CHAPTER.

INTRODUCTION

INTRODUCTION 1.1: BRIEF HISTORY OF TRANSPORT INDUSTRY

Transportation in India is a large and varied sector of the economy. Modes of conveyance for transport of goods in India range from peoples heads and rickshaws to truck and railroads cars. The national railroad was the major freight hauler independence, but road transport in India grew rapidly after 1947 both rail and road transport important.

The share of India transportation investments in total public investment declined during the period from the early 1950s to the early 1980s, real public transportation investment also declined during much of that period because of the need for funds in the rest of the economy. As a consequence, by the early 1980s the system in India was barely meeting the needs of the nation or preparing for future Economic growth.

Many roads, for example, were breaking up because of overuse and lack of maintenance, rail roads required new track and rolling stock. Ports needed equipment and facilities, particularly for bulk and container cargo, and at many airports national civil airlines needed supporting equipment, including provision for instruments landings. The government planned to devote 19% of the eight five year plan (1992 to 1996) budget to transportation and communication, up fro5 devoted to the sector during the 7th plan.

Although there is a large private sector involvement in transportation in India, the government plays a large regulatory and developmental role,. The central government has ministries to handle civil aviation, Railroads and surface counterpart agencies are found at the state and union territory level. Improving the entire transportation sector in the late 1990s in the ability of the sector to adjust to the central governments national reform initiatives, including privatization, deregulation, and reduced subsidies.

The sector must also adjust to foreign trend expansion, demographic pressures increasing urbanization, technological change and obsolescence, energy availability, and environmental and public safety concerns.

India has a major railroad, equipment production industry. Although some state of the art electrical capacity to meet most of its standard locomotive and passengers, car and ancillary equipment needs and has made plans to export locomotives. The research design and standards organization of Indian railways engages in research and simulations aimed at further improving the quality of domestic achievements. This has included high speed passengers train (up to 140 kms per hrs) and freight trains (up to 80 kms per hr) and solid state signaling equipment. Because some 2/3 of the nations fright is carried by train, there is a serious freight car shortage. To overcome this and other industry related transportation problems, Indian railways envision having to import up to 5000 freight cars a year.

1.2: GROWTH OF TRANSPORT INDUSTRY

Mass rapid transit systems are operational in Mumbai, Kolkata, Chennai and Delhi. The first rapid transit system in India, Mumbai railway, was established in Mumbai in 1867. The Mumbai suburban railway commutes 6.1 million passengers everyday and boats to have the highest passenger density in the world. Rapid transit systems are under construction in Hyderabad and Bangalore. To decongest Mumbai Growing traffic, another metro system is construction. Presently three metro lines are operational in Delhi and more are under construction. Rapid transit systems are proposed in NOIDA, GAO, THANE, PUNE, AHAMADABAD and KOCHI. Next only to railways the most preferred long distance transport option for the public are the buses. Most of the state Road transport co operations have buses which contact major cities and towns.

There are private bus operators who run regular schedule of buses for connection between major cities and towns. Most long distance buses are scheduled during the night. Long distance travel in buses is quite common for distance up to 500 km. In some cases

there are connections for distance like 1000km with a travel of 24hrs. With an advent of better buses (e.g., Volvos) and better highways, road transport has become a fast and comfortable option for travelers.

1.3: PROSPECTS OF TRANSPORT INDUSTRY

Most transport media in use today are generally fossil fuel powered. The reason for this is the ease of use and he existence of mature technologies harnessing this fuel source. Fossil fuels represent a concentrated, relatively compact source of energy. The drawback of such transportation media are that they are heavily polluting, and rely on limited energy source. Many ideas exist which try either harness Renewable forms of energy, more efficiently use fossil fuel, or use human power, or some hybrid of these, to move people and things.

The list given contains some forms of transport not in general not in general use, but considered as possibilities in the future: Air propelled train (proposed by Ray Bradbury in 1953). Bounce tube pneumatic travel (proposed by Robert A. Heinlein in 1956). Copter harness (proposed by Robert A. Heinlein in 1954). Flying car. Gravity repulsion elevator (proposed by Isaac Asimov in 1951). Light sail (proposed by jack Vance in 1962). Magnetic levitation train (maglev). Rolling road (proposed by Robert A. Heinlein in 1940). Personal rapid transit. Projectile vehicle (proposed by Jules Verne in 1867). Side walk (proposed by Robert A. Heinlein in 1948). Space craft propulsion or space transport. Tact or beam (proposed by E.E Doc Smith in 1942). Wormhole.

 Teleportation, such as the transporter from star trek. The motorized bicycle.

1.4: INTRODUCTION TO COSTING

Cost accounting is the classifying recording and appropriate allocation of expenditure for the determination of cost of products or services and for the presentation of suitably arranged dates of control and gaudiness of management.

It includes the ascertainment of the cost of every order, job contract process, service or units as may be distribution. It is that provision of such analysis and classification of expenditure as well enable. The total cost of any particular unit of production or service to be ascertained with reasonable degree of accuracy and at the same time to disclose exactly how such total cost is continued, (i.e., the value of materials used, the amount of labor and other expenses incurred) so as to control and reduce its cost.

1.5: MEANING OF TRANSPORT COSTING

Transport or service costing is that form of transport or operating costing which applies where standardized services or provided either by an undertaking or by a service cost center with in an undertaking.

This method may be used here service is not completely standardized but where it is convenient to regard it has such, and to calculate the average cost per period in relation to the standardized unit of measurement. Thus it is the cost of producing and maintaining a service. It is a method of costing applied to undertaking which provide service rather than production of commodities.

The transport or operating cost is generally period cost. The expenses are accumulated for a period and they are related to the quantum of service rendered during the period.

Transport industry includes air, water, road and railways: motor transport includes private cars, carries for owners, buses, taxi, Lorries, etc.

1.6: FEATURES:
In transport costing the cost per units of service rendered by a vehicle is determined. The total units of service of passengers vehicle is ascertained by multiplying the number of passenger carried by the distance covered.

1.7: OBJECTIVES OF TRANSPORT COSTING:

To provide information where by the productivity with which the vehicles are rented may be judge. To provide an accurate basis for quotation and fixing of rates. To ensure that all journeys have been carried out in proper time, fuel consumed is not excessive and those types are properly maintained. To compare the cost of maintaining of one group of vehicles with another group. To determine what should be charged against department using the service. To decide at what price the use of vehicle can be charged. To ensure that cost of maintenance and repairs is not excessive.

