Chapter: - Four

-: Conclusion of the Study: -

Chapter Plannings: -
Findings of the Study
Limitations of the Study
Suggestions for Further Studies
Conclusions
Bibliography

4.1: Findings of the Study:

This section discusses the objectives pertaining to research questions presented in
the Chapter one in detail. The aim of this section is to explore the extent to which the
objectives were achieved in the study to comprehend the specific outcome of each objective.
Transport systems are the Brain and Brawn of an economy of any country and Indian
Railways does so, to keep maintaining the economic stability of India.
This sector is fully a Government Sectors, and managed by the Government of India and
its employees systematically as mentioned in the “Organizational Structures” and its
“Apex Management”.
The company, follows up “Cash-Basis” accounting procedures, but it is going to approve
“Accrual-Basis” of accounting techniques in the near future.
This company {Indian Railways}, had lost its power to prepare “Rail Budgets”
separately as its budget had been merged with the general budgets
The company has once considered as that this PSU can never be able to make profit. But
after 1960s, it initiated to keep beating other sectors, generating more net surpluses and
thus it proved the earlier concept about this PSU wrong.
This Company, runs both the services one is “Public non-profit seeking Services” and
“commercial services”.
The company, introduced many schemes to modernize the overall journey experiences.
The rise in freight revenue — the main plank of the IR financial turnaround — was
facilitated by the increased domestic demand for coal (for electricity generation), for
cement (for construction) and pig iron (for steel plants) due to economic growth. There
was also an increase in the iron ore for exports (mainly to the Chinese market).
In the Non-Suburban Zones, the levels of the Passenger Earnings are representing high
achievement, which denotes a constant level of financial growth.
This company has decided to tie up with other rail transport system running abroad to
get financial assistances for the future transport project of IR (like, Indo-Japan
Collaboration to succeed “Semi-High-Speed Bullet Train Project”).
The decline in overall interest rates and liberalisation and expansion of financial markets
towards abroad helped the IR to raise external resources with ease.

4.2: Limitations of the Study:

The study suffered from many limitations, stated as under: -

 Shortage of Time: If there were a lot of time available to study upon this topic,
different aspects of this topic can be elaborately discussed.
 Lack of Information: The data and information represented in this project is mainly
secondary data, which may not be completely accurate and the study was conducted
taking a limited short period of 5 years and hence, it was unable to represent complete
scenario of annual financial report of Indian Railways, it only reflected a partial view.
 Incomplete Accounting Procedures: Indian Railways does not maintain “Accrual-
Basis” of accounting and hence, financial statements, in this regard, displays only one
side of accounting.
 Problem in proper valuation of Fixed Assets: In the financial statements, it couldn’t
be determined that how many fixed assets, the Indian Railways occupies. So, we were
unable to valuate properly the price of the fixed assets in this case.
 Usage of simple statistical tools: Many other tools could be used to minutely clarify
the rise and downfalls and profit and losses during the financial activities.
 Limited comprehension: The study suffers from limited understandings of the subject.

4.3: Suggestions for Further Studies:

o The study can be conducted taking more financial years.
o Graph Charts had followed the few selected items mentioned in the tables, which can be
further extended for overall clear understandings.
o Financial analysis can be done taking many aspects for in-depth view and more
advanced tools can be used up for perfect presentation.
o The study was grossly followed the indigenous aspect of IR. This study can be further
extended to the International aspects to deliberate Indian Railways’ collaborations with
foreign rail systems in-depth and financial managements, in this regard.
o Further studies on the topic can be conducted on:
Separate financial report of different zones.
The complementarities -rail/road and rail/airlines.
Freight transportation through railways.

4.4: Conclusions:
Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround
from a low performing organisation to a high performing one in about five years. The
foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the
former Railway Minister, Mr Yadav, implicitly accepted in his first budget speech. It goes
to the credit of Mr Yadav that he not only continued those policies (though initiated by a
rival political party member) but importantly ensured that they produced results. This
demonstrates that the organisation moved away from past malaise of politicisation of
decision-making processes and policies, to a more corporate minded commercial focus. It
adopted three major strategies for a turnaround. Through the retrenchment strategy it was
successful in reducing the operating cost. It focussed on dynamic pricing and customer
centric sub-strategy within the overall repositioning strategy to significantly increase
revenue — in particular the freight revenue. Reorganisation strategies like human resource
development initiatives and achievement of efficient outcomes through decentralisation of
authority and responsibility aided the IR turnaround. Importantly, the IR benefited from
favourable macro-economic environment like increase in the growth rate of the economy
and the growth of exports. The implication of our study is that an organisation’s
turnaround success needs to be put in a much wider context. It could be due to ‘good luck’
and not due to ‘good management’ alone as most of the extant literature tends to suggest.

Bibliography: -
The followings are the webpage references from
where the Study Materials had been found out: -

I.Introductions as regards the Indian Railways:

http://shodhganga.inflibnet.ac.in/bitstream/10603/186017/6/06_chapter%201.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/37239/6/chapter4.pdf

https://www.iracst.org/ijcbm/papers/vol5no52016/16vol5no5.pdf
II. Reviews of the Literatures (Writers’ Names, Years of
research & Abstracts):
https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/37239/4/chapter2.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/54213/8/08_chapter%202.pdf
III. Objectives of the study:
{Points no. 1 & 9}:
http://shodhganga.inflibnet.ac.in/bitstream/10603/132637/7/07_chapter1.pdf
{Point no. 3 Only}:
 http://shodhganga.inflibnet.ac.in/bitstream/10603/24250/17/17_abstract.pdf
{Point no. 5 Only}:

http://shodhganga.inflibnet.ac.in/bitstream/10603/26024/14/14_summary.pdf

IV. Introductory Statements to the Indian Railways:

http://shodhganga.inflibnet.ac.in/bitstream/10603/36580/9/09_chapter01.pdf
V. An Overview of the Indian Railways:

http://shodhganga.inflibnet.ac.in/bitstream/10603/36580/9/09_chapter01.pdf

https://irtpms.in/site/wp-content/uploads/2017/09/general-overview.pdf

https://en.wikipedia.org/wiki/Future_of_rail_transport_in_India
VI. The Advantages of the Indian Railways:

http://www.yourarticlelibrary.com/railways/indian-railway-significance-and-problems-
of-indian-railways/14136
VII. The Drawbacks of the Indian Railways:

http://www.yourarticlelibrary.com/geography/transportation/advantages-and-
disadvantages-of-railway-transport/42134

http://www.shareyouressays.com/knowledge/10-major-problems-faced-by-indian-
railway/110874
VIII. Collected Data & Information as for the 5 Years’
Financial Activities and Trends relating to the Indian
Railways:
{2012-13}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?
lang=0&id=0,1,304,366,554,1451,1453
{2013-14}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?
lang=0&id=0,1,304,366,554,1554,1558
{2014-15}:

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?
lang=0&id=0,1,304,366,554,1683,1687
{2015-16}:

http://indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/2015-
2016/Annual%20Report%20English_2015-16.pdf
{2016-17}:
 http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/IRS
P_2016-17/Facts_Figure/Indian%20Railways%20Annual%20Report_Accounts
%20English%202016-17.pdf

IX. Findings of the Studies:

https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf
X.Suggestions for the Further Studies:

http://shodhganga.inflibnet.ac.in/bitstream/10603/26024/14/14_summary.pdf
XI. Conclusions of the Studies:

https://crawford.anu.edu.au/acde/asarc/pdf/papers/2008/WP2008_06.pdf

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