New Delhi
National Conference on “Accounting Reforms in Indian Railways - A Strategic Mission for Sustainable Growth” was held today i.e. 20th December 2016 at Vigyan Bhawan, New Delhi. The Conference was organized by Ministry of Railways in partnership with Confederation of Indian Industry (CII).
Union Minister of Finance & Corporate Affairs Arun Jaitley was the Chief Guest at the conference. Minister of Railways Suresh Prabhakar Prabhu was the Guest of Honour and delivered the keynote address at the conference.
Shahzad Shah, other Railway Board Members, Adviser (Accounting Reforms) & Mission Director (“Mission Beyond Bookkeeping”) Naresh Salecha and other senior Government Officials were present in the conference. The conference was also attended by a wide range of stakeholders of Indian Railways including the members of Railway Board, representatives from the office of the Comptroller and Auditor General of India, Government Accounting Standards Advisory Board, Controller General of Accounts, Confederation of Indian Industry (CII), Institute of Chartered Accountants of India (ICAI), leaders from industry, financial institutions and profession.
Minister of Railways Suresh Prabhakar Prabhu said that Accounting system is like a health card of an organization which reflects its financial health. Thats was the reason of announcing the mission “Beyond Bookkeeping” as one of the mission of the Railways in the 1st Rail Budget of this Government. Indian Railways should adopt a cost centre and profit centre approach to ensure correct allocation and utilization of resources.
He also said that Outcome Budgeting doesn't make sense if the outcome is not included in the Budget ab initio.
Benefits to stakeholders
● Accounting reforms focusing on right accounting, right costing and right pricing would enable provision of improved services and availability of world-class transportation system to customers
● Accrual accounting coupled with variable marginal costing technique under Accounting Reforms, Indian Railways would be able to identify money makers/ money losers resulting in reduction in transportation cost which would benefit the industry and citizens
● Accounting Reforms would support decision-making and strategic management for the leadership of Indian Railways
● Segment wise business reporting would help in knowing profitability of different lines of business/ lines of services
● Accounting Reforms would facilitate effective resource mobilisation considering availability of limited resources
● Determination of true cost of services- online availability of costing data would enhance transparency
● Investors (including lenders) would be able to make better assessment of the financial health of the organisation- on account of availability of comprehensive, meaningful accrual based financial statements with adequate disclosures
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