1.8: CLASSIFICATION OF COST

Cost can be classified into the following 3 heads:

1. STANDING OR FIXED COST. 2. MAINTENANCE CHARGES. 3. OPERATING AND RUNNING CHARGES.

1. STANDING OR FIXED COST:

These charges are incurred in spite of the kilometers run e.g., insurance, motor vehicle tax, license fee garage rent supervision and interest on capital.

2. MAINTENANCE CHARGES:
Semi variable expenses are included in this group e.g. Tyres and tubes repairs and painting, overhauls etc

3. OPERATING AND RUNNING CHARGES:

These charges vary more or less in direct proportion to kilometers and including petrol, oil and grease etc if payment is related to time or distance of trips, commission of taking if any and depreciation. Normally the life of a vehicle is given in terms of mileage to be run.

METHODS OF COSTING:
The methods to be used for the ascertainment of cost of production differ from industry to industry. It primarily depends on the manufacturing process and also on the methods of measuring the department and finished products. Basically there are two methods they are:1. SPECIFIC ORDER COSTING 2. OPERATION COSTING

1) SPECIFIC ORDER COSTNG:

It is the category of basic costing methods applicable where the work consists of separate jobs, batches or contract each of which is authorized by a specific order or contract, job costing batch costing and contract costing are included in this category.

2) OPERATION COSTING:
It is the category of basic costing methods applicable where standardized goods or services result from a sequence of repetitive and more or less continuous operation or process to which cost are charged before being averaged over units produced during the period.

JOB COSTING:
Costs are collected and accumulated for each jobs, work order or project separately. Each job can be separately identified, so it becomes essential to analyze the cost according to each job. A job card is prepared for each job for cost accumulation. This method is applicable to printers, machine tool manufacturing, foundries and general engineering work shop.

CONTRACT COSTING:
When the job is big and spread over long periods of time, the method of contract costing is used. A separate account is kept for each individual contract. This method is used by builders, civil engineering contractors, constructional and mechanical engineering firms etc

BATCH COSTING:

This is an extension of job costing. A batch may represent a number of small orders passed through the factory batch. Each batch is treated as a unit of cost a separately costed. The cost per unit is determined by dividing the cost of the batch by the number of units produced in a batch. This method is mainly applied in biscuits manufacturing, garments and spare parts.

PROCESS COSTING:
It is suitable for industries where production is continues, manufacturing is carried on by distinct and well defined processes, finished product of one process becomes the raw material of the subsequent process, different products with or without by products are produced simultaneously at the same process and products produced during a particular process are exactly identical.

MULTIPLY COSTING:
It represents the application of more than one method of costing in respect of the same product. This is suitable for industries where a number of components parts are produced separately produced and subsequently assembled into a final product.

SELECTION OF UNITS:
In transport costing a composite unit such as passenger mile or passenger kilometers or Tone kilometer is often selected. Such units take into account both the number of passengers or weight of goods carried and distance run.

Total passenger kilometer is calculated has follows: No of buses * No of days * No of trips * Distance per trip * Capacity * Normal passenger traveling.

ASCERTAINMENT OF COST:
Total fixed, maintenance and running costs are collected and allocated under respective heads and these are than divided by total units e.g., tones kilometer or miles or passenger kilometer carried, to arrive at average unit cost.

LOG BOOK:
Log book is a very important record maintained for each vehicle. Log book gives information about the history of the vehicles. Capital cost, capacity, maintenance and running details etc may be given; the information in the log book is divided into Three parts: A) 1. Name of the vehicle 2. Date of purchase 3. Purchase price 4. Taxes paid 5. Registration number 6. Insurance policy number, insure name etc

B) 1. Vehicles staff: divers, cleaners, mechanics, their address and grades. 2. Garage, rent, repairs and garage staff expenses. 3. Repairs and maintenance cost: servicing and cleaning, Repairs and cost of maintaining the vehicle.

C) Information about the running charges of the vehicle can be found in this part. 1. Petrol expenses 2. Oil and grease 3. Depreciation on tires, batteries etc 4. Insurance on the goods carried 5. Salary of drivers, cleaners, mechanics etc

DAILY LOG SHEET:

This sheet is given to each driver for each trip. The driver concerned will fill this sheet and hands over to the manger. Log sheet contains information about: 1. Trips made during the day. 2. kilometers run 3. Load or passenger carried 4. Petrol and oil 5. Idle hours and the cause for the idle hours.

BUID UP OF COST:
This cost of operation is enumerated for a period; say monthly or quarterly, etc they are related to the service rendered during that period. The build up cost upon whether only the service is rendered or whet\her the service is first produced and then rendered. The cost is build up of: 1. Fixed cost or standing charges. 2. Semi fixed or repair maintenance. 3. Variable or running charges.

CHAPTER . 2

RESEARCH DESIGN

2. DESIGN OF THE STUDY

2.1: INTRODUCTION
The transport or operating cost is generally period cost. The expenses are accumulated for a period and they are related to the quantum of service rendered during the period. Thus it is the cost of producing and maintaining a service.

2.2: STATEMENT OF THE PROBLEM:

One of the important objectives of any business organizations is to make profit. This profit can be achieved through selling goods or rendering services. The profit of any organization depends on the cost of factors of production and the prevailing competition. The difference between the selling price and cost incurred provides the margin that is profit. The base for fixing the selling price is the cost of manufacturing the profit percentage varies depending on the cost of manufacturing the Manufacturing Company ascertains the cost on the unit manufactured. But the main problem faced by the service industry is, the cost depends on the skill of an individual or concerned type of service (like hotel, hospital, transport etc..,). Thus it is necessary to understand as to how these service industries are charging for their services and how the cost of servicing is accumulated. Whether they are able to earn profit, how cost control is exercised. This is conducted to analyze the costing method adopted in a transport industry with respect to Karnataka State Road Transport Corporation (K.S.R.T.C), fully owned by State Government of Karnataka.

2.3: OBJECTIVES OF THE STUDY: To study the method of determining cost by K.S.R.T.C. To study the cost of maintaining the different group of vehicles. To ascertain the productivity of each vehicle of K.S.R.T.C. To ensure that cost of maintenance and repairs is not excessive. To compare the past data with present to know the fluctuations arrived.

2.4: SCOPE OF THE STUDY:The study helps in analyzing the transport costing for a period of five years. Transport costing clearly explains cost of the transportation. The study helps us in analyzing the management of cost by the organization. Thus transport costing helps the institution to analyze the performance and to make further projection, for smooth functioning of the business. By comparing the past data with the present we will be able to arrive at the fluctuation and enable us to make a need analysis for future course of action. The study of transport costing helps to assess the overall operational efficiency of the institution.

