to exercise these powers independently as hitherto fore.
He/She will vet proposals falling within the enhanced financial powers as and
when sanctioned.
He/She may render advice and assist in cases of all proposals/ cases
requiring government sanction if called upon.
He/She or his/her representative will participate in various TPCs/PNCs at
Army Headquarters.
He/She will monitor the processing of draft Audit Paras, internal Audit
objections etc. concerning the Army to ensure adequate attention and speedy
remedial measures. For this purpose, he/she will maintain close liaison with
Regional Controllers of Defence Accounts, CGDA, DGADS and Ministry of
Defence.
He/She will assist in preparing and monitoring a database on committed
liabilities.
Any other duties relating to Finance/Accounts as assigned to him/her by the
DCOAS (P&S) and Secretary Defence (Finance).
In case of difference of opinion between IFA and PSOs and DCOAS (P&S),
the matter may be referred to Secretary Defence (Finance).
6. The following items of work were specifically mentioned in a subsequent
note of Ministry of Defence (Finance) bearing ID No. 2780/Addl. FA (J)/QB/94
dated 7.14.94:
(i)
(ii)
(iii)
(iv)
Participate in TPCs / PNCs held at Army Headquarters (ST Branch) for
finalization of procurement of tubes and greases, hygiene chemicals etc.
Conclusion of STAs for procurement of fodder by DDGMF.
Conclusion of Meat Group contracts falling within delegated powers of QMG.
Regularization of losses under the delegated powers of various authorities in
QMG Branch/ Army Headquarters.
7. In the Financial Management Strategy for MGO's Branch, the role of IFA
has been defined asunder:
195
(i)
(ii)
(iii)
(iv)
(v)
8.
The IFA (Army HQ), set up vide MOD (Fin) letter dated 17.8.94; will also
function as IFA for MGO Branch including DGOS and DGEME.
He/She- shall render advice on all financial matters pertaining to these
functionaries.
In all matters %within delegated powers of MGO, DGOS, DGEME, and the
IFA is to be consulted in respect of all cases of specific expenditure proposals
and these powers will be exercised with his/her consultation.
To enable the IFA to discharge his/her role of rendering financial advice
effectively within the delegated financial powers, all the concerned
papers/case files relevant to the case as also the relevant papers in regard to
tenders; original quotations, comparative statements of tenders etc. will be
made available to the IFA or his/her representative as and when required for
rendering such financial advice through TPCs or otherwise.
IFA will also be fully associated with the post-contract stage developments
such as granting of extension of time, levy, recovery/waiver of liquidated
damages and risk purchase etc.
Organization of IFA
The IFA Cell was originally sanctioned vide MOD (Fin) letter No. AN/1/1179/VI (PC- XXV)
dated 17.8.94 with the following complement:
(i)
One IFA
to be manned by an officer of Senior Administrative Grade of the IDAS
(ii)
One Deputy I FA
to be manned by a Time Scale
Officer of the IDAS
(iii)
Two Junior Officers to be manned by Assistant Accounts
Officers of the Defence Accounts
Department
With the increase in workload, a second IFA was positioned in Army Headquarters in
April'99. The number of Dy. IFAs has been increased to three and Junior Officers to four.
Two Senior Accounts Officers of the Defence: Accounts Department has also been posted
in addition to the above.
9. The distribution of work between the two IFAs is as follows:
I.
IFA (Army-O)
All matters pertaining to Ordnance and EME Stores
II.
IFA (Army-Q/Misc.)
(a)
(b)
(c)
(d)
(e)
(g)
QMG Branch and other Directorates under it, including Works and ASC, Military
Farms
VCOAS relating to M1/S1
DCOAS (T&C) and Directorates under him including MT
Signals Directorate
AG's Branch relating to time barred cases and regularization of losses ' (f) DGAFMS
DCOAS (P&S) and ADG (Systems) relating to IT funds.
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CHAPTER - 9
COMPUTERISATION IN DAD
What is a Computer?
The word “Computer” comes from the word “Compute” which means to
calculate. A computer is an electronic device, which stores and processes data
to give meaningful information. Processing is done with the help of
instructions given by the user, which are also stored within the computer.
Data refers to all the basic elements that can be produced or processed by a
computer.
Data is a collection of facts and figures, which has to be processed by some
processing system, (whether a human being or a machine) to be
understandable.
Information: It is the processed form of data, which makes some sense and
helps in reaching a conclusion.
Department to stream line the day to day function and to achieve speed &
efficiency different projects have developed & implemented. The brief details
is as follows
“Aashraya” and “Suvigya”
Defence Accounts Department is responsible for sanction and disbursement of Defence
Pension to retired Service Officers, JCOs and ORs, Defence Civilians and their families.
Efficient Disbursement of Pension to the Defence Pensioners is of primmest concern to the
Defence Accounts Department. The Defence Pension budget constitutes approximately
62% of total pension budget of Central Govt. Pension is sanctioned to approximately one lac
retirees each year by three Pension Sanctioning Authorities of the Department and is
disbursed monthly to approximately 23.5 Lacs pensioners out of which nearly 5 Lacs receive
their pension through 61 Defence Pension Disbursement Offices (DPDOs) spread across
the country. With increased life expectancy and a dependency ratio of over 100% for
defence pension it is imperative to ensure that correct pension is paid to the pensioners as
the quantum of pension and its regularity impacts over 2 million defence personnel.
Given the huge amount of expenditure incurred by the Govt. towards its pension liability and
a large no. of people being its beneficiaries, it is absolutely necessary to have a pensioner
friendly, efficient and a transparent Pension Disbursement System and Pension Enquiry
System. Accordingly the project “Aashraya: Pension Disbursement System” and “Suvigya:
Pension Enquiry System” were launched in Jun-2010. These were developed and
inaugurated by Hon’ble Raksha Mantri on DAD Day i.e. Oct 1, 2010.
Aashraya
The Defence Pension Disbursement offices were running on COBOL Based Pension
Disbursement System called RNPDS. This was an outdated system with very limited utility
and required programming skills for its operations for every transaction. Hence, it was not
user friendly and required COBOL programming skills for operation. It had a limited facility to
generate Pension Schedule of Pensioners. There was no role based operation. The MIS
generation and audit was not possible. The Staff and officer of the DPDO were dependent
197
on the programmers of the COBOL to operate it for settling any grievance. With change in
pension entitlements like Dearness Relief, Allowances etc the payment of correct
entitlements and arrears were a tedious job.
In view of above situation, the Defence Accounts Department conceived the idea of making
an efficient Pension Disbursement System (i.e. Project “Aashraya”) for making the correct
payment of pension and addressing grievances of the pensioners while automating the most
of the manual work of DPDOs. Accordingly the Project “Aashraya” was initiated. This
software was developed by using open source platform i.e. PHP/ MySQL and runs on
Linux/Windows etc. It has been designed, developed and implemented by in-house team of
officers without third party assistance and expenditure on this account. It has following
salient features:

Transparency and stakeholder participation: “Aashraya” software is very user
friendly with role based authentications. Pensioner’s profile module in the system
enables DPDO staff to view the complete profile of a pensioner by entering the ID of
pensioner and payment history for the purpose of redressal of grievances. In earlier
system the information could only fetched by writing COBOL program on every case
and was dependent on availability of one technical person in DPDO office. Now,
“Aashraya” has made available the pensioner’s information with every staff and
officer of DPDO for faster redressal of grievances if any or otherwise with least
manual effort.

Innovativeness of the initiative and its replicability: ‘Aashraya’ has automated
the disbursement of pension to 5 lac pensioners from 61 Defence Pension
Disbursement (DPDO) offices across the country. It can be customised for the use of
any pension disbursement agency (Post office, civil treasury, bank etc.)
The Software is:
o
Intuitive, normal office staff without much computer knowledge can work on it.
o
Web-enabled, can be run at dispersed locations across the country.
o
Inexpensive, based on freeware platforms and developed in-house and
needs minimal outstation resources.
o
Comprehensive, covers all main activities of a pension disbursement office
and
o

Green saves lot of printing effort and paper.
A modified PDCA (plan-do-check-act) iterative cycle was used at all stages for the
development. The difference was that the users (Non-EDP taskholders/supervisors)
themselves were the problem-solvers, equal participants in the cycle. They
concurrently did the data input and suggested further screen improvements that the
programmers readily implemented. By the time the system was fully evolved, the
users developed an ownership stake and their enthusiastic participation led to an
implementation momentum that crashed all timelines. The result is there for all to
see.

Increased efficiency of outputs/processes and effectiveness of outcomes: This
software has increased many folds the working efficiency of DPDOs staff as working
on new system is very user friendly and faster. The process which took many hours
now takes few minutes to finish.
I.
Web Enabled User Friendly Operations: “Aashraya” is web enabled
software with user friendly interface screens and navigation. Any non198
technical person in DPDO can easily operate it. The operations of DPDO like
generation of Pension Payment Schedule of Pensioners, MIS, Common
reports and returns etc could be generated on click of button without
programming knowledge
II.
In-Built Help: There is in-built help for operation of every screen. There is no
need for officers and staff to wait and depend on the COBOL programmer to
process any transaction.
III.
Pensioners’ Profile: the module “Pensioners’ Profile” gives information
regarding pensioners, pension related matters and entitlements being paid.
These can be fetched easily by staff and officers of DPDO for attending the
grievances and its quick settlement. This has resolved the problem of earlier
system where it was not feasible for staff and officers to do so.
IV.
Role Based Operations: In “Aashraya” the functioning of DPDO has been
made role based for various tasks and ranks as per procedures. This has
induced accountability for various tasks at various ranks. Respective
operators of “Aashraya” can print the record of the transactions done by
them. The administrator can track the person carrying out the transaction.
This has resolved the problem of single point data entry and operations by
the COBOL programmer on behalf of other staff in earlier COBOL based
system. The staff had responsibility without record and direct access to what
had been done on their behalf.
V.
In-Built Audit Checks: Common Audit Checks have been built into
“Aashraya” to ensure accurate data entry and output results. These checks
were not there in old system generally leading to output with lesser accuracy.
Further, the manual checking of payment schedule as audit requirement in
earlier system was time consuming. The “Aashraya” automatically compares
the schedules of desired months.
VI.
History of payments: “Aashraya” has facility to maintain the history of
pension disbursement for longer periods to facilitate quick payment of arrears
in the event of change of entitlements by Government and for settlement of a
grievance etc. The earlier system could maintain the history of payments of
pension only up to 15 months and calculation of arrears in case of change of
entitlements etc was tedious manual task.
VII.
Monthly Pension Slip to Pensioners through E-MAIL and SMS:
“Aashraya” contains the facility for sending monthly pension slip of the
pensioners to their e-mail and also on their mobile through SMS. The DPDO
has to just press the button once for it.
In nut-shell, the “Aashraya” has automated the operations in DPDOs in a user friendly
manner, ensured accuracy by audit checks, minimised grievances and quicken the
settlement of existing grievances thereby enhancing the overall efficiency of DPDOs.

Date of implementation of the initiative:
199
This project was formally inaugurated by Hon’ble Raksha Mantri Sh. A K Antony on
DAD Day on Oct 1, 2010 and the completely implemented by March 2011 in 61
DPDOs. Now it is running in all 63 DPDOs.
Suvigya
Armed Forces Personnel generally retire at an early age. The pension structure
compensates them for early retirement and also for acts of bravery, strain of active service
and so, is very different from civil pension system. Pay Commissions and other Authorities
constantly keep improving their entitlements. Hence, Defence Service Pensions are far more
complex. At present, pension is being disbursed to pensioners by Defence Pension
Disbursement Offices, banks, State Government Treasuries and Post Offices. They also
carry out table based pension revision. While the DPDO understands the technicalities of
pension, being part of DAD, other agencies, especially bank branches have limitations. Our
experience at the Pension Adalats has been that most of the issues in pension arise at the
bank level.
In this back drop project SUVIGYA is a total in-house designed and developed Pension
enquiry System, was taken up in July, 2010 with a view to empower the pensioners to know
what their correct entitlement of pension is from time to time. It is a web-technique based
system. The system requires very few basic inputs from the pensioner. Once data is entered
software calculates the pension and changes to it from time to time. Pensioner can get a
print out of inputs provided by him and of the outputs generated by the system. If a
pensioner finds his/her pension actually paid or being paid is less then the results given by
the system, he/she can take up the matter with the Pension Sanctioning Authority or
Pension
Disbursing
Agencies
for
rectification.
To the best of our knowledge, no other Government department has so far established
such a comprehensive and interactive Pension Enquiry System. We have provided e-kiosks
at various DAD and Service secured locations accessible to the pensioners. For computershy pensioners, we have trained the concerned officials of DAD, Zila Sainik Boards and
other offices where e-kiosks have been provided.
“Project Dolphin”
Pay and allowances of Personnel Below Officer Rank (PBOR) of the Indian Army including
JCOs holding Honorary Commissioned Ranks are maintained Corps/Regiment-wise on
Individual Running Ledger Account (IRLA) System in 44 Pay and Accounts Offices(PAOs) of
Defence Accounts Department spread across the country. These PAOs maintain about 14
lacs accounts of the serving PBOR, in addition to approximately 4 lacs accounts of retired
PBOR.
The existing procedure of the maintenance of the Pay Accounts of PBOR on IRLA System
started way back in 1946 taking into account unique service conditions of the Army
Personnel. The Indian Army is very mobile in nature and its units can be asked to move at a
short notice from one place to another. The units can be deployed in different types of
locations ranging from peace, modified field or field to regular, high altitude or remote
localities. Different types of locations entitle Army Personnel to different type of allowances.
The mobility of the units may result in part of month being spent in one type of location and
balance in a different type of location. Such unique service conditions rule out the monthly
pay bill system as followed in case of civilian government employees. The salient features of
the IRLA system and the improvements made therein are explained below.
200
The individual pay accounts are maintained by PAOs right from enrolment till cessation of
service. This ensures that the account remains static in one office despite all the transfers/
movements of the Army personnel. Various changes to his entitlements are notified by
Record Office and Unit, where he is serving, by Daily Part II orders which are sent to the
PAO for incorporating the financial effect in the accounts. The individual is paid monthly by
the Unit and such payments are treated as advances and communicated to the PAO for
incorporation in the accounts. Similarly, other recoveries like loans, insurance policies,
water/ electricity charges etc. are communicated to the PAO.
Traditionally, the individual accounts (IRLAs) were maintained manually and closed once in
a quarter after giving effect to the various changes in entitlements, advances drawn, loans/
recoveries and contributions to provident fund, group insurance etc. After such closing, the
Quarterly Statement of Account for every Army Personnel was prepared to indicate his
entitlements and other credits, drawls/recoveries and the closing balance. These statements
were sent to the Unit of the concerned personnel to apprise him of the status of his account.
In order to improve the quality, efficiency and accuracy of accounts, the pay accounting
work in PAOs was computerized in 1980s using COBOL/Unix platform. The processing of
inputs was done in batch processing mode and cleaned inputs of the quarter were used for
closing and generation of Statements of Accounts.
Despite the major improvements made in the pay accounting system of Army personnel,
there were limitations. The processing was in batches and the final acceptance or rejection
of the inputs became known only at the time of quarterly closing of accounts and the
corrective action could be taken only in the following quarter. Army personnel had to draw
their approximate entitlements as advances on pre-determined days and the system did not
make use of the current facilities available in the banking sector in the country. The
disbursements made to Army personnel were booked to the relevant expenditure heads of
Government accounts only after quarterly closing of accounts. Till the closing of accounts,
such disbursements continued to remain outstanding under suspense heads.
In the quarterly closing of pay accounts of Army Personnel, the position of non-adjustment
or incorrect adjustment of credits/debits could be known at the end of quarter only. Similarly,
action to rectify such non-adjustment or incorrect adjustment was possible in the
subsequent quarter(s). This delay led to grievances and complaints. The desire to overcome
the above and to correct them at the earliest was a major motivating factor.
The aspirations and expectations of the Army personnel to draw their net monthly
entitlement through their bank account (instead of cash) and to make use of banking
facilities like ATM cards etc. were not adequately met in the system. The vision to meet
these expectations was a major motivating factor.
From accounting perspective, the system reflected the booking of expenditure only once in a
quarter and substantial amounts continued to be reflected under suspense heads. The
desire to correct this position was also a motivating factor. Two projects namely “Samarth”
and “Dolphin” have been developed as briefed below:
Project Dolphin
Project ‘Dolphin’ is an effort to shift the existing COBOL based system to more current
RDBMS based on-line system. The project has been developed using open source software
i.e. Java/PostgreSQL and runs on Linux environment.
This project is under implementation stage in PAOs. PAOs are now able to credit pay and
allowances of PBORs on monthly basis. Like PAO (ASC) Bangalore display the statements
of accounts of PBORs (both monthly and quarterly) on their respective websites. PBORs
and units have login facility to see their statements of accounts, lodge grievance online and
201
view reply online. PAO (ASC) South, Bangalore has already launched its website and
started displaying the monthly and quarterly statement of accounts on website. The other
PAOs will be gradually shifted from quarterly to monthly payment to PBORs. PAOs will also
launch their websites for login based display of accounts of PBORs on their websites.
Date of implementation of the initiative: The development of the project has been
successfully completed in July, 2010. Implementation began in two PAOs in parallel mode in
August, 2010. Processing of accounts has been completely switched over to ‘Dolphin’ from
COBOL system since September, 2010 and it was further rolled out to another 12 PAOs
since
then.
Salient features of Dolphin are:

Dolphin is an online system and hence delivers immediate feedback. As soon as a
DO II is fed into the system, the calculation is done by the system immediately unlike
earlier COBOL based system where the result was known at the time of quarterly
closing. Therefore the rejections can be intimated to the units immediately for
rectification.

Validation checks incorporated in the system ensures that only accurate data is
being fed into the system.

In the COBOL based system, the data was accessible only to the EDP staff making it
difficult for the PAO staff to settle any grievance/complaint on real time basis.
‘Dolphin ‘has made data available to all the staff of PAO thereby greatly reducing the
complaint redressal time.

Dolphin has facility to import soft copy of DO II data generated by Record Office/Unit
resulting in elimination of data entry work.

