Glossary Of Terms Operating Ratio
Source-Finance Code Chapter-III
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Earning Side
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Expenditure Side
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Sr. No.
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Particulars
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Formula
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Amount
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Sr. No.
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Particulars
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Formula
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Amount
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1
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Coaching Revenue
(Less Refund)
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10
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Ordinary Working
Expenses= Expenses booked
under final heads, excluding appropriation to Depreciation Reserve Fund, and
Pension Fund. (Payments on account of accident compensation and Pensionary
Payments should also be excluded)
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2
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Goods Revenue
(Less Refund)
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11
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Appropriation to DRF
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3
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Traffic Revenue
(Less Refund)
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01+02
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0
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12
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Appropriation to
Pension
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4
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Sundry Revenue
(Less Refund) =Other than Traffic Revenue
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13
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Gross Working
Exp=
True expenses in an accounting period whether or not actually disbursed.
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10+11+12
Operating
Ratio=13/5
*100
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5
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Gross Revenue= true or accrued Revenue in an accounting period whether
actually realized.
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03+04
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6
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Traffic Suspense
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14
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Suspense
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7
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Gross Receipt- Revenue actually realized during an accounting
period.
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05+06
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15
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Gross Expenditure= Working
Expenses actually disbursed during an accounting period.
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13+14
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8
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Misc. Receipt= Guarantee
recoverable from State Governments + Other Miscellaneous Receipts, such as
Government share of surplus profits, sale of land of subsidized companies,
receipts from surcharge on Passenger fares, etc.
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16
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Misc. Exp.= Surveys + Land for subsidized companies; subsidy + other
Miscellaneous Railway expenditure, Appropriations to Pension Fund relating to
Railway Board and Miscellaneous establishments booked under Major Hear 3001
and payments to worked lines.
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9
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Total Revenue Receipt
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07+08
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17
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Total Revenue
Exp.
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15+16 Net
Revenue Receipt=9- 17
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*
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Actual Expenditure
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OWE+SUSPENCE
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So OWE=Actual Exp.-Suspense
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*Operating Ratio=GWE/GE*100
*Net Revenue=Gross Revenue-Gross Working Exp.
*Net Receipts=Total Revenue Receipt-Total Revenue Exp.
OPERATING RATIO SOLVED QUESTIONS
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OPRATING RATIO
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2017-18 Question
Paper
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1. Operating Ratio
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10
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2.Net Earnings
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5
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3.Surplus/Shortfall
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5
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20
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Sr.No.
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Particulars
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Amount (Rs in cr.)
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1
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Gross receipts
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2000
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2
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Suspense Earnings
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180
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3
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Miscellaneous Receipts
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80
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*4
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Actual Expenditure
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1595
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5
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Suspense Expenses
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30
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6
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Appropriation to DRF
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60
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7
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Appropriation to Pension Fund
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80
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8
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Miscellaneous Expenditure
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20
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9
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Dividends Payable
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60
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10
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Appropriation to Development
fund
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144
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11
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Appropriation to R.S.F
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98
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12
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Appropriation to Capital Fund
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144
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Answer
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Earning Side
|
Expenditure Side
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|
Sr. No.
|
Particulars
|
Formula
|
Amount
|
Sr. No.
|
Particulars
|
Formula
|
Amount
|
|
1
|
Coaching Earning
(Less Refund)
|
|
|
10
|
Ordinary Working
Expenses
|
|
1565
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2
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Goods Earning
(Less Refund)
|
|
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11
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Appropriation to DRF
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|
60
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3
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Traffic Earning
(Less Refund)
|
01+02
|
0
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12
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Appropriation to
Pension
|
|
80
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4
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Sundry Earning
(Less Refund)
|
|
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13
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Gross Working
Exp.
|
10+11+12
Operating
Ratio=13/5
*100
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1705
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5
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Gross Earning
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03+04
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1820
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6
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Suspense
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180
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14
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Suspense
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30
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7
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Gross Receipt
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05+06
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2000
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15
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Gross Expenditure
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13+14
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1735
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8
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Misc. Receipt
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|
80
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16
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Misc. Exp.
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20
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9
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Total Revenue Receipt
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07+08
|
2080
|
17
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Total Revenue
Exp.
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15+16 Net
Revenue Receipt=9- 17
|
1755
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*
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Actual Expenditure
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OWE+SUSPENCE
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So OWE=Actual Exp.-Suspense
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1595-30
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1565
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Ans.1
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Operating Ratio
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93.681319
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Gross Working
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Exp./Gross
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1705/18
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Earning*100
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20*100
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Ans.2
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Net Earning
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Gross Earning-Gross Working Exp.
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1820-1705
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115
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Ans.3
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Surplus/Shortfall
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Net Revenue-Dividend
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325-60
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265
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*
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Net Revenue
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Total Revenue
Receipt-Total Revenue Exp.
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2080-1755
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325
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2016 Question Paper
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OPRATING RATIO
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2016 Question
Paper
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1.Total Working
Expenses
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2. Operating Ratio
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3.Net Revenue
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4.Surplus/Shortfall
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Sr. No.
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Particulars
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Amount (Rs in crore)
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1
|
Gross Receipts
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12005
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2
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Suspense earning
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3
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3
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Misc. receipts
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101
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4
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Ordinary Working
Expenses
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8812
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5
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Suspense expenses
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19
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6
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Appropriation to DRF
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473
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7
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Appropriation to Pension Fund
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1948
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8
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Misc. Expenditure
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7
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9
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Dividends payable
|
228
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ANSWER
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Earning Side
|
Expenditure Side
|
|
Sr. No.
|
Particulars
|
Formula
|
Amount
|
Sr.No.
|
Particulars
|
Formula
|
Amount
|
|
1
|
Coaching Earning
(Less Refund)
|
|
|
10
|
Ordinary Working
Expenses
|
|
8812
|
|
2
|
Goods Earning
(Less Refund)
|
|
|
11
|
Appropriation to
DRF
|
|
473
|
|
3
|
Traffic Earning
(Less Refund)
|
01+02
|
0
|
12
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Appropriation to
Pension
|
|
1948
|
|
4
|
Sundry Earning
(Less Refund)
|
|
|
13
|
Gross Working
Exp.
|
10+11+12
Operating
Ratio=13/ 5*100
|
11233
|
|
5
|
Gross Earning
|
03+04
|
12002
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6
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Suspense
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3
|
14
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Suspense
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19
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7
|
Gross Receipt
|
05+06
|
12005
|
15
|
Gross Expenditure
|
13+14
|
11252
|
|
8
|
Misc. Receipt
|
|
101
|
16
|
Misc. Exp.
|
|
7
|
|
9
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Total Revenue
Receipt
|
07+08
|
12106
|
17
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Total Revenue
Exp.
|
15+16
Net Revenue/
Receipt-
=9-17
|
11259
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Ans.1
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Operating Ratio
|
Gross Working Exp./Gross Earning*100
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11233/12002*100
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93.59
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Ans. 2
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Net Receipt
|
Total Revenue
Receipts-Net Receipts
|
12106-11259
|
847
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Ans.3
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Surplus/Shortfall
|
Net Revenue-Dividend
|
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847-228
|
619
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Ans.4
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Total Working
Expenses
|
OWE+App. To DRF+App. To Pension
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8812+473+1948
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11233
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