2.5: RESEARCH METHODOLOGY:SOURCES OF DATA:-

Primary data: - The required primary data has been collected from the financial executives through direct interview. Secondary data: - The required secondary data has been collected from the annual reports published by K.S.R.T.C, periodicals, journals, reference material and company website.

2.6: RESARCH INSTRUMENTS

The research instruments include the following:1. Annual Reports of K.S.R.T.C 2. Balance sheet of the organization 3. Company profile 4. Cost sheet analysis.

2.7: LIMITATIONS OF THE STUDY: This study is limited to the information provided by Karnataka state road Transport Corporation. Time constraints are limited for wide coverage of study. The study is concentrated only on the one financial aspects Transport costing. The accuracy of information depends on the degree of correctness accounts of the company.

2.8:- CHAPTER SCHEME:-

1. First chapter covers Introduction, Brief history of transport industry, Growth of transport industry, Prospects of transport industry. Introduction to costing, Meaning of costing, Features of transport industry, Objectives of transport industry, Classification of cost, Methods of cost, Ascertainment of cost, log book.

2. Second chapter covers Title of the study, Statement of the problem, Objectives of the study, Scope of the study, Methodology of the study, Research instruments, Limitations of the study.

3. Third chapter covers Company profile, History of KSRTC, Performance during the year, Infrastructure Of KSRTC, Financial Structure of organization, Forms of accounts, Capital of the corporation, Types of services, Range of services, Financial result, recruitments, Composition of board of directors, Staff position, Accident relief fund, Milestones, The future, Environmental initiatives by KSRTC, Future activities, Rules and regulation of KSRTC, Company at glance.

4. Fourth chapter covers Analysis of data and Inference.

5. Fifth chapter covers Summary of Findings, Conclusion and Recommendations.

CHAPTER. 3

COMPANY PROFILE

3. COMPANY PROFILE 3.1: HISTORY OF K.S.R.T.C:

The Karnataka State Road Transport Corporation was established in august, 1961 under the provision of the road transport corporation act 1950 with an objective of providing adequate efficient, Economic and properly coordinated road transport services. Three corporation viz., B.M.T.C, Bangalore from 15th august 1997, N.W.K.R.T.C, Hubli from 01 November 1997 and N.E.K.R.T.C.

Gulbarga from 01 October 2000 was formed out, on a regional basis, with K.S.R.T.C doing operations covering southern Karnataka and interstate areas.

K.S.R.T.C operates its services to all villages in the state, which have motor able roads. 92% of the villages in monopoly areas (6743 out of 7298) and 44% in non monopoly areas (5158 out of 11789) have been provided with transport facility by K.S.R.T.C.

K.S.R.T.C has reached yet another milestone in its IT field by introduction a new system named has AWATAR (Any where any time advance reservation) by which any passenger can reserve ticket well in advance online from any part of the world through internet, to travel from any place to any place on the routes on which the corporations operates its services. K.S.R.T.C is a first transport corporation in India to implement the software of this kind.

On this occasion K.S.R.T.C assures its commuters that some more projects of this kind will be taken up in the future with a view to several them to best of its ability and strive hard to reach every village in the state not only through road but also over net.

3.2: PERFORMANCE DURING THE YEAR:

Karnataka State Road Transport Corporation was the only state transport undertaking till 1996-97 the state government divided KSRTC and has carved out into two new corporations. Bangalore Metropolitan Corporation, Bangalore and North West Karnataka Road Transport Corporation, Hubli. The Bangalore metropolitan transport corporation, which came into being on 15th august 1997, caters exclusively to the city of Bangalore and the NWKRTC came into being effect from 1st November 1997.

As announced by her Excellency governor during her address to the joint session 1999, the state government has further bifurcated KSRTC and formed northeast Karnataka Road Transport Corporation consists of Gulbarga, Bidar, Yadgir, Raichur, Bellary and Kopal division on 15-6-2000. This new corporation financially became independent with effect from 1-10-2000 and now is operating 1629 schedules with 1854 vehicles thus providing transport service to 8.59 lakh passengers daily.

As on date K.S.R.T.C is operating 5800 schedules with 6800 vehicles by carrying 25 lakh passengers daily. Out of these 6800 vehicles, 438 hi-tech and 250 luxury vehicle having air and wheeler suspension for providing more comfort to the traveling public.

For K.S.R.T.C is presently operating 417 vehicles in its 5 neighboring states. During the year 2000-2001 K.S.R.T.C has planned to induct 650 vehicles out of which 500 for replacement of old vehicles and 150 for augmentation of new schedules. To provide

better comfort to the passengers, K.S.R.T.C is operating present 5000 series and airconditions buses. K.S.R.T.C is constructing and operating aerodynamic vehicles in order to improve is fuel efficiency. In order to reduce the staff cost of the corporation has recruited driver-cumConductor and taking steps to operate conductor-less services. In order to improve the driver skills, drivers are being trained with the help of simulators.

K.S.R.T.C has its official website (www.Ksrtc.org) were in details of arrival or departure of buses, bus station, fares for different class of services or destination and facility for journey reservation information will be hosted.

3.3: INFRASTRUCTURE OF K.S.R.T.C

One corporate office, 10 divisional offices, 50 depots, 2 bus body building workshop, 1 printing press, 103 bus stands and 4706 buses. K.S.R.T.C has its operating units called Depots, which normally operates about 75 schedules. Those depots are situated generally in taluk head quarters.

At the district level K.S.R.T.C has divisional offices normally each division supervises 45 depots. A senior officer called divisional controller heads these division. At present K.S.R.T.C have divisional offices at Davanagere, Hassan, Mangalore, Mysore, Tumkur, Kolar and Bangalore. At Bangalore there are 2 divisional offices, one for the rural area and other to operate long distance routes.

3.4: FINANCIAL ORGANIZATION STRUCTURE:

The management of the affairs and business of the corporation is vested with the board of directors consisting of not less than 5 and not more than 17 directors. In conducting the day-to-day business, the board is assisted by the managing directors appointed by the state government, who is the chief Executive of the corporation.

3.5: FORM OF ACCOUNTS

As required under section 33 (1) o0f the RTC Act 1950, the corporation is maintaining annual statement of accounts including the profits and loss accounts and balance sheet in the form of prescribed by the state government in consultation with the comptroller and auditor general of India.

3.6: CAPITAL OF THE CORPORATION:

According to section 23 (1) of RTC Act 1950 the central government and the state government have to provide capital in such proportion as may be agreed to by both the government, which is required for the purpose of carrying on the undertaking or for the purposes connected there with, on such terms and condition not inconsistent with in the provision of this act as the state government may with the previous approvals of the central government determine.