The project facilitates to provide monthly entitlement information to the soldiers. This
helps them to lodge complaint/grievance if any with the PAO unlike the earlier

system where the soldier gets the statement of account only after quarterly closing.
The system establishes the authority and accountability. The task functions have
been defined. The system keeps track of all the actions performed by the task
holder/supervisory staff, also recording date & time of the same.
AO (GE) Module Project “VISHWAK”
Project Vishwak has been developed for automation of the AO GE Offices under the
jurisdiction of various Pr. Controllers’ / Controllers’ offices. Earlier to this, there was no
automation in these offices and work was completely manual.
This system enables these offices to capture the Admin Approval, Technical Sanctions,
Contract Agreement details and processing of payments viz. RARs, Final Bills, Hand
Receipts through the system and preparing monthly Punching Medium at a click of button.
As the database is available in the system, manual registers for Admin Approvals, Technical
Sanctions & Contract Agreements can be phased out.
Project “NIDHI” Fund (Main) System.
About 2.3 lacs GPF accounts is being maintained by the CDA (Funds) Meerut. Accurate and
efficient fund maintenance and management is a herculean task. Project Nidhi has made
the maintenance of fund accounts more secure and instantly available to all the subscribers.
It has brought in transparency and accuracy while minimizing the grievances at all stages.
Data received in this system can be accurately watched and monitored at any stage as it
202
automatically compares the data inflow vis-à-vis compilation. Apart from obviating
unnecessary data entry every month this system enables review as well generation of
overview/progress report instantaneously.
Running on WAN it can be accessed by the authorized user from any location for data
submission as well as reports generation. Being customer friendly this project is now running
successfully in 15 DDPs where fund subscription is captured electronically even in remote
areas of Jammu and Kashmir, North East India and Portblair. Data Entry (duly validated and
review) carried out at DDP Controllers and onward transmitted for reconciliation of Data with
other DDP Controllers and preparation of Annual GP Fund Statement. Data Entry is being
Cheked through system also in a manner “Data Entry will be carried out against compiled
actuals” and possibility of over booking will be eradicated.
This system has also been implemented in the PCDA, New Delhi and PCDA (R&D) New
Delhi offices for total processing. The software has also been provided to the PCDA (Navy)
Mumbai and PCoA (Fys) for exploring the feasibility for implementation of the system.
Project Bhawan.
Project Bhawan deals with the work of AAO BSO Offices. It caters for maintaining the
masters of Permanent/Temporary Defence Buildings, Occupation & Vacation Reports
thereof, generation of Rent Bill & Allied charges for Officers, ORs, Third Parties etc.
Softcopy of rent bills in r/o Army Officers is being generated by Project Bhawan and used by
PCDA(O). Provision is also being made to generate softcopy data of Rent Bills & Allied
charges in respect of Air Force Officers and ORs. Uploading of soft copy data will avoid data
entry at various stages and speed up the process of adjusting Rent bills & Allied charges.
Project SUGAM.
Office Automation System for Regional Controllers� Offices on PHP/MySQL platform.
SUGAM is common software, achieving in uniformity in working of these offices.
Sugam provides features from diarisation of bills to processing and making payment to the
concerned. Sugam caters for Third party bills, Personnel claims, Paybills, e-payments etc.
New features available in Sugam(as compared to previous VFP version) are - Provision of
sending Monthly Expenditure Reports(MER)/Chequeslip/Payslips through e-mail and many
more.
LEGACY PACKAGES FOR ACCOUNTS OFFICE
ATTACHED TO DIFFERENT FACTORY
INSTALATION PROCEDURE FOR WAGESYS
The installation procedure is described below. Windows95 or higher Version is required to
install the package from the CD.
Insert the CD in Your CD-ROM drive and wait. The Installation Shield will run
automatically and the welcome screen will appear as shown below.
203
Click continue
If your computer running Microsoft Office Shortcut Bar the system will advise
to Close The Office Shortcut Bar and re-run the setup again but you can ignore
the advice and press OK button for the Next Step.
Click OK
The system will show your computer Name and Organisation.
204
Accept the Default Name & Organization , click OK .
A Confirmation Screen will appear as shown below of the above information
Click OK for next step.
The next screen will show where the package will install, WAGEVFP is the default
directory, if you want to change, click Change Folder, The system will gide you to Change
the directory where your package will install.
205
Click OK for defalult setting , Click Change Folder to create your installation Folder.
Select the Wagesys Icon from Your Wagesys installed directory
206
Click Open for next
step.
Click Next button.
Type the Title of the Shortcut Icon or you can accept the default Title as Wagesys.
Click Finish.
A shortcut icon of Wagesys will appear in the desktop.
207
To activate the Icon & run the package, select the Icon and double click the Icon .
If you Click the Change Folder the following screen will appear. Type the name of
directory in the path box preceded by the drive letter plus colon plus back slash as shown
in the path box.
Click OK for next step.
If the destination folder not found the system will ask your confirmation for creating the
destination/wage directory.
208
Click Yes for next step.
209
Click OK for next
step.
Click the Big Icon.
The system will install all the required files in your computer and WAGESYS screen will
Appear.
How to Start WAGESYS system : 2.1.1 Once you have successfully installed your system you return to your desktop. An
icon WAGESYS will be found. Double click on the icon.
2.2
WAGESYS START UP WINDOW will be seen on Foxpro System Window.
210
2.3
Please maximise the Foxpro System
Window by clicking on the
 (maximise)
button on the right most corner.
2.4
2.5
WAGESYS System will provide you an option for selection between there pages :
(i)
Regular Wage
(ii)
Arrear Payment
(iii)
PLB Payment.
Navigation between the pages can be made
by
clicking on the button <
Next Page >, < Prev Page >.
2.6
To come out of the WAGESYS System click on < Exit >.
2.7
Let we now first discuss about preparation of monthly Wageroll.
2.8
Click on the button < Proceed >.
2.9
The Screen log-in [Regular Wage] will appear.
2.10 Select the Name from the pop up by clicking on the
the present case select Bidhan.
211

button in user name. For
2.11
2.12
2.13
Cursor will blink on the Password. Type “ao” for the present case.
Now click on the button < OK >.
If without entering into the system you want to come back click on < Cancel >
button. You will be returned to previous window i.e. starting window.
Monthly Wage Calculation : Before coming to this system Wage Package has been implemented in all the Accounts
Offices in Foxpro 2.6.
As such for implementation of the Visual Foxpro Version of Wage Package we need not
create new master but we need some facility to transform data from already created master
to this new container of VFP.
Click
on
<
Help
>
on
the
menu
pad
of
Wage
Sys.
4.1
4.2
4.3
4.4
Screen as shown will appear.
Sixth Grid indicates < Data Import from Fox 2.x >.
Click on this grid.
The screen will appear. Please type the name of the file to input. This will take data
from . dbf to the same named table of . dbc . If the process is repeated without
zapping the system will automatically zap the table and append the present table.
This ensures that data will not be unnecessarily duplicated.
212
4.5
4.6
5.1
Subsequently addition and alteration in the table may please be carried out using the
package as described later in this chapter.
So the Master files like IEMASTER, IEHIST, CODEFL, LEAVMAST, FDMASTER,
WARRANT may be linked to the . dbc by copying the data in the oldwage / data
directory and following the process explained in 4.4 to 4.6 above, deduction and
even attendance, leave etc. The tables may also be exported into newwage / data
directory (if necessary ).
In case of Cardtrns, files are received from factory management; the same data can
be used in running the package by following the procedure mentioned in 4.7 x 4.4
to 4.6.
The first option in the menu pad is for data Entry. Data Entry may be related to any of
the following :
IEMASTER
ATTENDANCE
CARDS
MISC EARNINGS
DEDUCTION RELATED
GANG DETAILS
HASH ATTENDANCES
PUNCHING MEDIUM
DEDUCTION EXEMPTION
PARA BONUS (FOR OPP ONLY).
5.2
Let us now first take up the case of data entry related to IEMASTER.
Click on the grid < IEMASTER RELATED >.
Following options will appear.
Periodical Increment Certificate
Joining details
Retd/Death/Tr. Out details
Promotion details
Penalty details
Suspension details
213
Intersection Trans. Details
1.1
Starting VFP Inventory Package
i
After booting the system change to the drive and directory in which Inventory
Accounting Package is installed.
ii
Double Click on the Invsys.exe. The screen 1 will appear
Screen 1
iii
In the middle of the screen 1 will appear 'Please Enter User ID’. You can enter your
user ID. At present the user ID is ‘ACCTS’. If the user ID is entered correctly you will be prompted to
enter the password. At present the password is ‘AO’. Facility is given in the Utility Pad of the Main
Menu to change the user ID and password. If the password entered is correct the Main Menu as
shown in screen 2 will appear.
214
Screen 21.2
Navigating through the Menu
i
By default the cursor will be on the Master Menu page.
ii
To move from one menu to another click on the option or press the hot key
iii.
the hot key
iv.
1.3
To select any option given under the selected menu click on the option or use
To exit out of the Inventory package click exit
General Instructions.
i
Data from the Inventory package 2.6 can be added to the new package by selecting
the option ‘Convert file from old package’ from the Utility menu. Re-indexing of the
files also can be done in this menu. Select the REINDEXING option for re-indexing
the files.
ii
Factory details like Factory code , Factory Name and Accounts Office Name are
to be entered through FACTORY DETAILS option of UTILITY menu.
iii
The UTILITY menu of the Main Menu also provides for the viewing and printing
of various reports generated during the processing of Inventory Package For
viewing , select 'VIEWING OUTPUT FILES' option in UTILITY menu. A popup
showing the list of report files (Report_name.txt) will appear on the screen. Use
the Up/Down Arrow keys for selecting the desired reports and then press
<Enter> to view the report. Press <Escape> key to return back to the popup from
where you can view other reports by following the same procedure. When
the report viewing is complete, press <Escape> key again to return to UTILITY
menu.
For printing, select 'PRINTING OUTPUT FILES' option in UTILITY and thereafter
follow the procedure indicated for viewing the reports above.
215
iv
Facility for modification of the Password is given in the UTILITY MENU. The
ITEMMASTER update Password can be modified by clicking ITEM PASSWORD
MODIFICATION option. On selection of this option The INVSYS has provided
‘Unzip’ as initial ITEMMASTER update Password. Similarly, modifications of the
Passwords for Modification and Deletion of Supply Order can be done through
the option [MODIFY] SO PASSWORD MODIFICATION. The INVSYS has provided
‘SO’ as initial Password for Supply Order Modification and ‘SOD’ as initial
Password for Supply Order Deletion .
v.
The system facilitate processing in the directory named INVENTORY. INVENTORY
directory should be created at the time of installation of the Package. Two sub
directories viz. LIB and BACKUPS should also be created at the time of installation
of the package. However, system also provides an option 'CHANGE DEFAULT
DIRECTORY' under ‘UTILITY’ Pad of the Main Menu. Selection of the option will
switch the user to the directory entered by him and further processing will be
carried out in the selected directory till the user exits from the system or
selects an alternative directory. However, it is essential that the INVENTORY
directory with its LIB sub-directory containing the structure files are available on
the drive in which the alternative directory exists.
vi.
All Date Fields are to be entered in format dd/ mm /yyyy.
vii.
Popups are provided in some data entry screens as a help for selecting data
items. To activate popup wherever provided press <F2> key. The list of
data items to be selected is displayed on the screen. Use Up Arrow or Down
Arrow Keys for selecting appropriate data item and press <Enter>.
viii.
INVSYS is a simple menu driven package.
package with the help of Mouse click
SUPPLY ORDER MODULE
2.0
2.1
You can navigate through the the
Maintenance of Vendor Master.
i
Click VENDOR MASTER option in MASTER MENU of Main Menu.
ii
On selection of the above option the following screen will appear
Screen 3
216
iii.
The screen prompt you to enter the vendor code. Blank entry will exit from the
Vendor master maintenance option. On entry of a new vendor code a screen as shown in
the Screen 4 will appear.
Screen 4
New vendor details as shown in the figure can be entered. On completion of the entry the
cursor will be position on the “ADD” option. By pressing the Enter key or Clicking the mouse
on ADD option the record will be saved in the Vendor Master file.
On entry of existing vendor code the following screen will appear.
Screen 5
v.
The options such as “DELETE” , “FIND”, “NEXT”, “PREV”, “SAVE” are available on the
Screen as shown in the Screen 5
“DELETE”
“FIND”
“NEXT”
“PREV”
“SAVE”
Delete the existing record.
Display an existing record and modify the record
Display the next record after finding a record
Display the previous record after finding a record.
Save the modified data
217

2.2
Maintenance of Supply Order Master .
i.
Select SUPPLY ORDER MASTER option in MASTER MENU of main menu.
ii.
On selection of the above option a sub-menu similar to Screen 6 with
ADD,MODIFY,
DELETE, INQUIRE, and EXIT option will be activated.
Screen 6
iii.
Click on the appropriate option for action as given below.
ADD
for adding new Supply Orders
MODIFY
for editing existing Supply Orders
DELETE for deleting existing Supply Orders
INQUIRE
for querying on Supply Orders
EXIT
for exiting from sub-menu.
On selection of add option Screen 7 will
appear
218
Screen 7
iv.
The control of Addition of Supply Orders in the ADD Option is primarily on the
Supply Order Number. The System accepts the Supply Order Number and
confirms whether it exists in the Supply Order Master file. If the SONO entered
is already available, the
system will prompt the user 'WANT TO ADD
AN ENTRY IN EXISTING SO (Y/ N)?'. Where additional items are required to
be entered in respect of a Supply Order, Click on 'YES' and thereafter, data can
be entered into the screen provided. The SO value of the items already existing
in a Supply Order are cumulated and displayed on the screen. After addition of
items the system will ask for SO value. The computed value for the SO will
therefore be the value of the existing items plus the value of the new items
added. Remember the Manual Supply Order Value to be entered will be total
value minus transportation value if any.
INTRODUCTION ON COSTING PKG
INTRODUCTION
The ‘Cost Accounting System in Ordnance Factories’ was initially developed in FOXPRO 2.6
Version in MS-DOS platform. This package is well known as ‘Costing Package’. This has
been developed by the Costing Nodal team of CFA(Fys) of Avadi Group. The system was
initially conceived on on-line concept; but later it was modified to batch processing like other
2 packages. The Nodal team has taken the various requirements of our BAO’s and
suggestions given by various Group Controllers and incorporated in the system. Now this
package has been re-developed in Visual FoxPro, which is more advantageous than FoxPro
in DOS.
2. This package developed exclusively for Factory Accounts mainly aims at the
accomplishment of the following tasks.
a. Estimate pricing.
b. Maintaining of Cost card details.
c. Posting of monthly expenditure onto the cost cards.
d. Closing the cost cards with variance analysis.
e. Pricing of Semi, COP and WIP.
3. The primary documents/data for the maintenance of this package are enlisted below.
a. Estimates (Main, Material and Manufacturing)
b. Warrants including closure of warrants
c. Abstracts viz. Labour, Material, Component, PPL, Transfer Voucher and
Allocation.
d. Inspection Notes, Red Demand notes.
e. Levy percentages (DA/FOH/VOH).
f. Semi Statements.
Unlike the other two packages, the ‘Costing package’ receives the data from Wage Roll
package and Inventory package and is dependent on these two packages.
NOTE: In the DOS version of the Costing Package, the menu ‘CREATION’ had existed
which is meant for initial creation of masters of costing package which might needed when
we were to switch over from manual system to computerized system. However, in all the
BAOs, switching over to the package from manual maintenance have already been over,
this menu has been dropped in the revised version developed in Visual FoxPro.
General Instructions:
219
1.
The default PASSWORD is ‘COMPCOST’. You can enter into the package through
this password. If you need to have your password, please navigate in the following
direction.
Main Menu COMPCOST -> Menu UTILITIES -> Sub Menu PASSWORD.
2.
Please enter your factory details through Sub menu ‘FYDETL’ from the UTILITIES
menu.
3.
The Visual Foxpro takes care of Y2k problem.
4.
All existing files can be transferred into Costing package Database and got
converted into Visual Foxpro.
NOTE: CDX FILES MUST NOT BE DELETED. PACKAGE WILL NOT WORK.
It is to be noted that the ‘Costing Package’ has not been designed as per task-wise
as mentioned in Para 3 of this run manual. The package has been split into module-wise as
per the ‘flow of documents’ and event wise. ‘Warrants’ and estimates are the main
documents for the maintenance of this system and ‘Menu’ for this package has been
designed accordingly. The brief illustration is given in the next page.
Instructions to Install the package
The package is available in CDs. Please insert the CD into the CDROM drive.
Please click ‘My Computer’ of the desktop. In ‘My Computer’ menu, please click ‘Compact
disk’ icon. In ‘Compact disk’ menu please click ‘Disk 144’. In ‘Disk 144’ please click ‘Disk 1’.
On clicking ‘Disk 1’ menu, various files / folders will appear on the screen. Please click
‘Setup.exe’ icon. The screen with the following heading will appear
Costing – Package COMPCOST SETUP
In this screen, please click the button
. Next screen is ‘Name’ and ‘Organisation’
CONTINUE
Please enter the name and organization and confirm your entry clicking ‘OK’ . Next
screen is to ask for the folder name in which package is to be loaded. The default folder is
‘VFPCOST’. You can confirm it clicking ‘OK’ button. By pressing large button, the system
will start installing the package. In the end a message viz. ‘Costing Package – Compcost
has been completed successfully’ will be displayed. Now the package is available for use.
You may also create icon on the desktop from Compcost.exe file. After creating
icon, please right click icon and again click on ‘properties’ . In ‘properties menu, please
click ‘start in’ and enter the name of the directory in which the above package is available.
For example please key in ‘c:\vfpcost’ in case the package is stored in that directory.
In the COMPCOST main menu, the following are the menus:
1.
2.
3.
4.
5.
ADDITION
PROCESS
UPDATION
UTILITY
EXIT
All the menus will have sub menus which in-turn branches into
command(s) and sub command(s).
MENU: ADDITION:
220
OBJECTIVE OF THE MENU:
Inputting of the major primary documents affecting the Cost Accounting and this process is
continuous throughout the year. If the inputs are data transfer, the following fields should be validated 100%
with the manual documents before taking into the package. The main fields requiring 100% validation are:
a)
b)
c)
d)
Work Order
Warrant
Estimate No.
Revision No.
In case, instead of data entered from input documents if data are extracted through data transfer,
the data are required to be validated 100% checking with reference to manual documents which may be
available in the costing section duly audited and vetted.
Notwithstanding, other fields are also to be validated. However, the validation of the above fields is
mandatory.
On selecting the menu “ADDITION”, the following sub menus will be displayed.
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CHAPTER 14
JOINT CONSULTATIVE MACHINERY
A WING/DIVISION OF GRIEVANCE REDRESSAL SYSTEM:

The machinery is supplementary and not a substitute to the other facilities provided
to the employees for redressing their grievances.