However, the central government has stopped their capital contribution from 1987-1988. Although the state government was giving sufficient capital contribution up to 1994-95 this was reduced substantially afterwards and only nominally amount of Rs.15.00 lakh to Rs 20.00 lakh were provided up to 1998-99 and state government stopped giving capital contribution completely To K.S.R.T.C from 1999-2000 onwards. Hence the corporation is depending solely on external borrowings for its capital expenditure programmes.

3.7: TYPES OF SERVICES:

As against the normal express buses, today we find a large number of hi-tech buses in the list of services offered by K.S.R.T.C.

1. Volvo air-conditioned: ultra deluxe, deluxe & semi- deluxe services. 2. Express services. 3. Moffusil or ordinary. 4. City & sub-urban services. 5. Deployment of mini buses. 6. Non-stop services.

3.8: RANGE OF SERVICES:

AIRAVAT MAYURA RAJAHAMSA MINI BUSES KARNATAKA SARIGE MOFUSSIL

SERVICES TO COMMUTERS:

During the year 2007-08 the corporation inducted 1263 new vehicles of various types which are highest in the history of the corporation for the current year 2007-08 corporations has planned to induct about 1550 new with investment of Rs. 215 crores. The corporation for the year 2006-07 operated 69 crores kms. During the year 2007-08 it has planned to operate 82 crores kms.

3.9: FINANCIAL RESULTS:

For the year 2007-08 revenue reached all time high of Rs. 1448 crores, a growth of 13.86% as against Rs. 1272 crores during the year 2006-07. This is result of better transport facilities and services provided by the corporation to the general public by adding premium services like Volvo, sleeper and air-condition semi-sleepers besides replacing old buses in the rural sector by Karnataka sarige and introduction of double door Grameena sarige buses. With the concerted efforts, the corporation is continuously making profits. During the year 2007-08, The Corporation achieved the highest profits of Rs.40.54 Crores.

3.10: RECRUITMENTS:K.S.R.T.C has adopted transparent policy of recruitment by adopting automated driving test sensor system with out any human interference. K.S.R.T.C is the first STU to adopt such system in the country. During the year 2007-08, 6223 personnel were recruited through the above system. The recruitment plan of recruiting further 4000 drivers and driver cum conductor is on the anvil. All the vacancies have been filled through the transparent recruitment process. The K.S.R.T.C is among the few public sectors undertaking in the state which cleared all the backlog vacancies as per the government guidelines. The recruitment of 79 officers and 328 supervisory staff is under progress.

3.11: COMPOSITION OF THE DIRECTORS ON THE BOARD OF K.S.R.T.C:

The Board of Karnataka state road transport corporation consisted of 10 Directors and one invitee as on 31st March 2008. All the directors are appointed by the state government. The commissioner, BMRDA, Government of Karnataka has attended the Board meetings as an invitee in terms of section 19(a) of the BMRDA Act 1985. THE FOLLOWING IS THE COMPOSITION OF BOARD OF DIRECTORS:

SL.NO

NAME & ADRESS

OFFICIAL / NONOFFICIAL
VICE CHAIRMAN Official

SRI. A.P.JOSHI, IAS.

SRI.S.K.DASHI, IAS.

DIRECTOR Official

SRI. M.R.SREENIVASAMURTHY, IAS.

DIRECTOR Official

SRI.D.VENKETESHWARA RAO, IAS.

DIRECTOR Official

SRI. SUBIR HARI SINGH, IAS.

INVITEE Official

SRI. UPENDRA TRIPATHY, IAS.

DIRECTOR Official

SRI. MOHAMMED WAZIR AHMED, IPS.

DIRECTOR official

SRI. M. ABDUL SALEEM, IPS.

DIRECTOR Official

SRI. SHANKAR PATIL, KAS.

DIRECTOR Official

10

SRI. S.K. PARAMESH

DIRECTOR Official

11

SRI. K. A. RAJKUMAR

DIRECTOR Official

3.12: STAFF POSITION:

The corporation employed 27505 permanent employees as on 31-03-2008 as against 27255 employees as on 31-03-2007. The category-wise break-up of the total staff is given in table.

Sl.no

CATEGORY

NO OF EMPLOYEES AS ON 31.03.2008

NO OF EMPLOYEES AS ON 31.03.2007

REGULAR EMPLOYEES

338

297

A)

Class-I and II officers

B)

Class-III and IV officials Drivers Conductors Drivers cum- conductor Traffic supervisors Mechanical Administration Civil engineering 8366 6687 4280 1067 4161 2535 16 8783 7325 3436 938 3938 2431 40

Printing press

55

67

Total Class-III & IV

27167

26958

Total Regular Employees (a + b)

27505

27255

The Strength of Class-I & II officers was 338 and accounted for 1.23% of the total permanent corporation. The ratio of officers to staff was 1:80 as on the last day of the year i.e. 31-3-2008.

3.13: ACCIDENTS RELIEF FUND:

1. Accidents cover of Rs 200000 to the dependents in case of death of a passenger in accidents while traveling in a KSRTC bus. 2. Rs.1 is collected extra on ticket of Rs. 100 and more towards this. 3. Efforts made to settle the claims within 10 days. 4. All that the dependents want to do is to fill the simple form available at KSRTC offices and submit it along with the post mortem report FIR report and Affidavit signed it along by a notary starting the relationship with the deceased to the nearest divisional office.

3.14: MILESTONES:
Till august 1997, KSRTC had a fleet of 10400 buses, operating about 9500 schedules. August 1997, KSRTC was divided into KSRTC and BMTC. November 1997, NORTH WESTERN KARNATAKA ROAD TRNAPORT CORPORATIONM (NWKRTC) was formed with its corporate office at Hubli. August 2000, NORTH WESTERN KARNATAKA ROAD TRNAPORT

CORPORATIONM (NWKRTC) was formed with its corporate office at Gulbarga.

3.15: THE FUTURE:

The KSRTC hold the strong belief that accomplishments are a thing of the past and the corporation has set its eyes on several more innovations and up-gradations of exciting programmes in the future. The commuters can look forward to new and creative ways from KSRTC to serve them with more comfort and convince. The outlook for 2007-08 is:

1. Augmentation of 500 schedules. 2. Commissioning of 7 more new depots and 7 new bus stations. 3. Proposed to add 900 new vehicles to the existing fleet by replacing 725 old fleet which are not fit for operation. 4. Expected to earn gross revenue of Rs 155818.53 lakh. 5. Proposed to make a profit of Rs.2618.29 lakh on gross revenue.

6. Planned to construct 3 divisional workshops & 3 divisional offices at Tumkur, Mandy, Chikkaballapura and Chikkamangalore.

3.16: ENVIRONMENTAL INITIATIVES BY KSRTC:

The environmental cell was created in the year 1996 with the directors (P&E) as exofficio head of environmental cell at corporate level. The progress of the Environment cell in areas of afforestation, smoke level checks, water & energy audits have been phenomenal in terms of conservation of energy balance for emission. Some of the programmes undertaken are as follows:

1. AFFORESTATION:

A massive Afforestation programme was implemented in the year 1997-98 for all the three corporations. Out of this 20500 saplings were planted in bus stands. It is also taken up major afforestation activities by providing targets every year to its entire operating unit. As on date there are 2.78 lakh sapling planted in the areas belonging to KSRTC & its sister corporation.

2. SMOKE EMISSION CHECKS:

The corporation has launched programmes of routine smoke emission checks covering the entire fleet at regular intervals. All the depots have been equipped with smoke meters. The limit of smoke levels for heavy duty diesel vehicles being 65 hard ridge units. No vehicles above the norm are allowed operating. All the vehicles tested for emission levels and a sticker for the emission under control is displayed on the all the vehicles.

3. DERATION:

All the vehicles are derated for optimum fuel efficiency, which also has helped in reduction of emission levels.

4. PAINTING BOOTH:

Painting booths have provided to all the three regional workshops to reduce the exposure to fumes during paintings of buses.

5. TESTING OF HSD:

KSRTC has set up a laboratory at Bangalore and Hubli to check the quality of fuel supplied. As many as 150 to 160 samples of all the division is rested every month.

6. RAIN WATER HARVESTING:

Rain water harvesting has been implemented at Kempegowda Bus Station, Mysore urban division, Davanagere, Hassan, Bangalore central and rural division.

7. DIESEL PARTICULAR FILTERS:

KSRTC jointly with Bharat Heavy Electrical Limited, Bangalore has completed trails of diesel particular filter and commercial application of indigenous diesel particulate trap for heavy vehicles which is first of its kind in India is under progress.

8. ENERGY AUDIT:

Energy audits have been carried out and energy norms have been fixed.

9. BIO-FUEL:

Alternative fuel trails with diesels + honge in the ratio (90:10), bio-fuel has been completed. The results are excellent. Doddaballapur depot of Bangalore rural division, KSRTC, has been converted as bio-fuel depot.

10. HAZARDOUS WASTE MANAGEMENT:

Hazardous waste management and handling rules as required by polluting control board for disposal of batteries and lubricants is followed scrupulously.

11. SEMINARS AND CONFERENCE:

Seminars and conference are organized every year for the world environment day. An international seminar titled Seminar on Transport & Environment Friendly Technologies (STEFT) was organized on 6th June 2005 at Taj west end, Bangalore.

12. AWARENESS PROGRAMME:

KSRTC is sponsoring various environment awareness programmes on air pollution & road safety etc

13. TRAINING:

Training is imparted to the employees and officers on environment awareness and its impact in the regional training institute.

14. ISO CERTIFICATE:

The corporation is in the process of ISO 14000:9001 certificate for the bus station, depot & workshop along with OHSAS 18001.

15. AWARDS:

In lieu of the above environmental initiatives KSRTC has bagged the following prestigious awards. The parisara award 2001-02 KSRTC by government of Karnataka for its environment initiates and excellence. Golden peacock environment management awards for large services industrytransport sector for 2003.

3.17: FUTURE ACTIVITIES:

WATER RECYCLING PLANT: A pilot plant is commissioned at depot-II, Bangalore central division. All the depots will be equipped with water recycling plant. It is also proposed to commissions de centralize plant for central offices to save consumption of fresh water.

SOLAR HYBRID SYSTEM: Solar hybrid systems have been installed on trails basis at Kempegowda bus station and regional workshop Bangalore. It is proposed to install solar generators at the corporate offices and solar pumps to remote depots situated at taluk level.

3.18: RULES & REGULATIONS OF KSRTC:

The following Rules/Regulations are in force in KSRTC.

1. KSRTC Gratuity Regulations (01-04-1957). 2. KSRTC Rules 1961. 3. KSRTC Employees Leave Rules 1964. 4. KSRTC Employee Contributory Provident Fund Regulations 1968. 5. KSRTC Employees (Medical Attendance) Regulations 1970. 6. KSRTC Servants (Conduct & Discipline) Regulations 1971. 7. KSRTC Servants (Payment of Advance for Purchase of Motor Car/ Cycle/ Scooter & Bicycles) Regulations 1976.

8. KSRTC Employees (Promotion and Pay) Regulations 1980. 9. KSRTC (Cadre & Recruitment) Regulations 1982. 10. KSRTC Employees (Premature Retirement) Regulations 1983. 11. KSRTC Employees Compulsory/ Voluntary Retirement Regulations 1984. 12. KSRTC Employees (Performance Appraisal Report) Regulations 1985. 13. KSRTC Recruitment (In-service Recruitment) Scheme 1997. 14. Grant of Extra-ordinary Leave without wages to the Employees of the Corporation Scheme.

3.19: INFRASTRUCTURE DEVELOPMENT PROGRAMME:

The corporation has taken up large number of infrastructure development projects or works. They are in the various stages of progress. 1. Up-gradation of 30 bus station at the cost of Rs.25 crores. 2. Construction of 8 new bus depots at the cost of Rs.9 crores. 3. Construction of 19 new bus stations at the cost of Rs 29 crores. 4. Up-gradation of 11 bus stand toilets at the cost of Rs 2 crores.

3.20: SOCIAL OBLIGATION:

1. Student concession passes. 2. Free passes for the blind. 3. Free passes to physically handicapped students. 4. Free passes to Freedom Fighter. 5. Free bus passes to ARJUN awards.

3.21: COMPANY AT A GLANCE

NAME OF THE ORGANIZATION

KARNATAKA STATE ROAD TRANSPORT CORPORATION

ADDRESS

KSRTC central office: Transport House, K.H. Road Shantinagar, Bangalore - 560027

YEAR OF ESTABLISHMENT

1961

SLOGAN OF KSRTC

Connecting Karnataka with Care.

NATURE OF ACTIVITIES

Transportation

CONSTITUTION

Wholly

owned

by

Government

of

Karnataka.

MANAGEMENT CONTROL

M.D

WEBSITE

www.ksrtc.org

CHAPTER .4

ANALYSIS OF DATA

4. ANALYSIS OF DATA
1. FLEET HELD: Fleet held refers to the total numbers of buses of different ranges maintained by KSRTC. Each years fleet held is been calculated by using registered passenger buses as given below for the year 2007-08:-

Sl.No.