UNRESOLVED PROBLEMS OF ORGANISATION CAN BE RESOLVED BY
CONSULTATION WITH THE STAFF OR THEIR REPRESENTATIVE.

With the object of promoting harmonious relations and securing the maximum
amount of co-operation from the employees to achieve greater efficiency, the Govt.
of India established this machinery for Joint Consultation and Arbitration of
unresolved problems.
ESSENTIAL FEATURES
THE CATEGORY OF GOVT. EMPLOYEES COVERED
The scheme covers all the regular Central Govt. Civil Employees except the following:
(i)
Members of Group ‘A’ services;
(ii)
Members of Group ‘B’ services other than the Central Secretariat Services and
other comparable services in the Hqrs. Organization of the Govt.
(iii)
Persons in industrial establishments employed mainly in managerial
or
administrative capacity and those who being employed on supervisory capacity
and drawing salary in the scales, the maximum of which does not exceed
Rs.8900/-.
(iv)
Employees of the UnionTerritories; and
(v)
Police personnel
A THREE TIER SYSTEM
This is a three tier system with:
(i)
(ii)
(iii)
A joint council at national level called National Council
Departmental Council
Regional/office Council
NATIONAL COUNCIL



National Council consists of
up to 25 members from official side and
up to 60 members from staff side.

The official side consists of membersnominated by the Govt. including Cabinet
Secretary, Secretaries of Ministries of Home Affairs, Labour, Communications,
Defence, Finance (Department of Expenditure and Revenue) and Ministry of
Railways.

The staff side consists
Uninions/Associations.

The cabinet Secretary is the Chairman of the Council and the staff side elects its
leader.
of
members
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nominated
by
the
recognized

Each side may appoint its secretary/Secretaries.

Meetings of National Council may be held as often as necessary as and not less
than once in four months.

Aspecial meeting may also be called by the chairman on his own or on a request
from either the official side or form the leader of the staff side.

The quorum of the meetings shall be 1/3rd each of the strengths of the official and
staff side.

The National council deals with the matters affecting central Govt. employees
generally, such as minimum remuneration, Dearness Allowance, Pay of certain
common grades.

Matters of interest to employees of a single Departmentare not dealt by the
National Council.

Any member when he desires inclusion of a subject in the agenda, he should
send it with explanatory memorandum where necessary to the Secretary Official
or Staff side, as the case may be at least eight weeks in advance of the meeting.
DEPARTMENTAL COUNCIL

The Departmental Councils are constituted at the Headquarters of each
Department.

The Official side consists of 5 to 10 members and the staff side 20 to 30
members.

Head of the Ministry/Department is the Chairman of the Departmental Council.

The other members of the official side are nominated by the Government. The
staff side members are nominated by recognized Associations/Unions of the
department concerned.

The Departmental Council deals with only matters affecting the employees in that
department.

There is normally one DC for each department of the Central Government.

Ministries/departments are supposed to hold at least three meetings of the DC in
a year. In case of failure to hold meetings as per schedule, DOP&T should be
informed indicating the reasons for failure to follow the schedule.

JCM STAFF SIDE TO BE CONSULTED BEFORE INTRODUCTION OF NEW
TECHNOLOGY.

JCM STAFF SIDE TO BE CONSULTED BEFORE INTRODUCTION OF
INDIGENOUS COMPUTER.

STAFF SIDE TO BE CONSULTED ON IMPORTANT MATTERS AFFECTING
STAFF.
223

UNCLASSIFIED ORDERS, CIRCULARS ETC. OF GENERAL INTEREST TO
EMPLOYEES TO BE SUPPLIED TO THE STAFF SIDE MEMBERS OF THE
JCM(dc) OF THE DOP&T.
REGIONAL/OFFICE COUNCIL

Where the structure of the department permits, the regional/office councils are
constituted at regional/office level.

The council consists of both Official side and Staff side.

The strength of the council is determined by the size of the employees in a region
or office.

The Head of the Region/Office is the Chairman.

These Councils deal with the regional/local problems.

The meetings of the ROC are required to be held at least once in two months.
GENERAL CONDITIONS OF JCM:

The members of the staff side are nominated by the Unions/Associations for a
term of three years.

There is no bar to re-nomination of the members.

No person who is not an employee or an honourably retired employee of the
Central Government can become member of the JCM.

Government may permit an ex-employee to be a member of a joint council after
examining the merit of the individual.

Vaccanies caused by the death, retirement, resignation, transfer , etc. will be
filled for the unexpired term.
Unions/Associations may replace such of their representatives who cease to be
their office-bearers.

JURISDICTIONS AND FUNCTIONS
The jurisdiction of the Councils(JCM) includes all matters relating to conditions of service
and work, welfare of the employees and improvement of efficiency and standards of
work provided that –
(i)
In regard to recruitment, promotion and discipline, consultation is limited to
matters of general principles; and
(ii)
Individual cases are not considered.
When the matter cannot be settled by negotiations in the National council/Departmental
Councils, the scheme provides for compulsory arbitration in respect of (a) Pay and allowances;
(b) Weekly hours of work; and
(c) Leave;
of a class or grade of employees. For other items, which are not arbitrable, action is
taken by the Govt. according to its own judgement and in case of disagreement, the staff
side, if they so desire, can place their view points before a Committee of Ministers,
consisting of the Minister administratively concerned with the subject, the Labour
Minister and the Minister-in-charge of the ministry of Personnel, Public Grievances and
Pension.
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CHAPTER -15
GOOD MANNERS & ETIQUETTE
Etiquette

Etiquette is protocol.It includes rules of behavior that you memorize; itseldom allows
for personal variations, individual concernsand needs.
Manners
Manners, on the other hand, relate to kindnessand caring about others.
Having good manners goes beyondsocially acceptable behavior and relates more to
howyou treat others because you care about them, their self-esteem and their feelings.
Good manners are under yourcontrol because they come from your heart, not a
formaletiquette book.
Good manners form the basis for good human relationshipswherever you are—at home, at
work, at the grocerystore, in church, in an airport or on the golf course.
Havinggood manners allows us to change with the times becausethe basis for manners is a
genuine concern for others.
More and more business people are faced with the challengesof knowing acceptable or
expected etiquette for today’sbusiness world.
In fact, business etiquette is big business, withspecial courses being offered for those who
are entering thework force as well as for those who want to gain extra skillsas they move up
the corporate ladder.
Spouses are ofteninvited along and taken into consideration when job interviewsinclude
receptions, dinners and other special occasions.
A gracious, etiquette-savvy spouse is just as important inmany situations as the person who
is actually applying for thejob.
Real manners are instinctive. You don’t turn them on andoff like a switch.
Real manners include such things as:








Becoming comfortable at making introductions andbeing introduced—and making
others feel good while it’shappening.
Starting the conversation again and helping to rescuesomeone who has just said
something embarrassing.
Buying a small bouquet of flowers or other thoughtful gift totake home to your spouse
or child.
Taking a picnic lunch to a neighbor on their moving day.
Clipping out a magazine or newspaper article and sendingit to a friend who would be
interested in it.
Buying some concert tickets and arranging transportationfor a lonely elderly friend
who loves music. (Better yet, attendthe concert and enjoy it with them.)
Providing transportation for a friend whose car is beingrepaired or for an elderly
neighbor who needs a ride to thedoctor or the store.
Rising to the defense of someone who is being unfairlycriticized.
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






Noticing the “wallflower” at a social event and helping tobring that person into the
group.
Becoming comfortable with good table manners and the artof “small talk” so that you
can concentrate on others and whatthey are saying.
Don’t forget that your own family is important, too!Setting a good example and
practicing good manners withinyour own home helps make all family members feel
better. Italso helps them to be more aware of their own behavior.They’ll also feel
more at ease with their social skills whenoutside their home surroundings.
Good manners can be contagious.
When you’re nice tosomeone else, that person is nice back to you.
Two people thenfeel good about themselves and each other and spread thisgood
feeling to others.
We should never be too busy forkindness and caring.
Ask yourself:






When was the last time you wrote a newsy letter to a goodfriend?
When was the last time you called someone who is homealone and probably feeling
lonely?
When was the last time you took time to write a congratulatorynote to someone who
performed well in a committeemeeting or conference?
How often do you say “please” and “thank you” to yourfamily members for doing
everyday tasks, such as clearing offthe table, dusting, taking out the trash, etc.?
How often do you actually sit down and talk face to facewith other family members or
a good friend?
When was the last time you said “thank you” to yourchild’s teacher or to someone
who was important to yourlife?
With “good sense” etiquette and caring manners, youhave the power to make order out of
disorder and bring greatpleasure into other people’s lives, in everyday living as wellas on
special occasions.
226
CHAPTER -16
Central Civil Services (Conduct) Rules, 1964 and
Central Civil Services (Classification, Control and Appeal)Rules, 1965
“Sense of discipline and privileges are essence of govt. service. All govt. employees are
subject to discipline and entitled to privileges in general.”
The above two aspects are fully covered by two sets of rules viz.
1. CCS(CONDUCT) RULES &
2. CCS(CCA)RULES
WHY CONDUCT IS SO IMPORTANT IN A CIVIL SOCIETY?
GOOD CONDUCT” PLAYS AN IMPORTANT ROLE FOR AN ORDERLY DEVELOPMENT
AND PROGRESS OF A PERSON/SOCIETY. IN THE CASE PERSON IT ULTIMATELY
PERCULATES TO THE SOCIETY IN WHICH ONE IS LIVING.
WHAT ARE “GOOD CONDUCTS” AND “BAD CONDUCTS”?
There is no fixed formula to arrive at what is good conduct & what is bad conduct. There are
no exhaustive lists also it changes due to passage of time, progress of society and intellect
of the people.
HISTORY OF CONDUCT RULES
IN HINDU RELIGION GOOD CODUCT IS CALLED “DHARMA” MAHABHARATA IS ALL
ABOUT VICTORY OF “DHARMA” IN CHRISTANITY – THE CODE OF CONDUCT FOR
JEWS WAS “THE TEN COMMANDMENTS” AFTER CHRIST- THE CODE OF CONDUCT
WAS “THE NEW COVENENTS” LIKE-WISE ALL RELIGIONS SET THEIR OWN “CODE
OF CONDUCTS” FOR THEIR BELIEVERS OR DEVOTEES .
CONDUCT RULES FOR GOVERNMENT SERVANTS
 Prior to 1964 there existed a bunch of rules and sets of codes for various categories
of govt. servants in a loose form.
 Since it was found difficult to operate such rules and codes the Central Civil
Services(Conduct)Rules 1964 was promulgated in November 1964.
 It underwent lot of changes thereafter.CCS (Conduct)Rules
 The term ‘conduct’ means personal behavior, deportment (manners, demeanours)
mode of action any positive or negative act.
 An employee is expected to promote the employer’s interests in connection with
which he has been employed.This means control over employee’s work, employee
must possess the capacity to work, obedience, responsibility,honesty, good conduct.
CCS (Conduct) Rules, 1964
Conduct Rules are promulgated in exercise of powers laid in Art.309 of the
Constitution.Art.309-Subject to the provisions of Constitution, legislature may regulate the
recruitment and conditions of service of persons appointed.
Rules 1 & 2- Short Title, Applicability, Commencement & Definitions.Applies to every
person appointed to a civil service or post including a civilian in Defence Service) in
connection with the affairs of the Union.Not to apply to certain categories of employees such
as railway employees, members of All India Services and holder of any post in respect of
which the President has, by a general or special order, directed that these rules shall not
applyCCS (Conduct)Rules
Rule 3-General :Govt Servants to Maintain absolute integrity; Maintain devotion to duty;
Do nothing which is unbecoming of a govt. servant. Integrity and devotion to duty to be
ensured by those holding supervisory posts Not to act otherwise than the his best
judgement except when he acts under orders of his superior officer Rule 3: Oral Directions
The direction of the superior officer should be in in writing. giving oral instructions should be
avoided.Govt servant receiving oral directions should seek confirmations in writing where
upon it shall be the duty of superior officer to confirm in writing.
IMPORTANT DECISIONS:
227

Devotion to duty Govt servant habitually failing to perform task assigned to him
within the set time and the quantity of performance expected of him shall be deemed
to be lacking in devotion to duty.
 Nothing in rule shall be construed as empowering a govt servant to evade his
responsibility by seeking instructions from superiors when such instructions are not
necessary under the scheme of distribution of powers and responsibilities.
 A govt. servant fails to perform the Assigned duties within the time set and with the
quality expected shall be deemed to be lacking in devotion to dutyDirections from
superiors shall ordinarily be in writing- but seeking instructions in writing where it is
not laid down in schemes of functioning shall be deemed as evading responsibity.
 Integrity is uprightness, purity and honesty.Fraud, embezzlement, disproportionate
asset, lack of honest decisions, temporary defalcation etc. come under the term lack
of integrity and a very serious offence warranting dismissal /removal from
service.Important decisions
 A public servant should not only be honest but should also have the reputation.If
misappropriation is proved no question of reinstatment , however small, it may be.
 Drawal of HRA on false certificate is misconduct.Important decisionsDevotion to duty
is commitment to the task assigned.
 Duty is like debt. It should be discharged without delay or demur. One must live
within rules and promote public interest and must carry out lawful direction of his
superior. One should act in one’s own direction within the sphere of limit.
Acting in One’s own directions within limit means :-working within delegation-no evasion
of responsibility by soliciting superior’s orders-law, rules etc-action is in accordance with
precedence-the decision is in his best judgement-expenditure incurred is not more than the
occasion demands.Important decisions
Acting under direction of official superior means:- one must obey a lawful order.- if a
govt. servant conducts himself in an inconsistent way it is misconduct- in govt. functioning, a
subordinate must obey an order given to him/her by superior authority. - obedience at
workplace is not slavery and does not violate natural rights.Important decisionsRefusal to
attend another’s duty is not disobedience.Refusal of order not made by Competent
Authority.Overstayal if substantiated cannot be brought under wilful disobedienceNegligence
not involving serious repercussions not misconduct. Unbecoming of govt.servant-means
unsuitable, indecorous, improper.
RULE 3A:PROMPTNESS AND COURTESY : No govt servant shall act in a discourteous
manner while performing his official duties or adopt dilatory tactics or willfully cause delay in
disposal of the work assigned to him.
RULE 3-B:OBSERVANCE OF GOVTS POLICIES:Every govt servant shall act in
accodance with the govt policies regarding age of marriage, preservation of enviornment,
protection of wild life and cultural heritage etc.Observe govt policies regarding prevention of
crime
against
women
RULE 3 C PROHIBITION OF SEXUAL HARRASMENT OF WORKING WOMEN:No govt
servant shall indulge in any act of sexual harassment of any women at her work place Every
govt servant who is in charge of a work place shall take steps to prevent the above
RULE 4 EMPLOYMENT OF NEAR RELATIVES: (1) No govt servant shall use his position
or influence directly or indirectly to secure employment to his family or dependents or
relatives. (2) No govt servants shall in discharge of his official duties deal with any matter or
award contract to any company or any person if he or any of his family members are interest
in that company or person
RULE 5 TAKING PART IN POLITICS & ELECTIONS: No govt servants shall be a member
of or be otherwise associated with any political party or any organisation which takes part in
politics or assist or subscribe in aid of any political movement or activity
RULE 6JOINING OF ASSOCIATIONS: No govt servant shall join or continue to be member
of an association the object of which are prejudicial to the interests of the sovereignty and
integrity of india or public order or morality
RULE 7- DEMONSTRATION AND STRIKES:No govt servant shallengage himself or
participate in any demonstration which is prejudicial to the interest of the sovereignty and
integrity of india, security of the state & friendly relations with foreign states, public order,
228
decency or morality or which involves contempt of court, defamation or incitement to an
offence or resort to or in any way abet any form of strike or coercion or physical duress in
connection with any matter pertaining to his service or service of any other govt servant.
RULE 8- CONNECTION WITH PRESS OR OTHER MEDIA: No govt servant shall except
with the previous snaction of the govt own wholly or in part or conduct or participate in
editing or management of any news paper or other periodical publication or electronic
media. A govt servant can in the bonafide discharge of his duties publish a book or
participate in a public media when a govt servant publishes a book or participate in a public
media he shall make it clear that the views expressed are his own and not that of the govt.
RULE 9-CRTICISM OF GOVT: No govt servant shall directly or indirectly crticise adversely
the policies of the govtException- by a trade union leader for the purpose of safeguarding
the conditions of such govt servants or for securing an improvement thereof
RULE 10- GIVING EVIDENCE BEFORE COMMITTEE OR AUTHORITY : No govt servant
should give evidence in connection with an inquiry except with the permission of the govt.
RULE-11-UNAUTHORISED COMMUNICATION OF INFORMATION: No govt servant
should communicate anything directly or indirectly to any un-authorised persons
RULE12-SUBSCRIPTIONS: No govt servant shall except with the previous sanction of govt
should not ask for or accept contribution to or otherwise associate himself with the raising of
any funds or other collections in cash or kind in pursuance of any object what so ever.
RULE 13- GIFTS: No govt servants shall accept or permit any member of his family or any
other person acting on his behalf to accept any gift Gift means transport, lodging or any
pecuniary advantage except from close relatives
RULE 13A-DOWRY: No government servant shall give or take or abet the giving or taking of
dowry or demand directly or indirectly from the parent or guardian of a bride or bridegroom
as the case may be any dowry
RULE 14- PUBLIC DEMONSTRATIONS IN HONOUR OF GOVT SERVANTS: No govt
servant shall receive complimentary or valedictory address or accept any testimonials or
attend any meeting or entertainment held in his honour or in honour of any other govt
servant-except farewell entertainment on transfer/retirement etc.
RULE 15- PRIVATE TRADE OR EMPLOYMENT: No government servnat shall engage
directly or indirectly in any trade or business or accept or negotiate for part-time or otherwise
employment shall not canvass in support of any business or insurance agency etc
RULE 15A- SUBLETTING AND VACATION OF GOVT ACCOMMODATION:Govt servant
shall not sublet lease or otherwise allow occupation by any other person of govt
accommodation which has been allotted to him
RULE 16- INVESTMENTS,LENTING& BORROWING No govt servant shall speculate in
any stock, share or other investment except occassional investment. Govt servants should
not lent money and collect interest or borrow money from unauthorised money lenders etc.
RULE 17- INSOLVENCY & HABITUAL INDEBTEDNESS
A govt shall so manage his private affairs as to avoid habitual indebtedness or insolvency
RULE
RULE 18- MOVABLE,IMMOVABLE AND VALUABLE PROPERTY
Every govt servant on first appointment shall submit a return of his assets
&liabilities,including movable and immovable property Every govt servant belonging to group
“a” & “b” shall submit annually return of immovable propery held by him. Movable property
secured in excess of rs.15 thousands in r/o group “c” & “d” & rs.20 thousand in r/o group a &
b should intimated to govt. Govt employee shall not transact on moveable or immovable
property dealings with persons with whom he has official dealings Govt employee shall not
aquire or dispose off immovable property with out permission of the govt.
RULE 18A- RESTRICTION ON AQUIRING PROPERTY OUTSIDE INDIANo govt servant
unless sanctioned by the prescribed authority can acquire by purchase, mortgage lease, gift
or otherwise either in his own name or in the name of the family any immovable property
outside IndiaDispose of by sale, mortgage, lease, gift or otherwise any immovable property
outside india.Enter into any transaction with a foreigner, foreign govt, foreign organisation or
concern in acquiring immovable property by purchase or sale, gift, mortgage or otherwise for
himself or members of family.
RULE19- VINDICATION OF ACTS AND CHARACTER OF GOVT SERVANTNo govt
servant shall, except with the previous sanction of govt, have recourse to any court or to the
229
press for vindication of any official act which has been the subject matter of adverse crticism
or an attack of a defamatory character.If sanction is not received with in 3 months, it will be
assumed to have been granted. Nothing in this rule prohibits a govt servant from vindicating
his private character or any act done by him in his private capacity.
RULE 20-CANVASSING OF NON-OFFICIAL OR OTHER OUTSIDE INFLUENCE No govt
servant shall bring or attempt to bring any political or outside influence to bear upon any
superior authority to further his interest in respect of matters pertaining to his service under
govt.
RULE 21- RESTRICTION REGARDING MARRIAGE No govt servant shall enter into or
contract a marriage with a person having a spouse living and No govt servant having a
spouse living shall enter into or contract a marriage with any person The govt may permit a
govt servant to enter into or contract any such marriage referred to above if it is stisfied that
(a) such marriage is permissible under the personal law applicable to such govt servant and
the other party to the marriage and (b) there are other grounds for so doing. A govt. servant
who has married or marries a person other than of Indian nationality shall forthwith intimate
the fact to the govt.
RULE 22-CONSUMPTION OF INTOXICATING DRINKS & DRUGS A govt servant shall(A) strictly abide by the law relating to intoxicating drinks or drugs in force in any area he
happens to be for time being (B) not be under the influence of any intoxicating drink or drug
during the course of his duty and shall also take due care that the performance of his duties
at any time is not affected in any way by the influence of such drink or drug; (bb) refrain
from consuming any intoxing drink or drug in a public place; (c) not appear in public place in
a state of intoxication; (d) not use any intoxicating drink or drug to excess
RULE 22A- PROHIBITION REGARDING EMPLOYMENT OF CHILDREN:No govt servant
shall employ to work any child below the age of 14 years. Some important decisions failure
on the part of the employee to inform his superiors of conviction by a criminal court will be
regarded as suppression of material information and will render him liable for disciplinary
action provisions of conduct rules do not violate fundamental rights under the constitution
some important decisions government servants should seek permission for joining
educational institutions-govt. should give conditional permission. Participation in“Shramdan”,
Civil Defence service, St.John Ambulance, Home Guards, Territorial Army etc are
permissible.
SOME IMPORTANT DECISIONS
 No permission needed for legal remedy.
 Neglect of family and failure to maintain family in a decent way attracts conduct
rules.
 Those holding responsible posts should maintain independence and impartiality in
discharge of their duties.
 Officers appointed to responsible posts should have visible reputation for honesty &
integrity care should be taken by govt servants to observe courtesy to elected
representatives-MPs/MLAs etc.
 Discourteous/unhelpful attitude and dilatory tactics in dealing with the public attracts
misconduct
 Participation by govt servants in proselytization attracts disciplinary action conduct
rules practice of untouchability is a serious misconduct.
 Joint representation from govt servants to be viewed as indiscipline/misconduct
 Observance of proper decorum during lunch break attracts disciplinary action under
conduct rules.
 Government servants should send their representations through proper channel only
advance copies should be sent to superior officers or authorities only after
exhausting normal channels
ACTS AND CONDUCTS WHICH AMOUNT TO MISCONDUCT
1. If the same is prejudicial to the interest of the master or to the reputation of the
master
2. If the act or conduct is inconsistent or incompatible with the due or peaceful
discharge of his duty to his master
3. If the act or conduct of a servant makes it unsafe for the master to retain him in
service acts and conducts which amount to misconduct
230
4. If the act or conduct of the servant is so grossly immoral that all reasonable men will
say the employee cannot be trusted
5. If the act or conduct is such that the master cannot rely on the faithfulness of his
employee
6. If the act or conduct of the employee is such as to open before him temptations for
not discharging his duties properly acts and conducts which amount to misconduct
7. If the servant is abusive or if he disturbs the peace at the place of his employment
8. If insulting and insubordinate to such a degree that it has become impossible to
continue as master & servant
9. If neglect his duty assigned to him
ACTS & OMMISIONS WHICH AMOUNTS TO MISCONDUCT
 Wiful insubordination or disobedience whether alone in combination with others
 Infidelity, unfaithfulness, dishonesty, untrustworthiness, theft or fraud
 Strike, picketing, gherao, inciting others to strike or gherao
 Gross moral misconduct-riotous or disorderly behaviour during working hours &
after working hours acts &ommisions which amounts to misconduct
 Habitual neglect of work
 Habitual late attendance (7) conviction by a criminal court
The CCS(CCA)Rules,1965
DOCTRINE OF PLEASURE
Art-310 of Constitution:
Employees of Union and State are civil servants and they hold office at the pleasure
of the President or Governor of State.
Pleasure in this context means arbitrary action in negation of the rule of law but this is
certainly based on the public policy. It is controlled by Article 311. The field covered by
Article 311 are excluded.The Doctrine of Pleasure is subject to the fundamental rights.
CONSTITUTIONAL PROTECTION Art . 311 of the Constitution provides two fold protection
to the Civil Services No authority subordinate to the one appointed shall have the powers for
removal/dismissal from service. Only after affording reasonable opportunity of defence
before removal/dismissal is imposed.
SCOPE OF PROTECTION UNDER ARTICLE 311
Not available to Defence Services of the Union, PSUs, Govt. Companies, Autonomous
Bodies.Applicable only in the cases where action is taken by way of punishmentGovt.
Servant cannot complain against the action taken on mutually agreed terms Article 311
Article 311.
(1) No person who is a member of a civil service of the Union or an all-India service or a civil
service of a State or holds a civil post under the Union or a State shall be dismissed or
removed by an authority subordinate to that by which he was appointed.
(2) No such person as aforesaid shall be dismissed or removed or reduced in rank except
after an inquiry in which he has been informed of the charges against him and given a
reasonable opportunity of being heard in respect of those charges. Provided that where it is
proposed after such inquiry, to impose upon him any such penalty, such penalty may be
imposed on the basis of the evidence adduced during such inquiry and it shall not be
necessary to give such person any opportunity of making representation on the penalty
proposed: Provided further that this clause shall not apply—
(a) where a person is dismissed or removed or reduced in rank on the ground of conduct
which has led to his conviction on a criminal charge; or
(b) where the authority empowered to dismiss or remove a person or to reduce him in rank
is satisfied that for some reason, to be recorded by that authority in writing, it is not
reasonably practicable to hold such inquiry; or
(c) where the President or the Governor, as the case may be, is satisfied that in the interest
of the security of the State it is not expedient to hold such inquiry.
(3) If, in respect of any such person as aforesaid, a question arises whether it is reasonably
practicable to hold such inquiry as is referred to in clause (2), the decision thereon of the
authority empowered to dismiss or remove such person or to reduce him in rank shall be
final.
231
PUBLIC EMPLOYMENT IS ONE OF ‘STATUS’Once appointed to a post, Govt Servant
acquires ‘status’ and his rights and obligations are not determined by consent of both the
parties but by the statutes or statutory rules. Hence public servant are not governed by the
master and servant relationship.
The CCS(CCA)Rules have been framed in conformity with the Article 311 of the Indian
constitution. The CCS(CCA)Rules contains the procedure to be followed in disciplinary
cases. CCS(CCA)Rules has IX parts which embrace 35 rules.
IX PARTS OF THE RULES:
GeneralClassification, Appointing Authority, Suspension, Penalties and Disciplinary
Authorities, Procedure for imposing penalties, Appeals, Revision, Review andMiscellaneous.
Short title and commencement
The Central Civil Services (Classification, Control and Appeal)Rules, 1965. These Rules
came into force on 1st December 1965. General
Application The Rules apply to every Govt. servant including every civilian government
servant in the Defence Services.The rules do not apply torailway servants, any member of
the All India Service, any person in casual employment, any person subject to discharge on
less than one month’s notice, any person for whom special provisions exist.
CLASSIFICATION OF GOVT. SERVANTSClassification of govt. servants has been revised
vide GOI, DOP&T, Notification, F.No.11012/7/2008-Estt.(A)dated the 9th April 2009.
Revised classification of posts GROUP ‘A’ POSTS A Central Civil post in cabinet
secretary’s scale(Rs.90000 fixed), Apex Scale (Rs.80000 fixed) and HAG plus scale
Rs.75500-80000); and A Central Civil post carrying the following grade pays:- Rs.12000,
Rs.10000, Rs.8900 and Rs.8700 in the scale of pay of Rs.37400-67000 in PB -4 and
Rs.7600, Rs.6600 and Rs.5400 in the scale of pay of Rs.15600-39100 in PB-3.
Revised classification of posts GROUP ‘B’ POSTSA Central Civil post carrying the grade
pay of Rs.5400, Rs.4800, Rs.4600 and Rs.4200 in the scale of pay of Rs.9300-34800 in PB2. GROUP ‘C’ POSTS A Central Civil post carrying the following grade pays:- Rs.2800,
Rs.2400, Rs.2000, Rs.1900 and Rs.1800 in the scale of pay of Rs.5200-20200 in PB-1.
Revised classification of posts GROUP ‘D’ POSTS A Central Civil post carrying the grade
pays of Rs.1300, Rs.1400, Rs.1600 and Rs.1650 in the scale of pay of Rs.4440-7440 in 1S
scale till the posts are upgrade.
Important provisions
APPOINTMENTS TO DIFFERENT SERVICES AND POSTS:
All appointments to Central Civil Services, Group ‘A’ and Central Civil Posts, Group ‘A’, shall
be made by thePresident.
All appointments to the Central Civil Services (other than the General Central Service)
Group ‘B’, Group ‘C’and Group ‘D’, shall be made by the authorities specified in this behalf
in the Schedule to CCS (CCA) Rules, 1965.
All appointments to Central Civil Posts, Group ‘B’, Group ‘C’ and Group ‘D’, included in the
General CentralService shall be made by the authorities specified in that behalf by a general
or special order of thePresident, or where no such order has been made, by the authorities specified in this behalf in theSchedule.
SuspensionA govt. servant may be suspended by the appointing authority whenDisciplinary proceeding
is contemplated or is pending; or a case in respect of any criminal offence is under
investigation,inquiry or trial: orin the opinion of the competent authority, Govt. servant has
engaged himself in activities prejudicial to the interest of the security of the stateoffence
involving moral turpitude, Corruption,embezzlement, misappropriation of Govt. Money,
possession of disproportionate assets, misuse of official power for personalserious
negligence of dutyDesertion from dutyRefusal or deliberate failure to carry out written
orders of superior officers
Purpose of suspension is to:
o safeguard against govt. servant interfering with preliminary investigation
o safeguard against govt. servant tampering with material evidence
o safeguard against govt. servant hampering investigation
o deterrent to exhibit the firm determination of Govt. to root out corruption &
other grave misconduct
Effect of Suspension
232
 Not an end to service
 Causes lasting damage to the reputation
 Causes hardship
 Bound by same discipline
 Bound to follow directions of superiors
 Retains lien on permanent postSuspension
 Entitlement - Subsistence allowance,travelling allowance, HRA,DA, CEA, HBA
DEEMD SUSPENSION
A Government servant shall be deemed to have been placed under suspension by an order
of appointing authority (a) with effect from the date of his detention, if he is detained in custody, whether on a
criminal charge or otherwise, for a period exceeding forty-eight hours;
(b) with effect from the date of his conviction, if, in the event of a conviction for an offence,
he is sentenced to a term of imprisonment exceeding forty-eight hours and is not forthwith
dismissed or removed or compulsorily retired consequent to such conviction.
REVOCATION OF SUSPENSION
An order of suspension made or deemed to have been made under this rule may at any
time be modified or revoked by the authority which made or is deemed to have made the
order or by any authority to which that authority is subordinate.
VALIDITY OF SUSPENSION ORDER
An order of suspension made or deemed to have been made shall not be valid after a period
of ninety days unless it is extended after review, for a further period before the expiry of
ninety days.
PENALTIES
MINOR PENALTIESCensure, withholding of promotion, Recovery from pay,Reduction to a
lower stage of pay for a period not exceeding 3 years without cumulative effect,Withholding
of increment of pay.
Censure, Warning, Reprimand etc.
An order of “Censure” is a formal and public act intended to convey that the person
concerned has been guilty of some blameworthy act or omission for which it has been found
necessary to award him a formal punishment, and nothing can amount to a “censure” unless
it is intended to be such a formal punishment and imposed for “good and sufficient reason”
after following the prescribed procedure. A record of the punishment so imposed is kept on
the officer’s confidential roll and the fact that he has been ‘censured’ will have its bearing on
the assessment of his merit or suitability for promotion to higher posts.
There may be occasions, on the other hand, when a superior officer may find it necessary to
criticise adversely the work of an officer working under him(e.g. point out negligence,
carelessness, lack of thoroughness, delay etc.) or he may call for an explanation for some
act or omission and taking all circumstance into consideration, it may be felt that, while the
matter is not serious enough to justify the imposition of the formal punishment of ‘censure’ it
calls for some informal action such as the communication of a written warning, admonition or
reprimand, if the circumstances justify it, a mention may also be made of such a warning
etc., in the officer’s confidential roll;however, the mere fact that it is so mentioned in the
character roll does not convert the warning etc. into “censure”.
Procedure for imposing minor penalty minor penalties ;Preliminary inquiryInforming
concerned individual,Submission of representation by the concerned employee within 10
days,Facility of inspection of record not provided unless documentary evidence is the main
ground for action,Consideration of representation,Issue of order
MAJOR PENALTIES:Reduction in rankReduction to lower stage in a time scale,Reduction
to a lower time scale of pay,Compulsory retirementRemoval from service,Dismissal from
service.
Procedure for implementing major penalties:Issue of Charge sheetto the delinquent govt.
servant, Delivery of charge sheet to him,Receipt of written statementfrom the employee,
Appointment of Inquiry Officer& Presenting Officer,Conduct of inquiry by I.O,Concerned,
employee taking assistance of defence assistant,Inspection of document,Examination of
witness,Evaluation of evidences,Forwarding report to Disciplinary authority,Consultation of
UPSC or CVC,Issue of final speaking orders.
APPEAL:
233
Orders against which no appeal lies:
(i) any order made by the President;
(ii) any order of an interlocutory nature or of the nature of a step-in-aid of the final
disposal of a disciplinary proceeding, other than an order of suspension;
(iii) any order passed by an inquiring authority in the course of an inquiry under Rule 14
for major penalty.
Period of Limitation of appeals
Forty-five days from the date on which a copy of the order appealed against is delivered to
the appellant. The appellate authority may entertain the appeal after the expiry of the said
period, if it is satisfied that the appellant had sufficient cause for not preferring the appeal in
time.
Revision:
Revision may be suo-motoor otherwise by the prescribed authorities who can review, revise,
confirm, set aside,enhance, reduceor remit back the case to the authority which issued the
order for further enquiry as considered necessary.Giving opportunity before enhancement is
mandatory or an inquiry for imposing any of the major penalties.
Period of Limitation of revision
Generally six months or within such time as may be prescribed in such general or special
order.
Review
The President may, at any time, either on his own motion or otherwise review any order
passed under these rules, when any new material or evidence which could not be produced
or was not available at the time of passing the order under review and which has the effect
of changing the nature of the case, has come, or has been brought, to his notice.
Every order, notice and other process made or issued under CCS CCA Rules shall be
served in person on the Government servant concerned or communicated to him by
registered post.
The authority competent under these rules to make any order may, for good and
sufficient reasons or if sufficient cause is shown, extend the time specified in these
rules for anything required to be done under these rules or condone any delay.
Disciplinary jurisdiction of Election Commission of India over Government servants
deputed for election duties.(Department of Personnel and Training’s O.M. No.
11012/7/98-Estt. (A) dated 07.11.2000)
The Election Commission observed that the Governments in many cases do not initiate
proceedings promptly against Government servants on the Commission’s
recommendations.
As per the aforementioned O.M. dated 07.11.2000, disciplinary action
against officers, staff and police personnel deputed on election duties shall be governed by
the principles and decisions agreed to between the Union Government and the Election
Commission and as recorded by the Hon’ble Supreme Court of India in its Order dated
21.09.2000 in Writ Petition (C) No. 606 of 1993 (Election Commission of India vs. Union of
India and Ors.). The terms of settlement were as follows :“The disciplinary functions of the Election Commission over officers, staff and police deputed
to perform election duties shall extend to –
(a) Suspending any officer/official/police personnel for insubordination or dereliction of duty;
(b)Substituting any officer/official/police personnel by another such person, and returning the
substituted individual to the cadre to which he belongs, with appropriate report on his
conduct;
(c)Making recommendation to the competent authority, for taking disciplinary action, for any
act of insubordination or dereliction of duty, while on election duty. Such recommendation
shall be promptly acted upon by the disciplinary authority, and action taken will be
communicated to the Election Commission; within a period of 6 months from the date of the
Election Commission’s recommendations;
(d) the Government of India will advise the State Governments that they too should follow
the above principles and decisions, since a large number of election officials are under their
administrative control.”
234
CHAPTER – 17
COMMUNICATION SKILL
What is communication
It is a process that involves exchange of information, thoughts, ideas and emotions.
COMMUNICATION PROCESS
There is a sender who encodes and sends the message, which is then carried via the
communication channel (media) to the receiver where the receiver decodes the
message,processes the information and sends an appropriate reply via the same
communication channel.
TYPES OF COMMUNICATION
Communication can occur via various processes and methods depending on the channel
used and style of communication. As such there can be various types of communication.
Based on the Communication Channels process can be broadly classified as:
i.
Verbal communication &
ii.
Non-verbal communication
Written communication is a type of non-verbal communication.
Verbal (auditory), communication includes speech, song, and tone of voice. Nonverbal
communication includes body language, sign language, paralanguage, touch, eye
contact, through media, i.e., pictures, graphics and sound, and Written Communication.
TIPS FOR EFFECTIVE COMMUNICATION