Particulars

Vehicles held as on 31-03-2008

1.

Registered passenger buses. a. Leyland b. Tata c. Swaraj Mazda (mini) d. Volvo Total (a to d)

3696+95 pvt 2619 143 206 6664+95 Pvt.

TABLE - 4.1 Table Showing the Fleet Held by KSRTC.

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

FLEET

4410 100

4944 112.10

5384 122.08

5950 134.92

6759 153.26

PERCENTAGE

GRAPH 4.1

Graph Showing the Fleet Held by KSRTC.

8000 7000 6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 4410
(100%)

6759 4944
(112.10%)

5384
(122.08%)

5950
(134.92%)

(153.26%)

FLEET HELD

INFERENCE:-

From the above graph it is very clear that the fleet of KSRTC has been increased over the years, that is from 2003-04 it was 4410 (100%) thereafter in 2007-08 it has been increased to 6759 (153.26%). And it also indirectly shows that the number of passengers who travel in bus has been increased, so the department has increased the number of fleet operated in the State. This is because of the requirements of the more number of vehicles to run the schedules given by the traffic rule.

2. SCHEDULES OPERATED: -

Schedules operated, refers to the Routes covered by KSRTC according to the divisions made in the state. TABLE 4.2

Table showing the schedules operated by KSRTC.

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

SCHEDULES

4094

4615

4984

5478

5737

PERCENTAGE

100

112.72

121.73

133.08

140.13

GRAPH 4.2 Graph Showing the Schedules Operated by KSRTC.

7000 6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 4984 4094
(100%)

5478
(133.08%)

5737
(140.13%)

4615
(112.72%)

(121.73%)

SHEDULES

INFERENCE:

From the above graph it is very clear that the schedules operated have been increased from past 5yrs that is from 2003-04 it was 4094 (100%) thereafter in 2007-08 it has been increased to 5737 (140.13%). It also indicates the different routes covered by KSRTC buses have been increased. This is because of the increase in the schedules routes to be operated was more which was stated by the traffic rule.

3. EFFECTIVE KILOMETERS:-

Effective kilometers refer to the kilometers run by all types of vehicles, each year effectively. It is calculated by the total kilometers run by the corporation and the pvt vehicles owned it is shown below for the year 2007-08:-

EKMS of corporation vehicles EKMS of Pvt vehicles

7539.28 58.79

TOTAL

7598.07

EKMS shown in percentage = 7598.07/100 = 75.98

TABLE 4.3 Table Showing the Effective Kilometers (In Crores).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

KMS

56.22

58.10

63.92

69.04

75.98

PERCENTAGE

100

103.34

113.69

122.80

135.14

GRAPH 4.3 Graph Showing the Effective Kilometers.

80 70 60 50 40 30 20 10 0 2003-04 2004-05 2005-06 2006-07 56.22

(100%)

75.98 69.04 58.1

(103.34%) (135.14%)

63.92
(113.69%)

(122.80%)

EKMS

2007-08

INFERENCE: From the above graph it is very clear that the effective kilometers run by the vehicles of KSRTC has been increased over the years, that is from 2003-04 it was 56.22 (100%) thereafter in 2007-08 it has been increased to 75.98 (135.14%). As there is an increase in the schedule routes, the effective kilometers run by the vehicle has also been increased.

4. AVERAGE VEHICLES UTILIZED: Average vehicle utilized refers to the usage of vehicle to run the schedules given by the traffic rule. It is use of vehicles per day and kilometers per vehicles.

TABLE 4.4

Table showing the Average Vehicles Utilized. (Kms vehicle per day).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

VEHICLES UTILIZED

367

367

362

362

365

PERCENTAGE

100

100

98.63

98.63

99.45

GRAPH 4.4

Graph Showing the Average Vehicles Utilization.

368 367 366 365 364 363 362 361 360 359

367
(100%)

367
(100%)

365
(99.45%)

AVERAGE VEHICLES UTILIZATION 362 362

(98.63%) (98.63%)

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that average vehicles utilized is constant, that is in 2003-04 and 2004-05 it was 367 (100%), but it has decreased from 2005-06 to 2006-07 by 362 (98.63%) and in 2007-08 by 365 (99.45%). The schedule kilometers has been varied due to the rules provided by traffic.

5. KMPL:KMPL means kilometer per liter. It refers to the kilometer run by the vehicle per liter.

TABLE 4.5

Table showing the KMPL: Fuel Efficiency of KSRTC. (Kms per liter)

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

KMPL

5.25

5.28

5.13

5.07

5.02

PERCENTAGE

100

100.57

97.71

96.57

95.61

GRAPH 4.5

Graph showing KMPL.

5.3 5.25 5.2 5.15 5.1 5.05 5 4.95 4.9 4.85 2003-04 5.25
(100%)

5.28
(100.57%)

5.13
(97.71%)

5.07
(96.57%)

5.02 (95.61%)

KMPL

2004-05

2005-06

2006-07

2007-08

INFERENCE:From the above graph it is very clear that the KMPL of KSRTC has been increased in 2003-04 and 2004-05 by 5.25 (100%) to 5.28 (100.57%), but later on it has been gradually decreased from 2005-06 to 2007-08 by 5.13 (97.71%), 5.07 (96.57%) and 5.02(95.61%). This is because of the new technologies used in the buses like air condition etc, and also new buses introduced which is of heavy body, and buses like Volvo etc., which needs more fuel to run.

6. RATE OF BREAKDOWNS:Break down refers to the repair or failure of the vehicles to perform the best. Lower the Breakdown rate higher will be the efficiency.

TABLE 4.6 Table Showing the Rate of Break Downs. (Rate per 10000 kms)

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

BREAKDOWNS

0.05

0.05

0.06

0.08

0.09

PERCENTAGE

100

100

120

160

180

GRAPH 4.6

Graph Showing the Breakdown Rate.

0.1 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0

0.09 0.08
(160%) (180%)

0.06 0.05
(100%)

0.05
(100%)

(120%)

BREAKDOWN RATE

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that the break down rate of KSRTC has been constant in 2003-04 and 2004-05 by 0.5 (100%), again there is a gradual increase from 2005-06 to 2007-08 by 0.06 (120%), 0.08 (160%) and 0.09 (180%). This fluctuation is due to the shortage of knowledgeable mechanical staff to make the vehicles more efficiency.

7. RATE OF ACCIDENTS:-

Rate of accidents refers to the accidents occurred in that particular year.

TABLE 4.7

Table Showing the Rate of Accidents. (Rate per 100000 kms)

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

ACCIDENT RATE

0.16

0.17

0.18

0.16

0.18

PERCENTAGE

100

106.25

112.5

100

112.5

GRAPH 4.7

Graph Showing the Rate of Accidents.