The communication is impliedly the response we get from our communication. A bad
response implies bad communication.
The goal of effective communication skills should be mutual understanding and
finding a solution that pleases both parties, not ‘winning’ the argument or ‘being
right’.
This doesn’t work in every situation, but sometimes (if you’re having a conflict in a
romantic relationship) it helps to hold hands or stay physically connected as you talk.
This can remind you that you still care about each other and generally support one
another.
235

Keep in mind that it’s important to remain respectful of the other person, even if you
don’t like their actions.
The following points may be kept in mind for effective communication:
Stay Focused: Sometimes it’s tempting to bring up past seemingly related conflicts when
dealing with current ones. Unfortunately, this often clouds the issue and makes finding
mutual understanding and a solution to the current issue less likely, and makes the whole
discussion more taxing and even confusing. Try not to bring up past hurts or other topics.
Stay focused on the present, your feelings, understanding one another and finding a
solution.
Listen Carefully: People often think they’re listening, but are really thinking about what
they’re going to say next when the other person stops talking.
Truly effective communication goes both ways. While it might be difficult, try really listening
to what your partner is saying. Don’t interrupt. Don’t get defensive. Just hear them and
reflect back what they’re saying so they know you’ve heard. Then you’ll understand them
better and they’ll be more willing to listen to you.
Try To See Their Point of View: In a conflict, most of us primarily want to feel heard and
understood. We talk a lot about our point of view to get the other person to see things our
way. Ironically, if we all do this all the time, there’s little focus on the other person’s point of
view, and nobody feels understood. Try to really see the other side, and then you can better
explain yours. (If you don't 'get it', ask more questions until you do.) Others will more likely
be willing to listen if they feel heard.
Respond to Criticism with Empathy: When someone comes at you with criticism, it’s easy
to feel that they’re wrong, and get defensive. While criticism is hard to hear, and often
exaggerated or colored by the other person’s emotions, it’s important to listen for the other
person’s pain and respond with empathy for their feelings. Also, look for what’s true in what
they’re saying; that can be valuable information for you.
Own What’s Yours: Realize that personal responsibility is a strength, not a weakness.
Effective communication involves admitting when you’re wrong. If you both share some
responsibility in a conflict (which is usually the case), look for and admit to what’s yours. It
diffuses the situation, sets a good example, and shows maturity. It also often inspires the
other person to respond in kind, leading you both closer to mutual understanding and a
solution.
Use “I” Messages: Rather than saying things like, “You really messed up here,” begin
statements with “I”, and make them feel about yourself and your feelings, like, “I feel
frustrated when this happens.” It’s less accusatory, sparks less defensiveness, and helps
the other person understand your point of view rather than feeling attacked.
Look for Compromise Instead of trying to ‘win’ the argument, look for solutions that meet
everybody’s needs. Either through compromise, or a new solution that gives you both what
you want most, this focus is much more effective than one person getting what they want at
the other’s expense. Healthy communication involves finding a resolution that both sides
can be happy with.
Take a Time-Out: Sometimes tempers get heated and it’s just too difficult to continue a
discussion without it becoming an argument or a fight. If you feel yourself or your partner
starting to get too angry to be constructive, or showing some destructive communication
patterns, it’s okay to take a break from the discussion until you both cool off. Sometimes
good communication means knowing when to take a break.
236
Don’t Give Up: While taking a break from the discussion is sometimes a good idea, always
come back to it. If you both approach the situation with a constructive attitude, mutual
respect, and a willingness to see the other’s point of view or at least find a solution, you can
make progress towards the goal of a resolution to the conflict. Unless it’s time to give up on
the relationship, don’t give up on communication.
Ask For Help If You Need It: If one or both of you has trouble staying respectful during
conflict, or if you’ve tried resolving conflict with your partner on your own and the situation
just doesn’t seem to be improving, you might benefit from a few sessions with a therapist.
Couples counseling or family therapy can provide help with altercations and teach skills to
resolve future conflict. If your partner doesn’t want to go, you can still often benefit from
going alone.
237
CHAPTER -18
MESR ORGANIZATION & ROLE OF DAD
Engineers in MES also act as Technical Advisor on all engineering matters to
the commanders from AHQ. to OC Unit level.
Comdr.
Rank
Engr. Adv.
Rank

Chief of Army Staff
General
E-in-C
Lt. Gen

GOC-in-C Command
Lt. Gen.
CE
Maj. Gen
Maj. Gen./
Zone CEs/
Brig/ Civ. of
Brig.
CWEs
equal rank
(Army Comdr.)

Area Comdr./Indep
Area Comdr.
of Col. or
Supdt. Engr.

Sub Area Comdr./ Stn.
Comdr.`

Stn. Comdr.
Brig./Col.
GE
Maj. or EE
SDO
Capt./EE/AE
Lt. Col.
Ltd.Col./
Maj./Capt.
MES ORGANIZATION: ROLE & FUNCTION
1.
E in C is the head of Corps of Engineer and Military Engineer Service.
He is the Technical Adviser to the Chief of the staff of Army, Navy and
Air Force. He advises to Ministry of Defense with regard to Engineer
Services relating to Ordinance Fys, R&D Estt; & Production and
Inspection.
238
(Para 21-RMES)
2.
LEVELS OF ORGANISATION.

E in C

Command CE

CE Zone/Project

CWE

GE

AGE
(Para 23 RMES)
3.
JURISDICTIONS:

E-in-C
: Technical Adviser to HQrs of All Services

Command
: Technical Adviser to Command Chief, DGOF
etc.

CE Zone/Project
:
Normally corresponds to Area/Sub Area
where however such MES formations are
intended primarily for Navy, A.F, Ord Fy or
specified projects.

CWE
: Districts (Sub Area) normally corresponds to
Area/sub Area where however such MES
formations are
intended
normally
Navy, AF, ord Fy or specified project

G.E
:
Divisions

AGE
:
Sub Divisions
(Auth: Para 24, 25, 46. RMES)
239
for
Note: 1. Formation of New District requires sanction of G.o.l.
2. Division/Sub. Div with th approval of E in C.
3. Sub Div. may be directly placed under a CWE by CE and will be
treated as a Div. Such AGE will carry out normal duties of a GE but
exercise financial power of AGE (I)
Technical Advisors & Asstt. to CE, CWE, GE
CE
-
Assisted by DCE
SSW-Technically check all works
Sr. Architect–Assist Sitting Board, Design of Building
and Inspection of Engr. Machinery.
CWE
-
SW/ASW –Technically check all works.
-
SBSO/BSO – Purchase, stock & issue of stores
-
Astt. Architect –Assist sitting Board, Design of
Building.
-
A.O - Head of Office.
GE
-
AGE(B/R) - Assisted by Supdt. Gr. I & II
BSO
-
(E/M)
- Assisted by Supdt. Gr. I & II & Store
keeper (Stores)
SA
-
Surveyor's Asstt. Assisted by SA. II & Draftsman.
240
Organization of MES
E-in-C (Lt. General)
Add & DG
DG (works)
Add. &
Add. &
Chief
Chief
Engr. Staff
(Maj. Gen)
(Maj. Gen)
DG (Pers)
DG (ESP)
SW
Arch
DDG (Maj. Gen)
(Discipline &
Vigilance)
DDG
(CSCC)
(Maj. Gen)
Air war
Memoria
l&
Musem.
CE-Civ
ADG
(Army)
ADGW
(DP)
DDG
(Navy)
Maj. Gen.
Civ (CE)
Brig
DDG (A.F.)
DDG W (U)
Brig
(Brig/CE)
DDG W
(P&C)
DDG W
Cantt.
DDG W
(Design)
(Brig/CE)
Plg (Brig)
(Brig)
CE
CE
CE
CE
CE
(WC)
(EC)
(SC)
(CC)
(NC)
C.E. (Command)
C.E. (Maj. Gen.)
241
CE
(SW)
BES
Add C.E.
(Brig)
(Brig)
DW
C.E. Zones
(Brig/Civ)
SSW
SA
DDW
(Col/ACE)
Col (Per)
S.O.1 (Per)
242
S.O.1
S.O. 1
(R & U)
(Bud)
C.E. (Zone)
C.E. (Brig/C.E.)
ACE
SSW
S.A.
ACE
ACE
(Plg)
E8
B6
(works)
(works)
S.O.1
(works)
S.O.1 (Plg)
S.O.1 (Design)
S.O.1 (EM)
Lt. Col./S.E.
Lt. Col./S.E.
Lt. Col./ S.E.
243
(Lt. Col./
S.E.)
Aos I/II
S.O.-II
E.1
(Resources)
E-3
Comdr. Works Engineer
(S.E./Col. if Mil)
GEs
Under each EWE, there are a number of GEs
DCWE
SBSO
Asdt.
DCWE/ACWE(EM)
(B/R)
Cir.,
Arch.
Maj./Cap. E.E./A.E.E.
of Civ.
Maj.,E.E.
Maj. of Mily.
SW/ASW
Civ.
AO
GDe-II
Maj./Capt
if Mily.
of Civ.
GE's
Under each CWE (A number of GEs are under him)
The functions of AO of the Defence Accounts Department attached to Engineer Offices are
three fold:
(i)
(ii)
s an Accountant, he maintains certain accounts in accordance with
prescribed rules from the data furnished to him.
s a primary Auditor, he applies certain preliminary checks to the initial
accounts and vouchers, etc.
(iii)
244
A
A
A
s a Financial Assistant and Adviser, he assists the head of the M.E.S.
formation in all matters relating to accounts and budget estimates and the,
operation of financial rules.
For the proper discharge of the duties, the AO is expected to keep himself fully
conversant with all sanctions and orders passing through the M.E.S. formation and with
other proceedings that may affect the estimates or accounts of actual or anticipated
receipts and charges in addition to the departmental orders, Govt. of India Orders,
Army Instructions, etc.
AO will examine all orders and sanctions affecting their work issued by the Govt. of India
and authorities subordinate to them, CGDA's letters and Controller's office orders etc. in
order to ensure that they are correctly applied. For this purpose they will hold monthly
conference (or at longer intervals where so authorised by Controllers) with their Staff. All
important and doubtful points arising during their day to-day working will be discussed
at these conferences.Theresults of the Conferences will be recorded in a Review
Register. Doubtful points connected with the interpretation of applicability of Rules,
instructions, etc. will be referred to the Controllers for orders.
A certificate of review of orders and sanctions will be submitted to t he CDA monthly
by the A0s
The M.E.S. Officers have instructions to see that the AO is given the fullest
opportunity of becoming conversant with these sanctions, orders and proceedings
and he will have a free access to them. To enable him to discharge his d uties
efficiently the AO is treated as a senior member of the office establishment of the
division his status being equivalent to that of a Senior Sub-Divisional Officer.
The AO will see that the rules and orders in force are observed in respect of all
transactions, which fall within the sphere of his duties. If he considers that any
transaction affecting receipts or expenditure is such as would be challenged in audit, it
is his duty to bring this fact immediately to the notice of the head of the formation with
a statement of his reasons, and to obtain his orders on the case. Should the M.E.S.
Officer disagree with him, the A.O. shall comply with his orders and concurrently report
the full facts of the case to the Controller of Defence Accounts.
The A.O. should bring to the notice of the head of the M.E.S. formation all instances in
which the subordinate officers exceed the financial limitations placed on their powers. He
may also be required by the Head of the formation to undertake on his behalf such other
scrutiny of the accounts of subordinate officers as the latter may consider necessary.
M.E.S. Officers are required to obtain the advice of their AO in all matters connected
with the accounts of their formations or the application of financial rules and or ders
concerning which there may be some doubt. All cases of importance, the A.O. will give
his advice in writing while the M.E.S. officers are not precluded from seeking the
advice of L.A.O. /C.D.A. whenever they consider such a course necessary, they shou ld
first obtain the advice of their A.O., vide para 8 MES Regulations (1968 Edition) and
should refer matters to the L.A.O. / C.D.A. only when they do not agree with the AO.
FUNDAMENTAL PRINCIPALS OF MESR
1) No works service will be executed without administrative approval and technical
sanction having first been obtained from the authority appropriate in each case
and without funds being available to meet expenditure on it .
2) No officer will, in the course of the financial year, exceed aggregate budget
allotment made to him on any work or under any sub-head of maintenance.
3) No officer will exceed any specific budget allotments made to him under any minor
or detailed head, except in so far as he may, within his powers of transfer of funds,
be able, to meet excess expenditure on one item by equivalent savings on another.
4) No officer will take action to incur expenditure in excess of the administratively
approved amount beyond permissible limits ,whether such excess is due to
error in the approved estimate or to alteration of the approved design, without
obtaining prior sanction of the C.F.A.
245
BASIC PRINCIPLES OF DWP
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
No new works should be sanctioned without careful attention to the assets or
facilities already available and the time and cost required to complete the new
works.
As budgetary resources are limited and granted on an annual basis, adequate
provisions should be ensured for works and services already in progress before new
works and services are undertaken.
If an approved work is not commenced within one year of the date of
Administrative Approval, fresh Administrative Approval of the Competent
Financial Authority (CFA) should be taken.
Since time is of the essence, the completion period stipulated in the Administrative
Approval will not be exceeded as far as possible.
No works services will be executed without administrative approval, formal
allocation of funds and technical sanction having first been obtained from the
Competent Authority in each case.
No officer will, in the course of the financial year, exceed the aggregate budget
allotment made to him for any works or under any subhead of maintenance.
No officer will exceed any specific budget allotment made to him under any minor
or detailed head, except in so far as he may within his powers of transfer of funds,
be able to meet excess expenditure on one item by equivalent savings on another.
The final cost of any service will not exceed the amount of Administrative
Approval by more than 10%. An officer will take no action which will commit
Government to expenditure beyond 10% of Administrative Approval amount
without obtaining prior sanction of the Competent Financial Authority in the form
of a Financial Concurrence (FC), a Corrigendum or a Revised Administrative
Approval.
The CFA according Administrative Approval should be kept informed of the progress
of the works till their completion through regular periodical reports.
No project or work services will be split up to bring it within the powers of a CFA
at a lower level
Classification of Works:For purpose of budgeting and control, the operations of Defence Works are
divided into two broad categories, namely:a) Original Works
b) Repairs
For administrative purpose original works are divided into the following
categories:i) Major capital works costing Rs 1.5 lacs and more
ii) LBW works costing more than Rs 2 Lakhs but less than Rs 15.00 Lakhs
iii)Revenue works costing more than Rs1.00 lakhs & not exceeding Rs 2.00 Lakhs
iv) Minor Works costing not more than Rs1.00 Lakhs.
PROCESSING OF MAJOR CAPITAL WORKS
Nine main stages in the planning, sanctioning and execution of new Major Capital
Works:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Demand for and Planning of New Works.
Acceptance of Necessity
Preparation of Approximate Estimates
Administrative Approval
Appropriation of Funds
Technical Sanction
Tender Action
Contract Action
Execution of Works
246
DEMAND FOR PLANNING OF NEW WORKS
Demands for new Major Capital works services will be submitted in the form of a
Statement of Case to the Competent Financial Authority for consideration and approval.
After examination and approval of the Statement of Case, the CompetentFinancial
Authority will convene a Reece-cum-Sitting and Costing Board. Such Board
Proceedings (BPs), while examining the various features of the new works proposal,
will also deliberate on the need, if any, for compressing the normal time-frame of
carrying out the works, issue of a go-ahead' sanction for preliminary works in case of
works proposals costing more than Rs.1 Crore and delegation of special powers to
the Chief Engineer for planning and execution of the works and make necessary
recommendations.
ACCEPTANCE OF NECESSITY
Acceptance of necessity at the lower level is based on rough estimates, however, at the
Ministry level; it must be based on a detailed AE.
There are different powers of the CFA at various levels for accepting the Necessity
and according Administrative Approval for various types of works with or without
financial concurrence .
APPROXIMATE ESTIMATES
The engineer authorities will prepare the Approximate Estimates in the prescribed
Performa (Appendix 'E') as per the lines indicated in the approved Statement of Case
and / or Board Proceedings / DPR. Office and domestic accommodation requirements
for the MES constructional staff, consultancy charges, if any, necessary external
services, and other requirements of technical nature will be included in the
Approximate Estimates, even if no specific recommendation of the Board of Officers
is existing.
ADMINISTRATIVE APPROVAL
Administrative Approval will be accorded by the Competent Financial Authority (C FA) to
the execution of the works after due examination of the Approximate Estimates. It will
state clearly whether the works being approved are authorized or special. Special items
of works will be specified and reasons for approving the same will be stat ed.
REVISED ADMINISTRATIVE APPROVAL
A revised estimate will be prepared in the Proforma at Appendix 'G', the original and
revised figures being shown in parallel columns of a comparative statement. The
causes of the excesses should be set out clearly and concisely in the remarks column
of such a comparative statement. There is no limit as to the number of times that an
estimate may be revised.
URGENT WORKS
Urgent military reasons must be made very explicit and CFAs must be held
responsible for their decision. Notwithstanding the procedures laid down in, if for
urgent military reasons delay involved in the issue of administrative approval based
on approximate estimates cannot be accepted, the Competent Financial Authority is
empowered to order commencement of work on essential items of required work
prior to the issue of administrative approval. In doing so, however, the CFA should
ensure that no accommodation or facility is constructed in excess of requirements.
The Go-Ahead sanctions accorded by CFAs lower than the Government of India will
be subject to the laid down conditions. However Administrative Approval for such works
have to be obtained within 6 months from the date of commencement of works.
PROCESSING OF LOW BUDGETED WORKS
247
In case of Low Budgeted Works, i. e., original capital works costing more than Rs.2 lakh,
but less than Rs. 15 lakh, these works will be sanctioned by the UAs after the Annual
Low Budgeted Works Program has been approved and bulk allotments of funds for this
purpose in the relevant financial year have been made to the respective CFAs. Board
Proceedings can be dispensed with in case of Low Budgeted Works costing up to Rs.10
Lakh, if so decided by the CFA. Administrative Approval in such cases will be based on
consideration and approval of a Statement of Case by the CFA and Approximate
Estimates.
POWERS OF TECHNICAL SANCTION
Powers of technical sanction are laid down in MES Regulations, Table B. The engineer
officercompetent to sanction the project as a whole is technically responsible for the
project and for ensuring that the amount of the project as a whole is not exceeded .
APPROPRIATION OF FUNDS
Appropriation of funds means the allotment of a particular sum of money to meet
expenditure on a specified work through the annual allocation of funds under the
budgetary heads immediately after passing of the Defence Service Estimates by
Parliament. Re-appropriation of funds may be carried out by the QMG, GOC-in-C and
MES Authorities.
TENDER ACTION
After the schedule of work for a project or sub-project has been technically sanctioned by
the competent engineer authority, tenders will be invited for the execution of the work.
Normal method of contracting will be based on competitive tendering.
ACCEPTANCE OF CONTRACT
Powers of acceptance of contracts are laid down in MES Regulations.
REDUCTION OF SCOPE OF A PROJECT
When the scope of a work service is reduced for administrative or other reasons, the
Administrative Approval need not be revised; but the approved amounts for the
abandoned or reduced items of the service and the total approval amount will be
reduced accordingly by the concerned engineer authority within whose powers of
technical sanction the work falls.
Details of such reductions of scope will be sent to the CFA, the CDA andall ot hers
Concerned .
EXECUTION OF WORKS
After acceptance of contract, the execution of works and their supervision will be
carried out by the engineers-in-charge as per MES Regulations read with MES
Standing Orders. Deviations on and amendments of contracts, if necessary, will be
carried out as per MES Regulations and Standing Orders.
SCRUTINY OF ADMINISTRATIVE APPROVAL
In scrutinising sanctions conveying administrative approval, the A.O. will verify that a copy
of the orders according sanction has been endorsed to the C.D.A. who is responsible for
the audit of such sanctions and will see that the necessity for the work has been accepted
by the CFA.
A record of administrative approvals will be maintained in the register of approvals to works
(I.A.F.W. 1816) in the GE's office under the supervision of the A.O.
A separate register will be maintained for each year. Works carried over from one year
to another will be repeated in the new register, the entries in the two registers being
linked together. If a project comprises two or more sub-works, each sub-work will be
entered therein together with the amount relating thereto, the name of the project, the
total amount and references to the authority for sanction, being noted on the top in red
248
ink. The column for technical sanction will be completed as and when the sanction is
accorded.
REVISED ADMINISTRATIVE APPROVAL
It is not permissible for Engineer Officers to incur expenditure on any service the final
cost of which exceeds the amount of administrative approval by more than 10%. When
an excess over this limit, which cannot be met by savings on other items, occurs or
appears likely to occur on account of technical reasons, a report will be made at once to
the Engineer Officer of the authority who approved the work. If there is still time to
curtail the work or modify it, his orders should be obtained. If no modification is ordered
a revised estimate will be prepared and revised administrative approval of the C.D.A.
obtained.
There is no limit as to the number of limits an estimate may be revised.
Moreover, if an approved work is not commenced within one year from the dateof
Administrative Approval, fresh approval must be obtained.
TECHNICAL SANCTION
The A.O. will scrutinize technical sanctions whether a detailed estimat e or requisition is
prepared or not, to see that the sanction has been accorded by the competent
authority, that the amount of sanction (which will be the amount of administrative
approval in cases' in which a detailed estimate is not required by rule to b e prepared)
does not exceed the powers of sanction of the engineer authority concerned and that
administrative approval exists. In cases in which a separate administrative approval is
not required under rules, it will be seen that the expenditure sanctione d is authorised.
It should also be seen that the technical sanction is accorded by the competent
engineer authority before calling for tenders or commencing work. No contract will be
made nor will work begin till the schedules of works have been costed and technical
sanction given.
SCALES OF ACCOMMODATION
The scales of accommodation approved and issued by the Government of India from
time to time are intended as a close guide. Petty variations in individual cases can be
made at the discretion of the Competent Financial Authority at the time of according
Administrative Approval with reasons recorded in each case, provided such variation
are not of general application and do not create any precedent in the matter of
scales of accommodation.
SPECIFICATIONS
a.
All works catering to short-term requirement, i.e., accommodation not
expected to be required for a period of over five years from the anticipated date of
completion of the work, will be in temporary construction and built to specifications
of the lowest possible type having regard to availability of material and the purpose
of the facility or service.
b.
All works catering to long-term requirement, i.e., accommodation expected
to be required for a period of more than five years from the anticipated date of
completion of the work, will be built to permanent specifications.
c.
The above-mentioned period of five years will be taken as a close guide.
Competent Financial Authority will use their judgment to decide about the choice of
permanent or temporary specifications in special cases and record the reasons thereof
while according Administrative Approval.
d.
Building will be identified as prestigious at the stage of approval of the Annual
249
Works Programme (AWP). However, for such projects, a separate detailed
justification will be submitted by the service HQs to MoD. After the
approval of MoD declaring the building as prestigious, it will be permissible to
add in the Approximate Estimates a specific percentage subject to a maximum of
10% of the total cost of the buildings towards providing special architectural features
and superior specifications.
e.
Temporary specifications will be laid down by Zonal Chief Engineers on individual
basis in accordance with general guidelines issued in this regard by E-in-C's Branch.
SCOPE FOR IFA CONCURRENCE FOR WORKS PROPOSALS
The role of IFA in Defence Works can be brought under three different
categories namely
(a)
(b)
(c)
Acceptance of Necessity
Concurrence for Admin Approval / Revised Administrative Approval
Financial Concurrence Cases
IFA CONCURRENCE FOR ACCEPTANCE OF NECESSITY FOR WORK.
The Powers of Administrative Authorities for Acceptance of Necessity and Admin
Approval for Works are laid down in RMES which lays down the Powers to be
exercised without and with Consultation of IFA separately, further sub-divided into
Authorized and Special works for each of the above two categories.