0.185 0.18 0.175 0.17 0.165 0.16 0.155 0.15 2003-04 2004-05 2005-06 2006-07 2007-08 0.16
(100%)

0.18
(112.5%)

0.18
(112.5%)

0.17
(106.25%) RATE OF ACCIDENTS

0.16
(100%)

INFERENCE:-

From the above graph it is very clear that the rate of accidents per lakh kms has been increased from 2003-04 to 2005-06 by 0.16 (100%), 0.17 (106.25%) and 0.18 (112.5%). It has decreased in 2006-07 by 0.16 (100%) and again has increased in 2007-08 by 0.18 (112.5%), this is due to the increase in the rate of population and the number of vehicles on the road is high. The performance of the drivers is also low.

8. COMMERCIAL REVENUE: Commercial revenue is that revenue that comes from other than selling of tickets. The revenue may be in the form of hiring of buses from the KSRTC for special occasion like marriages etc

TABLE 4.8

Table Showing the Commercial Revenue (Rs in lakhs) of KSRTC.

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

COMMERCIAL REVENUE

1266.10

1221.22

1329.46

1495.73

1705.42

PERCENTAGE

100

96.45

105

118.13

134.69

GRAPH 4.8

Graph Showing Commercial Revenue.

1800 1600 1400 1200 1000 800 600 400 200 0 1266.1 1221.22
(100%) (105%)

1705.42 1495.73 1329.46 (118.13%)

(134.69%)

(96.45%) COMMERCIAL REVENUE

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that there the commercial revenue has decreased from 2003-04 to 2004-05 by 1266.10 (100%) to 1221.22 (96.45%) , and there by, it has been gradually increased from 2005-06 to 2007-08 by 1329.46 (105%) to 1705.42 (134.69%). The rate of Commercial revenue is increased from the year 2005-06 to 2007-08 due to the good service rendered by KSRTC.

9. FINANCIAL MARGIN:-

Financial margin refers to the financial position of the company. The rate of financial margin of KSRTC has been shown in the below table.

TABLE 4.9

Table Showing the Financial Margin (Rs in Crore) of KSRTC.

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

FINANCIAL MARGIN PERCENTAGE

25.87

26.63

26.78

33.90

40.54

100

102.93

103.51

131.03

156.70

GRAPH 4.9 Graph Showing Financial Margin of KSRTC.

45 40 35 30 25 20 15 10 5 0 25.87
(100%)

40.54
(156.70%)

33.9
(131.03%)

26.63
(102.93%)

26.78
(103.51%)

FINANCIAL MARGIN

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that the financial margin has increased over the years. There is a gradual increase in the margin from 2003-04 to 2007-08 by 25.87 (100%) to 40.54 (156.70%). The financial margin has increased due to the kilometer run by vehicles and the cost incurred for the vehicles run is high. Lower the cost, higher will be the profit margin.

10. EPKM and CPKM:EPKM refers to Earnings per kilometer, and CPKM refers to Cost per kilometer.

TABLE 4.10

Table showing the EPKM and CPKM (in paise).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

EPKM

1406.8

1541.3

1698.5

1842.0

1905.9

CPKM

1360.8

1495.5

1656.6

1792.9

1852.5

GRAPH 4.10

Graph Showing EPKM & CPKM. 2500 2000 1500 1000 500 0

EPKM CPKM

2003-04 EPKM 1406.8 CPKM 1360.8

2004-05 1541.3 1495.5

2005-06 1698.5 1656.6

2006-07 1842 1792.9

2007-08 1905.9 1852.5

INFERENCE:From the above graph it is very clear that the cost incurred and the earnings from the kilometer run can be analyzed (in paisa). The higher the cost, lower will be the earnings and vice-versa. In the year 2003-04

Earnings

1406.8 1360.8 46 paise per kms.

Cost incurred = Actual earnings = In the year 2004-05

Earnings

1541.3 1495.5 45.8 paisa per kms.

Cost incurred = Actual earnings In the year 2005-06 Earnings Cost incurred Actual earnings =

= = =

1698.5 1656.5 41.9 paisa per kms.

In the year 2006-07 Earnings Cost incurred = = 1842.0 1792.9

Actual earnings

49.1 paisa per kms

In the year 2007-08 Earnings Cost incurred = = 1905.9 1852.5

Actual earnings

53.4 paisa per kms

11. PUBLIC COMPLAINTS;Public complaint refers to the rate of complaints received from public for the in efficient service.

TABLE 4.11

Table Showing the Public Complaints (Per lakh passengers) to KSRTC.

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

PUBLIC COMPLAINTS PERCENTAGE

0.06

0.13

0.10

0.09

0.23

100

216.7

166.7

150

383.3

GRAPH 4.11 Graph Showing Public Complaints to KSRTC.

0.25 0.2 0.15 0.1 0.06 0.05 0

(100%)

0.23
(383.3%)

0.13
(216.7%)

0.1
(166.7%)

0.09
(150%)

PUBLIC COMPLAINTS

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that the public complaint against the quality of services provided by KSRTC has been fluctuated from year to year. In 2003-04 it was 0.06 (100%), in 2004-05 it has been increased by 0.13 (216.7%), again it has decreased by 0.10 (166.7%) and 0.09 (150%) in 2005-06 and 2006-07 i.e. by 166.7% and 150%, and has again increased by 0.23 (283.3%) in 2007-08. The variations has taken place in each year as the services provided to the public is not sufficient and is of low quality, but the organization has taken severe actions to overcome the bad quality of services provided and all complaints received from the public are carefully investigated and suitable action taken wherever warranted.

12. TOTAL REVENUE AND COST OF OPERATION:Total revenue refers to the total profit of the company, Cost of operation is those expenses incurred for the buses like diesel cost, tires tubes etc.

TABLE 4.12

Table Showing the Total Revenue and Cost of Operation (Rs in Crores)

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

REVENUE

790.57

895.46

1085.69

1271.80

1448.11

COST

764.96

866.83

1058.91

1237.90

1407.56

GRAPH 4.12

Graph Showing Revenue & Cost of Operation.

1600 1400 1200 1000 800 600 400 200 2003-04 2004-05 2005-06 2006-07 2007-08 895.46 1085.69 1271.8 1448.11 REVENUE 790.57 764.96 866.83 1058.91 1237.9 1407.56 COST 0 REVENUE COST

INFERENCE:-

From the above graph it is very clear that there is an increase in the revenue and cost in each year. In 2003-04 the revenue has increased from 790.57 to 1448.11 in 2007-08. The increase in the Revenue from each year is due to the increase in the number of routes and also because of the cost improvement in the service. If the cost is less revenue will be more.