In cases where the project includes both authorized and special items of work the
criterion shall not be the financial powers for the authorized items of work alone . In
such a case, therefore if the estimated cost of the total of the special items of work
exceeds the financial powers of the CFA, for those items, the administrative approval
shall be issued by the CFA under whose powers the Special items of work fall.
Acceptance of Necessity is based on Rough Estimates except when the case is dealt
with at Ministry Level. Before according approval for Acceptance of Necessity, the CFA
will ascertain that funds will be made available at the appropriate time for carrying o ut
the works before passing such orders.
POINTS TO BE SEEN DURING SCRUTINY OF BOARD PROCEEDINGS
It should be seen that the board proceedings outlining the detailed justification in terms of
necessity/requirement of the proposed work.
FINANCIAL CONCURRENCE BY IFA FOR ISSUE OF ADMIN APPROVAL /
REVISED APPROVAL
The financial powers of CFAs for Acceptance of Necessity and Administrative Approval
are the same. The Concurrence of IFA is sought for the Administrative Approval Amount
after the Acceptance of Necessity has been obtained. AE’s cannot be prepared until
Acceptance of Necessity by CFA.
DOCUMENTS TO ACCOMPANY FINANCIAL CONCURRENCE FOR AA OR RAA.
The proposal should be submitted through regular noting on file.
The following documents must be made available for giving concurrence.
AE s Part I and Part II singed by the Competent Engineer Authorities with supporting
documents for MV/DCS etc.,
(a)
(b)
Fund Availability Certificate in the Prescribed Format.
250
(c)
Concurrence of CFA Accepting Necessity for Work
GUIDELINES FOR SCRUTINY OF APPROXIMATE ESTIMATES:
The AE s will be prepared in the prescribed Proforma as per the lines indicated in the
approved SOC and / or Board Proceedings/DPR.
Contingencies will be provided at 3% of the estimates. Establishment Charges duly
recording reasons and not exceeding 2% will be provided for Deposit Works, but will
not be provided for MOD establishments
No Special items of works or superior specifications will be included without specific
approval of the CFA.
Approximate Estimates will be prepared by the Competent Engineer Authorities and will be
checked by the next higher Engineer Authorities
AE s has to be prepared within 6 weeks after Acceptance of Necessity.
TIME SCHEDULE FOR COMPLETION OF WORKS
Pre-admin Approval
Total time period prescribed from initiation of Major Works Programme by Command
HQ to be implemented two years later and forwarding them to QMG's Br to receipt of
Admin Approval/release of work is 78 weeks. For repetitive works lesser timings may
be achieved.
Post Admin Approval
Total time prescribed from issue of works operational order to period of physical
execution is as under:Md Accn / OTM Accn
Chief Engineer Contracts - 95 Weeks to 102 Weeks
CWE Contracts - 78 Weeks to 88 Weeks
GEs Contract - 49 Weeks to 56 Weeks Notes
Works of site development including soil investigation and approval of line plans by the
users to be dovetailed in to pre-admin Approval stage.
(ii)
Time period for design of Multistoried Married Accn to be dovetailed with pre-admin
approval time schedule, after acceptance of necessity and sanction of work.
(iii) For complex structure of OTM Accn add 33% more time.
(iv) External Services design and planning in developed areas/zones, the time is
concurrent with the bldg works.
(v)
6 to 8 more weeks for financial concurrence cases.
(vi) For multi storeyed constructions add 25% extra time.
(a)
(b)
(c)
(i)
ADMISSIBILITY OF ESCALATION: In case of works scheduled to be completed
within two years, no escalation except statutory increases will be allowed in the
contracts for execution of such works.
FINANCIAL CONCURRENCE CASES (FC CASE)
DEFINITION OF FINANCIAL CONCURRENCE: Financial Concurrence means
acceptance by the CFA to incur expenditure more than the amount catered for in the
Admin Approval based on the rates quoted by the Lowest Tenderer to avoid time and
cost overrun of the full part of the project. Thus once the Tenders are issued the case
should be processed as FC case and not one for Revised Administrative Approval.
LIST OF DOCUMENTS TO BE ENCLOSED FOR FC CASES
Abstract in duplicate for the buildings/works for which market analysis is submitted.
251
Comparative Statement of Rates/Lump sum amounts
Confirmation that the market rates for materials are those at which
materials are being procured by contractors on ongoing works or independently
verified from the manufacturers or their authorized dealers whichever is less.
3.
Confirmation that the market wages for labour are those actually being paid by
the Contractors presently on ongoing works verified from Contractors wage books and
wage sheets and at the time of disbursements
4.
Confirmation that the take off and pricing is counter checked with reference to
tender provisions including drawings by AE (QS &C) /Asst Dir (C)/Dy.Dir (C) / Jt. Dir (C).
5.
CTC of tender documents duly amended
6.
15 Point Proforma as per format in Appendix of MES Manual on Contracts.
7.
Market analysis of building/works including services.
1.
2.
8. Certificate under signature of CE that the lowest tender is reasonable and re-tendering is not likely to
reduce the rates.
E section of CDA is responsible mainly for following items of work:
Audit and accounting of work carried out by MES. The work related to scrutiny of
Adm. Approval and Technical Sanction.
2. Scrutiny and vetting of contract agreements, amendments and deviation orders.
3. Pre audit of Final Bills the gross value of which exceed Rs10.00 lakh and authorization
of claims arising out of MES contracts.
4. Provision of cash assignment to MES offices / DEOs.
5. Safe custody of security deposits and their release.
6. Preparation of Annual review of MES expenditure.
7. Matter relating to recovery of License Fee and allied charges.
8. Receipt of Cash Book with all paid vouchers and post audit of Paid Vouchers.
9. Scrutiny of MERs received from GE
10. Married Accommodation Projects
11. Operational Works.
1.
Payment of RAR: - AAO GE in RAR will see the following points:
In case of term contract advance payment against each individual work order is made
at the interval of not less than one month provided the estimated value of work
performed is not less than 3000/- for new works and Rs. 10000/- for repair services
and value of payment on Account is not less than Rs. 1500/- and Rs. 5000/respectively.
2. In the case of measurement and lump-sum contracts, the running account receipt
(IAFW 2263) is presented at an interval as prescribed in CA and that credit has been
given to the contractor for under noted percentage of value of work executed and for
75%/85% of the value of imperishable materials as assessed by the GE lying at site.
1.
Retention Money:
For works not exceeding Rs. 5 lakhs: 90% of the value of the work executed.
For works exceeding Rs. 5 lakhs and upto Rs 10 lakhs: 90% of the value of the work
executed up to Rs. 5 lakhs, 92.5% of the value of the work executed for the balance.
c.
For works exceeding Rs. 10 lakhs: 90% of the value of work executed for the
first 5 lakhs, 92.5% for the next 5 lakhs and 95% of the value of work executed
for the balance.
a.
b.
AAO GE will look for the following certificates/ points in payment of RAR :
That no work which is not covered either by a contract rate or special
rate duly approved is included in the RAR.
2.
That no materials and/ tools and plant have been issued without rates
1.
252
for issue being settled.
That all debits against the contractor in respect of transactions up to the
date of this RAR have been recovered.
4.
That the quantities of material detailed have actually been brought by
the contractor and are lying at the site of the work on the date of issue of the
certificate.
5.
That in case of contract for supply of stores and materials, that the
contractor Is not paid more than 90% of the supplies delivered and approved to date
and that the sum so due Is not less than Rs. 1500/-.
3.
6.
That the deduction of Income-Tax/Surcharge & Education Cess has been made in
terms of section 194-C of the income tax act 1961 and the amount so deducted compiled to the
relevant code-head.
7.
That sales tax has been recovered at appropriate rate.
8.
RARs payment may be made up to a period of six months in case of specialist
contract and up to four months only in case of other contract from the date of
finalization of contract without receipt of attested copy from the CDA.
Measurement Books
Measurements are recorded in the
accounts of measured work and
counted. It provides a complete
therefore include all items having
contract may be computed.
measurement book (IAFW-2261). The M.B. is basis of all
of materials received which have to be measured or
record of work performed under a contract and will
a financial value, so that the final amount due under a
Measurement book may be produced as evidence in a court of law or before an arbitrator,
entries therein must be indelibly recorded, properly described agreed and signed by the
parties concerned on the site at the completion of each days measurements.
The AO GE will take census of all measurement books on the charge of the formation as
recorded in the M.B. register once in a year in the month of April with a view to ensuring
that no M.B. is missing.
AUDIT OF CONTRACT FINAL BILLS
Submission:
The contractors should submit final bill on prescribed Proforma IAFA 2262 in duplicate
within one months of completion of work to GE along with all supporting abstracts and
vouchers.
Schedule of Payment:
The final bills are to be completed within one month of completion of work. as a rule all
checks by MES and audit should be completed as possible but not later than Four months
for contract up to Rs. 5.00 lakh and Six months for contract exceed Rs. 5.00 lakh.
Following documents are to be attached with the final bill:
Bill forwarding certificate — 2254
Final Bill form - IAFW 2262
Abstracts
Statement of stores
USR statement
T & P statement
Water recovery statement
Compensation certificate
Correction sheet showing financial effect due to amendments during
technical check.
10. Copies of work orders/ DOs together with copies of star/special rates.
1.
2.
3.
4.
5.
6.
7.
8.
9.
253
Certificates to be verified :
Gross/Net value of work to be signed by contractor with date (cage— I)
Certificate of satisfactory completion and site clearance by GE (cage — III)
Technical check certificate by JE (Q&S) /ASW/SW (Cage — IV)
Certificate of MB check & correctness of rates as per CA by GE (Cage — V)
Passing endorsement by MO GE & GE (cage — VI)
Technical check endorsement by JE (Q&S) /ASW/SW on store statement
Demolition statement duly verified by AAO GE.
Devaluation statement duly technically checked by SW/ASW has been accepted by the
contractor and signed by the accepting officer.
9. MO GEs certificate of check with log book to be verified on consolidated statement of
T&P attached to the bill.
10. Recovery of water/electricity charges statement to be endorsed by MO GE regarding
correctness of readings etc.
1.
2.
3.
4.
5.
6.
7.
8.
Percentage Checks in E section:
(1) Calculations are checked in respect of as many items as work up to — a total
(2)
(3)
(4)
(5)
of 10 % of the gross amount shown in a bill.
Schedule rates checked - upto 50%
Pro rata and star rates - 100%
Arithmetical check on statement of stores & 10% of total
Statement of T & P will be confined to amount shown in the statement
Audit:
Bills are submitted on prescribed form and are in original
Contractor signed for gross amount of Bill
Totals shown in words as well as figures
No errors in totals and all alterations attested by officer concerned.
Copies of documents etc supporting the bill are original.
6. Contractor gave a clear 'No Demand' certificate on page — 2 of the bill over his
dated signature.
7. The CA to which the final bill relates has been scrutinized.
8. Objections/observations on CA settled. If not, have the remaining got any
financial effect.
9. Work completed within stipulated period. Otherwise compensation for delay has
been correctly recovered and statement signed by both parties.
10. Completion certificate attached to the bill and sizeable amount with held for
defect rectification. It will be seen that completion certificate has been issued
within seven day from the date of completion of work
1.
2.
3.
4.
5.
11. Demands outstanding against contractor recovered from the bill.
12. Nomenclature of items of work executed shown in the abstract of Quantities
13.
15.
16.
17.
18.
attached with the bill checked with that given in Sch. A, Dos & Amendments.
Rates and quantities in the Abstract tally with Schedule 'A', Dos &
Amendments. 14. The terms and special conditions of CA are fulfilled.
Consolidated stores statement duly technically checked enclosed to the bill.
Stores issued are covered by sch. 'B' and rates correctly charged
Non Schedule 'B' stores are correctly priced
Over issues were either condoned or paid as per prescribed rates.
19. Under issues either condoned or devaluation statements prepared and
accepted by competent authority
20. Contractor penalized for failure
21. Penal rates recovered for loss
to return surplus stores
of stores issued free for
254
fixing only.
22. Demolition statement duly verified by AO GE attached to the bill and credit
afforded to government for dismantled stores used by the contractor.
23. Liquidated damages either recovered or waived by competent authority
24. Consolidated statement of T & P attached to the final bill and issue and higher
charges are as per Sch. 'C' of CA.
25. AOs GE certificate of Log Book check seen in audit
26. Water and Electricity charges correctly recovered as per CA
27.In disputed and delayed cases, a further on account payment to the extent of
agreed portion may be allowed only after scrutiny of final bill by the CDA.
28. All final work bills have been technically checked by ASW /SW of CWE's office
beforesubmission to CDA for pre audit and payment.
29. All advances paid against the CA on RARs have been recovered in the final bill
quoting cash book item Nos. and dates.
30. For periodical services final bills the following additional certifi cates have to be
seen(A) Buildings shown in the CA checked with RPMB/ RTMB
(B) Building provided in CA exist at the site.
(C) The area of periodical service shown in the CA tallies with the area in
PSMBs
(D) Prescribed interval certificate for periodical service duly verified by AO GE.
(E) Certificate of check by RAO /LAO and AO GE in respect of PSMBs to be
endorsed by AO GE.
31. Certificate of testing for electrical/ water fittings and moisture contents in timber
etc., as per CA are attached.
32. In bills for "boring of tube wells" when bores prove unsuccessful due to
successive trials it is to be seen that infructuous expenditure incurred thereon
has been regularised.
33.The prescribed check by auditor / AO GE on the abstract have been carried out
and the items so checked initialed by Auditor and AO concerned.
34 When a contractor refuses or neglects to submit his final bill or refuses to sign
a bill prepared by MES authorities, a note will be made in the bill and the bill
processed for audit. The sum due to contractor will be debited to the work
per contra credit to sub head (S) Miscellaneous Deposits. If the final bill
shows that the contractor was overpaid, the amount will be debited to the
Sub Head MES Advances and MES authorities advised to initiate recovery
action.
CASH ASSIGNMENT AND CASH BOOK
In the case of MES Officers Commander Works Engineer, Garrison Engineer etc., who
are allowed to draw funds from treasuries by Cheques for their disbursements,
assignments of funds are arranged by the Controller of Defence Account s and Cheque
books supplied to them for the drawal of funds. Generally each MES Officer will be
placed on account with one treasury but where necessary, the assignment may be
apportioned between two or more treasuries.
The A.O. will ensure that cash is not drawn from the treasury in excess of the actual
amount for which cash vouchers are passed for payment.
255
Every Officer having an assignment or imprest maintains a Cash Book on IAFW -2246.
Cash Book is the most important accounts record. On it the whole acco unts of the
division are based and all other accounts and returns are subsidiary to it. In this, all
transactions dealing with the receipt of Cash and all payments or disbursements will be
entered daily as they take place. The Cash Book is maintained under the supervision of A.O.
He will ensure that all are sufficiently detailed for facility of identification and allocation.
The Cash Book will be in two volumes, each volume to record the transactions for alternate
months.
The receipts for and payments from imprest will be recorded by the Imprest Holder in a Cash
Book. The amount of Imprest sanctioned will be noted on the top of the form in red ink before
the transactions for each month are recorded.
Miscellaneous Cash receipts, which should be accounted for in the Cash Book, should
not be utilised for expenditure but should be paid into the treasury immediately on a
receivable order.
Payments from cash assignment/imprest will be recorded on the credit side of the Cash Book
daily as disbursements are made.
The A.O. will check all entries in the Cash Book to see thatAn entry is made on the date of payment.
The amount shown as paid agrees with the amount mentioned in the Pay Order.
The reference to voucher No quoted in the Cash Book is correct.
The name of the payee is the same as that on the bill.
The payee has given a clear and proper receipt on the bill.
If the payment is made to an agent of a contractor, it will be seen that the agent holds
legal authority on behalf of the former.
(vii) The classification recorded in the last column is correct.
(viii) The totaling of each page of the Cash Book and carry forward thereof are done in ink
on the completion of each page.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Closing of Cash Book
The Cash Book will be closed on the 25th of each month (except for the month of March
when it will be closed on the last day of that month) when the balances, will be stick. The
amount of cash in hand will be stated in figures as well as in words and a certificate
endorsed by the M.E.S. Officer to the effect that the cash in hand has been c ounted and
found correct.
Monthly reconciliation statement in the following form:(i)
(ii)
(iii)
(iv)
(v)
Amount of cheques remaining unpresented on 25th of each month (except for the
month of March when it will on last day of that month).
Amount of the cheques drawn during the month.
Total
Amount of cheques en-cashed during the month.
Balance i.e. amount of cheques remaining un-cashed with details of cheques.
The original Cashbook together with necessary supporting vouchers will be submitted by the
A.O. to the CDA for audit.
256
Separate lists for the following categories of vouchers will be prepared and submitted along
with the Cash Book
Vouchers already pre-audited by the CDA.
Vouchers requiring post-audit by the CDA.
Vouchers retained by the A.O. for post-audit by the RAO at the time of his normal visit to
the MES Formations (i.e. Muster Rolls work charged Personnel Bills, Bills for the refund of rent
and vouchers for the amounts of which do not exceed Rs. 100).
(i)
(ii)
(iii)
The A.O. will also record a certificate to the effect that all vouchers in respect of the month have
been received by him and accounted for in the above lists, and that no voucher is left with the
MES Staff.
SCRUTINY OF CONTRACT
Scrutiny of contract documents when concluded of on standard forms, prior to acceptance is
not necessary by the CDA, but the original documents will be sent to him for post scrutiny
and custody. "CEs are empowered to alter standard contract documents at pre -tender
stage" to suit urgent requirements, particularly with ref. to security deposits, perce ntage
payments, speed of payments, issue of stores deviation limits and similar matters. They will
however, consult their Controllers of Defence Accounts wherever possible, where the
opinion of CE on alteration involves a major departure from an existing p rocedure, he shall
send a copy thereof to the E-inC's /Director General of Works for information.
In the cease of contracts accepted by the CEs and CsWE within their powers of
acceptances, the original documents together with notices of tender comparative statement,
specifications, drawings, etc. forming part of the contract agreement, will be forwarded
direct to the CDA by the Accepting Officer. A certified true copy of the accepted contract
agreement will also be sent to the CDA for check with the original documents and
transmission to the A.O. concerned duly attested.
In the case of contracts accepted by the GEs within their powers of acceptance of contracts,
the original and duplicate copies of contract deeds along with all the subsidiary documents
will be forwarded by the Executive to the A.O. and attached to the M.E.S. formation for
submission to the CDA.
The Bills of Quantitative and Schedules of Errors in the case of lump sum contracts are treated
as s' secret documents and are not passed on to the CDA.
Responsibility for checking contracts and Schedules of Errors with the Bill of Quantities rests
entirely with the S.W. The A.O. will, however, see that a certificate to the effect, that the
required check has been exercised is recorded on the contract agreement, by the surveyor
of works. Contract agreements should be concluded on the latest standard forms.
Before forwarding the contract documents to the C.D.A. for post scrutiny, the A.O. will see that
the documents are complete in, all respects and will also examine that primary requirement are
complied with.
The A.O. will see that the tenders have been kited in the manner laid down in the Regulations
when tenders are disposed with, he will see that a report of the circumstances has been made
to the CWE.
257
The A.O. will see that the C.D.A. is consulted for the following cases before the transactions are
concluded:
(i)
(ii)
(iii)
(iv)
(v)
Making a contract without calling for tenders including single tender contracts.
Accepting a tender other than the lowest or of unusual nature.
Inviting tenders for long term in preference to short-term contracts.
Making an amendment having a considerable financial effect on the contract.
Supply of electric energy and water to private buildings (i.e. buildings not owned,
hired, leased or appropriated or used by Government of India in the Ministry of
Defence) if the rates are not the All India recovery rates in force from time to time.
(vi) Accepting tenders containing freak rate or rejecting tenders containing freak rates which
otherwise was most acceptable.
He will verify that the contract has been accepted by the competent authority and
initialed and signed. He will see that the blank spaces in the contract are filled in
and the numbering and attesting of amendments etc. are complete. He will also see
that rates in Schedules 'B' and 'C' are correct and schedule ' A' is arithmetically correct in
regard to extension, total etc.
The A.O. will also see that when the tender accepted is said to be the lowest, it is
really the lowest. For this purpose, he will calculate and compare the financial effect of the
various contractors' tenders.
The amount of the contract will be checked with the sanctioned estimate or the
modified amount of previous contracts in the case of term and running contracts.
In cases where the A.O. finds that any deviations from or additions/ amendments to
standard clauses are necessitated by the special requirement of the particular contract or
local
conditions he should verify whether they have been approved by the competent
authority and if
they have considerable financial implications; he should draw the attention of the CDA
(Engineering Section) prominently to this factor for further necessary action. He shall
also see ifthere is any unusual provision in the contract which is likely to p resent
difficulties in actual application or that the contract is vague or ambiguous in any respect,
he will bring the matter to
the notice of the M.E.S. Officer and the CDA. It must be remembered that anything that
audit can do to put the M.E.S. Officers on their guard in time in respect of any matter
that is likely to give trouble, is far more useful than making adverse comments at a
subsequent date.
SCRUTINY OF AMENDMENT
1) An officer empowered to accept a contract is also competent to fix any rates in
that contract for items of work which are neither provided for, nor deducible
pro-rata from the rates in the Standard Schedule, i.e. in ny contract within his
powers of acceptance he may fix any Star Prices requires.
2) An officer competent to accept contract is also competent to mend it
provided that the contract as amended is within his powers, except
enhancement of contract rate, amendment issued after final bill signed by
contractor or change of specifications in respect of item containing freak
rates, where sanction of next higher authority is required.
258
3) Amendment will be referred for acceptance to the authority under whose power
the revised value of contract lies.
4) To safeguard against future claim from contractors for alleged idle labour or
additional establishment etc, the Deviation Order for extension of time will, in
addition to indicting the changes in dates of completion, include the
endorsement "Financial Effect — NIL".
SCRUTINY OF DEVIATION ORDER
1) The Deviation Order is given descriptive heading as provided for in Para 143 of E-
2)
3)
4)
5)
6)
7)
in-C Standing Orders and the manner in which the deviations are to be measured
and priced is stated;
The proposed deviation is within the terms of the Contract and does not have the
effect of changing the scope of the contract;
The deviation order has been signed by the Contractor and approved by the
Competent Authority.
The prorata/star rates, if any, have been checked by the SW/ASW. Such rates will be
checked 100% in audit.
As a result of the deviation order the value of the contract is not exceeded beyond
the original value plus the maximum deviation percentage admissible under the
terms of the contract.
The Deviation Order does not result in the value of the contract exceeding the
amount of the Technical Sanction/Administrative Approval.
Covering Deviation Orders are not preferred as a matter of course.
JOB ORDER & SUPPLY ORDER :
The purchase powers under Table B are subject to the stores rules in FR Part I Vol I. The powers
should be determined with reference to the value of a number of similar articles purchased at the same
time and not by the total cost of all the items purchased at a time. One supply order may be issued for
a group of dissimilar items though the total value of the supply order exceeds the direct purchase
powers of the authority issuing the supply order, if the value of each such item is within his powers. In
such a case a certificate that the items are dissimilar will be endorsed on the supply order.
Purchase orders for similar articles will not be split up to avoid the necessity of obtaining the sanction of
higher authority required with reference to the total amount of the orders.
For local purchase which is resorted to meet emergent requirement, inspection by AHSP may be dispensed
with. The accepting officer shall nominate technical officers by name or designation to carry out
inspections.
For direct purchase, for items exceeding value of Rs. 25,000/- each, where applicable, inspection by AHSP
will be arranged.
Inspection for building materials, consumable stores, repair work orders and fabrication orders shall be
carried out by the departmental officers nominated by name or designation by the Accepting officer.
There will be no Tender Purchase Committee for purchase upto Rs. 5 lakhs done upto the level of
Chief Engineer.]
259
Purchases will be made in the most economical manner and in accordance with the definite
requirements of the Service. Except for articles of proprietary nature purchased from accredited
agents, purchases will be made on the basis of competitive tenders whenever practicable.
Inter-Departmental Adjustments
All the CP Vrs are required to be adjusted promptly so that Construction Accounts may reflect
accurate expenditure on any work.
Transfer Entries (TBO)
TE ‘s are intended to transfer an item of receipt or expenditure for the accounts of
a work in progress or from one budget head to the account of another works or
budget head. They are necessary in order
i)
ii)
iii)
iv)
v)
To correct an error in allocation.
Revenue receipts not recovered in cash.
Amount debited or credited to Remittance Heads.
Transfer of stores within MES.
Adjustment of MRO /TR etc.
260
261
262
263
264
265
266
267
राजभाषा विभाग के कार्य
राजभाषासंबध
ं ीसांविधानिकऔरकािि
ू ीउपबंधोंकाअिप
ु ालिसनु िश्चितकरिेऔरसंघकेसरकारीकामकाजमें हहंदीकेप्रर्ोगकोबढािादे िेकेललएगह
ृ मंत्रालर्केएकस्ितंत्रविभागकेरूपमें जूि,1975में राजभाषाविभागकीस्था
पिाकीगईथी।उसीसमर्सेर्हविभागसंघकेसरकारीकामकाजमें हहंदीकाप्रगामीप्रर्ोगबढािेकेललएप्रर्ासरतहै ।भारतसरकार(कार्यआबंटि)निर्म,1961केअिस
ु ार,राजभाषा
विभागकोनिम्िकार्यसौंपेगएहैं
-
(1)
संविधािमें राजभाषासेसब
ं धं धतउपबंधोंतथाराजभाषाअधधनिर्म,1963(1963का19)केउपबंधों
काकार्ायन्िर्ि,उिउपबंधोंकोछोड़करश्जिकाकार्ायन्िर्िककसीअन्र्विभागकोसौंपागर्ाहै ।
(2)
ककसीराज्र्केउच्िन्र्ार्ालर्कीकार्यिाहीमें अग्र
ं ेजीभाषासेलभन्िककसीअन्र्भाषाकासीलमतप्रर्ोगप्रा
धधकृतकरिेकेललएराष्ट्रपनतकापि
य िम
ू अ
ु ोदि।
केंद्रसरकारकेकमयिाररर्ोंकेललएहहंदीलिक्षणर्ोजिाऔरपत्र-
(3)
पत्रत्रकाओंऔरउससेसब
ं धं धतअन्र्साहहत्र्केप्रकािि सहहतसंघकीराजभाषाकेरूपमें हहंदीकेप्रगामीप्र
र्ोगसेसब
ं धं धतसभीमामलोंकेललएकेंद्रीर्उत्तरदानर्त्ि।
(4)
संघकीराजभाषाकेरूपमें हहंदीकेप्रगामीप्रर्ोगसेसब
ं धं धतसभीमामलोंमें समन्िर्,श्जिमें प्रिासनिकि
ब्दािली,पाठय़वििरण,पाठय़पस्
ु तकें,प्रलिक्षणपाठय़क्रमऔरउिकेललएअपेक्षक्षतउपस्कर(मािकीकृ
तललवपसहहत) िालमलहैं।
(5)
केंद्रीर्सधििालर्राजभाषासेिाकागठिऔरसंिगयप्रबंधि।
(6)
केंद्रीर्हहंदीसलमनतसेसब
ं धं धतमामले।
(7)
विलभन्िमंत्रालर्ों/विभागोंद्िारास्थावपतहहंदीसलाहकारसलमनतर्ोंसेसब
ं धं धतकार्यकासमन्िर्।
268
(8)
केंद्रीर्अिि
ं धं धतमामले।
ु ादब्र्रू ोसेसब
(9)
हहंदीलिक्षणर्ोजिासहहतकेंद्रीर्हहंदीप्रलिक्षणसंस्थािसेसब
ं धं धत मामले।
(10)
क्षेत्रीर्कार्ायन्िर्िकार्ायलर्ोंसेसब
ं धं धतमामले।
(11)
संसदीर्राजभाषासलमनतसेसब
ं धं धतमामले।
संघ की राजभाषा िीनत
संघ की राजभाषा हहंदी और ललवप दे ििागरी है ।
संघ के िासकीर् प्रर्ोजिों के ललए प्रर्ोग होिे िाले
अंकों का रूप भारतीर् अंकों का अंतराष्ट्रीर् रूप है {संविधािका अिच्
ु छे द 343 (1)}
अनतररक्त अंग्रेजी भाषा का प्रर्ोग भी सरकारी कामकाज में ककर्ा जा सकता है
की धारा 3)
। परन्तु हहंदी के
(राजभाषा अधधनिर्म
।
संसद का कार्य हहंदी में र्ा अंग्रेजी में ककर्ा जा सकता है
। परन्तु राज्र्सभा के सभापनत महोदर् र्ा
लोकसभा के अध्र्क्ष महोदर् वििेष पररश्स्थनत में सदि के ककसी सदस्र् को अपिी मातभ
ृ ाषा में सदि
को संबोधधत करिे की अिम
ु नत दे सकते हैं । {संविधािका अिच्
ु छे द 120}
ककि प्रर्ोजिों के ललए केिल हहंदी का प्रर्ोग ककर्ा जािा है , ककि के ललए हहंदी और अंग्रज
े ी दोिों
भाषाओं का प्रर्ोग आिचर्क है और ककि कार्ों के ललए अंग्रेजी भाषा का प्रर्ोग ककर्ा जािा है , र्ह
राजभाषा अधधनिर्म1963, राजभाषा निर्म1976 और उिके अंतगयत समर् समर् पर राजभाषा विभाग,
गह
ृ मंत्रालर् की ओर से जारी ककए गए निदे िों द्िारा निधायररत ककर्ा गर्ा है
।
भारत के संविधाि में राजभाषा से संबंधधत भाग-17
अध्र्ार् 1--संघ की भाषा
अिच्
ु छे द 120. संसद् में प्रर्ोग की जािे िाली भाषा -(1) भाग 17 में ककसी बात के होते हुए
भी, ककं तु अिच्
ु छे द 348 के उपबंधों के अधीि रहते हुए, संसद् में कार्य हहंदी में र्ा अंग्रेजी में ककर्ा
जाएगा
269
परं त,ु र्थाश्स्थनत, राज्र् सभा का सभापनत र्ा लोक सभा का अध्र्क्ष अथिा उस रूप में कार्य करिे िाला
व्र्श्क्त ककसी सदस्र् को, जो हहंदी में र्ा अंग्रेजी में अपिी पर्ायप्त अलभव्र्श्क्त िहीं कर सकता है ,
अपिी मात-ृ भाषा में सदि को संबोधधत करिे की अिज्ञ
ु ा दे सकेगा ।
(2) जब तक संसद् विधध द्िारा अन्र्था उपबंध ि करे तब तक इस संविधाि के प्रारं भ से पंद्रह िषय की
अिधध की समाश्प्तके पचिात ् र्ह अिच्
ु छे द ऐसे प्रभािी होगा मािो
“र्ा अंग्रेजी में ”
िब्दों का उसमें से
लोप कर हदर्ा गर्ा हो ।
अिुच्छे द 210:विधाि-मंडल में प्रर्ोग की जािे िाली भाषा -(1) भाग 17 में ककसी बात के
होते हुए भी, ककं तु अिच्
ु छे द 348 के उपबंधों के अधीि रहते हुए, राज्र् के विधाि-मंडल में कार्य राज्र्
की राजभाषा र्ा राजभाषाओं में र्ा हहंदी में र्ा अंग्रज
े ी में ककर्ा जाएगा
परं त,ु र्थाश्स्थनत, विधाि सभा का अध्र्क्ष र्ा विधाि पररषद् का सभापनत अथिा उस रूप में कार्य करिे
िाला व्र्श्क्त ककसी सदस्र् को, जो पि
ू ोक्त भाषाओं में से ककसी भाषा में अपिी पर्ायप्त अलभव्र्श्क्त िहीं
कर सकता है, अपिी मातभ
ु ा दे सकेगा ।
ृ ाषा में सदि को संबोधधत करिे की अिज्ञ
(2)
जब तक राज्र् का विधाि-मंडल विधध द्िारा अन्र्था उपबंध ि करे तब तक इस संविधाि के
प्रारं भ से पंद्रह िषय की अिधध की समाश्प्त के पचिात ् र्ह अिच्
ु छे द ऐसे प्रभािी होगा मािो
“र्ा अंग्रेजी
में ” िब्दों का उसमें से लोप कर हदर्ा गर्ा हो :
परं तु हहमािल प्रदे ि, मणणपरु , मेघालर् और त्रत्रपरु ा राज्र्ों के विधाि-मंडलों के संबध
ं में , र्ह खंड इस
प्रकार प्रभािी होगा मािो इसमें आिे िाले “पंद्रह िषय”िब्दों के स्थाि पर
“पच्िीस िषय”
िब्द रख हदए
गए हों :
परं तु र्ह और कक
अरूणािल प्रदे ि, गोिा और लमजोरम राज्र्ों के विधाि-मंडलों के संबध
ं में र्ह खंड
इस प्रकार प्रभािी होगा मािो इसमें आिे िाले “पंद्रह िषय ”िब्दों के स्थाि पर “िालीस
िषय ”िब्द रख
हदए गए हों ।
अिुच्छे द 343. संघ की राजभाषा-(1) संघ की राजभाषा हहंदी और ललवप दे ििागरी होगी, संघ के िासकीर् प्रर्ोजिों के ललए प्रर्ोग होिे
िाले अंकों का रूप भारतीर् अंकों का अंतरायष्ट्रीर् रूप होगा।
270
(2) खंड (1) में ककसी बात के होते हुए भी, इस संविधाि के प्रारं भ से पंद्रह िषय की अिधध तक संघ के
उि सभी िासकीर् प्रर्ोजिों के ललए अंग्रेजी भाषा का प्रर्ोग ककर्ा जाता रहे गा श्जिके ललए उसका ऐसे
प्रारं भ से ठीक पहले प्रर्ोग ककर्ा जा रहा था :
परन्तु राष्ट्रपनत उक्त अिधध के दौराि, आदे ि द्िारा, संघ के िासकीर् प्रर्ोजिों में से ककसी के ललए
अंग्रेजी भाषा के अनतररक्त हहंदी भाषा का और भारतीर् अंकों के अंतरायष्ट्रीर् रूप के अनतररक्त दे ििागरी
रूप का प्रर्ोग प्राधधकृत कर सकेगा।
(3) इस अिच्
ु छे द में ककसी बात के होते हुए भी, संसद् उक्त पन्द्रह िषय की अिधध के पचिात ्, विधध
द्िारा
(क) अंग्रेजी भाषा का, र्ा
(ख) अंकों के दे ििागरी रूप का,
ऐसे प्रर्ोजिों के ललए प्रर्ोग उपबंधधत कर सकेगी जो ऐसी विधध में विनिहदयष्ट्ट ककए जाएं।
अिच्
ं में आर्ोग और संसद की सलमनत-ु छे द 344. राजभाषा के संबध
(1) राष्ट्रपनत, इस संविधाि के प्रारं भ से पांि िषय की समाश्प्तपर और तत्पचिात ् ऐसे प्रारं भ से दस िषय
की समाश्प्त पर, आदे ि द्िारा, एक आर्ोग गहठत करे गा जो एक अध्र्क्ष और आठिीं अिस
ु ि
ू ी में
विनिहदयष्ट्ट विलभन्ि भाषाओं का प्रनतनिधधत्ि करिे िाले ऐसे अन्र् सदस्र्ों से लमलकर बिेगा श्जिको
राष्ट्रपनत निर्क्
ु त करे और आदे ि में आर्ोग द्िारा अिस
ु रण की जािे िाली प्रकक्रर्ा पररनिश्चित की
जाएगी।
(2) आर्ोग का र्ह कतयव्र् होगा कक िह राष्ट्रपनत को-(क) संघ के िासकीर् प्रर्ोजिों के ललए हहंदी भाषा के अधधकाधधक प्रर्ोग,
(ख) संघ के सभी र्ा ककन्हीं िासकीर् प्रर्ोजिों के ललए अंग्रेजी भाषा के प्रर्ोग पर निबंधिों,
(ग) अिच्
ु छे द 348 में उश्ललणखत सभी र्ा ककन्हीं प्रर्ोजिों के ललए प्रर्ोग की जािे िाली भाषा,
(घ) संघ के ककसी एक र्ा अधधक विनिहदय ष्ट्ट प्रर्ोजिों के ललए प्रर्ोग ककए जािे िाले अंकों के रूप,
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(ड़) संघ की राजभाषा तथा संघ और ककसी राज्र् के बीि र्ा एक राज्र् और दस
ू रे राज्र् के बीि पत्राहद
की भाषा और उिके प्रर्ोग के संबध
ं में राष्ट्रपनत द्िारा आर्ोग को निदे लित ककए गए ककसी अन्र्
विषर्, के बारे में लसफाररि करे ।
(3) खंड (2) के अधीि अपिी लसफाररिें करिे में, आर्ोग भारत की औद्र्ोधगक, सांस्कृनतक और
िैज्ञानिक उन्िनत का और लोक सेिाओं के संबध
ं में अहहंदी भाषी क्षेत्रों के व्र्श्क्तर्ों के न्र्ार्संगत दािों
और हहतों का सम्र्क ध्र्ाि रखेगा।
(4) एक सलमनत गहठत की जाएगी जो तीस सदस्र्ों से लमलकर बिेगी श्जिमें से बीस लोक सभा के
सदस्र् होंगे और दस राज्र् सभा के सदस्र् होंगे जो क्रमिः लोक सभा के सदस्र्ों और राज्र् सभा के
सदस्र्ों द्िारा आिप
ु ानतक प्रनतनिधधत्ि पद्धनत के अिस
ु ार एकल संक्रमणीर् मत द्िारा नििायधित होंगे।
(5) सलमनत का र्ह कतयव्र् होगा कक िह खंड (1)के अधीि गहठत आर्ोग की लसफाररिों की परीक्षा करे
और राष्ट्रपनत को उि पर अपिी रार् के बारे में प्रनतिेदि दे ।
(6) अिच्
ु छे द 343 में ककसी बात के होते हुए भी, राष्ट्रपनत खंड (5) में निहदय ष्ट्ट प्रनतिेदि पर वििार
करिे के पचिात ् उस संपण
ू य प्रनतिेदि के र्ा उसके ककसी भाग के अिस
ु ार निदे ि दे सकेगा।
अध्र्ार् 2- प्रादे लिक भाषाएं
अिुच्छे द 345. राज्र् की राजभाषा र्ा राजभाषाएं-अिच्
ु छे द 346 और अिच्
ु छे द 347 के उपबंधों के अधीि रहते हुए, ककसी राज्र् का विधाि-मंडल, विधध
द्िारा, उस राज्र् में प्रर्ोग होिे िाली भाषाओं में से ककसी एक र्ा अधधक भाषाओं को र्ा हहंदी को उस
राज्र् के सभी र्ा ककन्हीं िासकीर् प्रर्ोजिों के ललए प्रर्ोग की जािे िाली भाषा र्ा भाषाओं के रूप में
अंगीकार कर सकेगाः
परं तु जब तक राज्र् का विधाि-मंडल, विधध द्िारा, अन्र्था उपबंध ि करे तब तक राज्र् के भीतर उि
िासकीर् प्रर्ोजिों के ललए अंग्रेजी भाषा का प्रर्ोग ककर्ा जाता रहे गा श्जिके ललए उसका इस संविधाि
के प्रारं भ से ठीक पहले प्रर्ोग ककर्ा जा रहा था।
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अिुच्छे द 346. एक राज्र् और दस
ू रे राज्र् के बीि र्ा ककसी राज्र् और संघ के बीि
पत्राहद की राजभाषा-संघ में िासकीर् प्रर्ोजिों के ललए प्रर्ोग ककए जािे के ललए तत्समर् प्राधधकृत भाषा, एक राज्र् और
दस
ू रे राज्र् के बीि तथा ककसी राज्र् और संघ के बीि पत्राहद की राजभाषा होगी :
परं तु र्हद दो र्ा अधधक राज्र् र्ह करार करते हैं कक उि राज्र्ों के बीि पत्राहद की राजभाषा हहंदी भाषा
होगी तो ऐसे पत्राहद के ललए उस भाषा का प्रर्ोग ककर्ा जा सकेगा।
अिुच्छे द 347. ककसी राज्र् की जिसंख्र्ा के ककसी अिुभाग द्िारा बोली जािे िाली
भाषा के संबंध में वििेष उपबंध-र्हद इस निलमत्त मांग ककए जािे पर राष्ट्रपनत का र्ह समाधाि हो जाता है कक ककसी राज्र् की
जिसंख्र्ा का पर्ायप्त भाग र्ह िाहता है कक उसके द्िारा बोली जािे िाली भाषा को राज्र् द्िारा
मान्र्ता दी जाए तो िह निदे ि दे सकेगा कक ऐसी भाषा को भी उस राज्र् में सियत्र र्ा उसके ककसी भाग
में ऐसे प्रर्ोजि के ललए, जो िह विनिहदय ष्ट्ट करे , िासकीर् मान्र्ता दी जाए।
अध्र्ार् 3 -उच्ितम न्र्ार्ालर्, उच्ि न्र्ार्ालर्ों आहद की भाषा
अिच्
ु छे द 348. उच्ितम न्र्ार्ालर् और उच्ि न्र्ार्ालर्ों में और अधधनिर्मों,
विधेर्कों आहद के ललए प्रर्ोग की जािे िाली भाषा-(1) इस भाग के पि
य ामी उपबंधों में ककसी बात के होते हुए भी, जब तक संसद् विधध द्िारा अन्र्था
ू ग
उपबंध ि करे तब तक-(क) उच्ितम न्र्ार्ालर् और प्रत्र्ेक उच्ि न्र्ार्ालर् में सभी कार्यिाहहर्ां अंग्रेजीभाषा में होंगी,
(ख) (i) संसद् के प्रत्र्ेक सदि र्ा ककसी राज्र् के विधाि-मंडल के सदि र्ा प्रत्र्ेक सदि में परु ःस्थावपत
ककए जािे िाले सभी विधेर्कों र्ा प्रस्तावित ककए जािे िाले उिके संिोधिों के,
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(ii) संसद र्ा ककसी राज्र् के विधाि-मंडल द्िारा पाररत सभी अधधनिर्मों के और राष्ट्रपनत र्ा ककसी
राज्र् के राज्र्पाल द्िारा प्रख्र्ावपत सभी अध्र्ादे िों के ,और
(iii) इस संविधाि के अधीि अथिा संसद र्ा ककसी राज्र् के विधाि-मंडल द्िारा बिाई गई ककसी विधध
के अधीि निकाले गए र्ा बिाए गए सभी आदे िों, निर्मों, विनिर्मों और उपविधधर्ों के, प्राधधकृत पाठ
अंग्रेजी भाषा में होंगे।
(2) खंड(1) के उपखंड (क) में ककसी बात के होते हुए भी, ककसी राज्र् का राज्र्पाल राष्ट्रपनत की पि
ू य
सहमनत से उस उच्ि न्र्ार्ालर् की कार्यिाहहर्ों में, श्जसका मख्
ु र् स्थाि उस राज्र् में है, हहन्दी भाषा
का र्ा उस राज्र् के िासकीर् प्रर्ोजिों के ललए प्रर्ोग होिे िाली ककसी अन्र् भाषा का प्रर्ोग प्राधधकृत
कर सकेगाः
परं तु इस खंड की कोई बात ऐसे उच्ि न्र्ार्ालर् द्िारा हदए गए ककसी निणयर्, डडक्री र्ा आदे ि को लागू
िहीं होगी।
(3) खंड (1) के उपखंड (ख) में ककसी बात के होते हुए भी, जहां ककसी राज्र् के विधाि-मंडल िे,उस
विधाि-मंडल में परु ःस्थावपत विधेर्कों र्ा उसके द्िारा पाररत अधधनिर्मों में अथिा उस राज्र् के
राज्र्पाल द्िारा प्रख्र्ावपत अध्र्ादे िों में अथिा उस उपखंड के पैरा (iv) में निहदय ष्ट्ट ककसी आदे ि, निर्म,
विनिर्म र्ा उपविधध में प्रर्ोग के ललए अंग्रेजी भाषा से लभन्ि कोई भाषा विहहत की है िहां उस राज्र्
के राजपत्र में उस राज्र् के राज्र्पाल के प्राधधकार से प्रकालित अंग्रज
े ी भाषा में उसका अिि
ु ाद इस
अिच्
ु छे द के अधीि उसका अंग्रेजी भाषा में प्राधधकृत पाठ समझा जाएगा।
अिुच्छे द 349. भाषा से संबंधधत कुछ विधधर्ां अधधनिर्लमत करिे के ललए वििेष
प्रकक्रर्ा-इस संविधाि के प्रारं भ से पंद्रह िषय की अिधध के दौराि, अिच्
ु छे द 348 के खंड (1) में उश्ललणखत ककसी
प्रर्ोजि के ललए प्रर्ोग की जािे िाली भाषा के ललए उपबंध करिे िाला कोई विधेर्क र्ा संिोधि संसद
के ककसी सदि में राष्ट्रपनत की पि
ू य मंजूरी के त्रबिा परु ःस्थावपत र्ा प्रस्तावित िहीं ककर्ा जाएगा और
राष्ट्रपनत ककसी ऐसे विधेर्क को परु ःस्थावपत र्ा ककसी ऐसे संिोधि को प्रस्तावित ककए जािे की मंजूरी
अिच्
ु छे द 344 के खंड (1) के अधीि गहठत आर्ोग की लसफाररिों पर और उस अिच्
ु छे द के खंड (4) के
अधीि गहठत सलमनत के प्रनतिेदि पर वििार करिे के पचिात ् ही दे गा, अन्र्था िहीं।
अिुच्छे द 351. हहंदी भाषा के विकास के ललए निदे ि-274
संघ का र्ह कतयव्र् होगा कक िह हहंदी भाषा का प्रसार बढाए, उसका विकास करे श्जससे िह भारत की
सामालसक संस्कृनत के सभी तत्िों की अलभव्र्श्क्त का माध्र्म बि सके और उसकी प्रकृनत में हस्तक्षेप
ककए त्रबिा हहंदस्
ु थािी में और आठिीं अिस
ु ि
ू ी में विनिहदय ष्ट्ट भारत की अन्र् भाषाओं में प्रर्क्
ु त रूप, िैली
और पदों को आत्मसात करते हुए और जहां आिचर्क र्ा िांछिीर् हो िहां उसके िब्द-भंडार के ललए
मख्
ु र्तः संस्कृत से और गौणतः अन्र् भाषाओं से िब्द ग्रहण करते हुए उसकी समद्
ृ धध सनु िश्चित करे ।
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