13. TOTAL WORKING EXPENSES:-

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

Total working expenses refer to the day to day expenses. It also includes depreciation, interest and bonus.

TABLE 4.13

Table Showing the Total Working Expenses.

WORKING EXPENSES PERCENTAGE

76495.70

86882.85

105891.10

123790.14

140756.64

100

113.57

138.42

161.82

184

GRAPH 4.13 Graph Showing Working Expenses.

160000 140000 120000 100000 80000 60000 40000 20000 0 76495.7

(113.57%) (100%)

140756.64 123790.14 105891.1 86882.85

(138.42%) (161.82%) (184%)

WORKING EXPENSES.

2003-04 2004-05 2005-06 2006-07 2007-08

INFERENCE:From the above graph it is very clear that there is an increase in the working expenses from year to year, i.e., from 2003-04 to 2007-08 by 76495.70 (100%) to 140756.64 (184%). The reason for the increase in the Rate of working expenses is due to the increase in the cost of other expenses like Fuel, Lubricants, Auto spare, Workshops &

Maintenance, Tax, Depreciations of vehicles, Interest, Bonus etc.,

14. PASSENGERS CARRIED :Passenger carried refers to the number of passengers carried per day.

TABLE 4.14

Table Showing the Number of Passengers Carried Per Day (in lakh).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

PASSENGERS CARRIED PERCENTAGE

15.86

16.02

18.83

22.75

24.37

100

101

118.27

143.44

153.65

GRAPH 4.14

Graph Showing Passengers Carried Per Day.

30 25 20 15.86 15 10
(100%)

22.75 18.83 16.02

(101%) (118.27%)

24.37
(153.65%)

(143.44%)

PASSENGERS CARRIED

INFERENCE:From the above graph it is very clear that the number of passengers carried per day has been increased from the base year 2003-04 to 2007-08 by 15.86 (100%) to 24.37 (153.65%).The reason for the increase in the Rate of Passengers carried is due to the convenience in traveling in the buses, less cost of traveling and good services rendered by KSRTC. And another reason may also be due to the increase in the rates of petrol and maintenance of own vehicles, thus because of these reasons there was as increase in the Passengers carried per day from year to year.

15. TOTAL SCHEDULE KILOMETERS:-

Total schedule kilometer refers to the total routes covered by the buses.

TABLE 4.15

Table Showing the Total Schedule Kilometer (in lakh).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

SCHEDULE KMS

5495.53

5682.72

6218.28

6892.89

7632.05

PERCENTAGE

100

103.40 GRAPH 4.15

113.15

125.42

138.87

Graph Showing Total Schedule KMS.

9000 8000 7000 6000 5495.53 5682.72 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08
(100%) (103.40%)

7632.05 6892.89 6218.28

(113.15%) (125.42%) (138.87%)

SCHEDULE KMS

INFERENCE:From the above graph it is very clear that there is an increase of the total schedules kilometer from year to year, i.e. from 2003-04 to 2007-08 by 5495.53 (100%) to 7632.05 (138.87%) in 2007-08 respectively. The reason for the increase in the total schedule

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08

kilometers is due to the rule stated by the traffic to cover the various routes in the city and also outside the city. The higher the schedules routes the more will be the kilometers run.

16. FIXED COST:Fixed Cost refers to cost which remains fixed in total but compulsorily varies per kilometer.

FIXED COST

601.0

623.6

606.1

627.6

689.2

PERCENTAGE

100

103.76 TABLE 4.16

100.84

104.42

114.67

Table Showing the Fixed Cost per Kilometer (in paisa).

GRAPH 4.16 4.16: Graph Showing Fixed Cost per Km.

700 680 660 640 620 600 601

(100%)

689.2
(114.67%)

623.6
(103.76%)

627.6
(104.42%)

606.1
(100.84%)

FIXED COST

INFERENCE:From the above graph it is very clear that there is variation in the fixed cost from year to year. In 2003-04 it was 601.0 (100%), it has been increased to 623.6(103.76%) in 200405, again it has been decreased in 2005-06 by 606.1 (100.84%) and thereby has been increased from 2006-07 and 2007-08 by 627.6 (104.42%) to 689.2 (114.67%). The reason for the variation in the fixed cost is, the cost do not increase or decrease with the change in output put, cost per unit decreases when volume of product increases when volume of product increases and vice-versa.

17. VARIABLE COST:Variable cost refers to the compulsorily variation in total but normally remain fixed per unit.

TABLE 4.17

Table Showing the Variable Cost per Kilometer (in paisa).

YEARS

2003-04

2004-05

2005-06

2006-07

2007-08 1165.02

VARIABLE COST PERCENTAGE

739.4

854.7

1040.2

1162.9

100

115.59

140.68

157.27

157.56

GRAPH 4.16

Graph Showing Variable Cost Per Km.

1400 1200 1000 800 600 400 739.4

(100%)

1162.9 1040.2
(140.68%)

1165.02
(157.56%)

(157.27%)

854.7
(115.59%)

VARIABLE COST

INFERENCE:From the above graph it is very clear that there is gradual increase in the Variable cost year to year from 2003-04 to 2007-08 by 739.4 (100%) to 1165.02 (157.56%). The increase in the variable cost is due to variation in the direct proportion to the volume of output i.e., when volume of output increases, total variable cost also increases & viceversa.

CHAPTER . 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1:- SUMMARY OF FINDINGS. The fleet held by KSRTC has been increasing from year to year, that is from 2003-04 to 2007-08 by 4410 (100%) to 6759 (153.26%). The number of buses has increased the schedules operated from 2003-04 to 2007-08 by 4094 (100%) to 5737. The average vehicles utilization has been constant from 2003-04 to 2004-05 by 367(100%), it has decreased from the year 2005-06 to 2006-07 by 362 (98.63%) and

it has again increased in the year 2007-08 by 365(99.45%), its because the schedule kilometers has been Varied due to the rules provided by traffic. KMPL: Kilometer Per Liter has been increased from 2003-04 to 2004-05 by 5.25 (100%) to 5.28 (100.57%), but later on it has been gradually decreased from 2005-06 to 2007-08 by 5.13 (97.71%), 5.07 (96.57%) and 5.02 (95.61%), this is because of the introduction of new technologies used in the buses like air condition and introduction of heavy body buses like Volvo etc., Rate of break down has been constant in the year 2003-04 and 2004-05 by 0.5(100%), but again there is a gradual increase from 2005-06 to 2007-08 by 0.06(120%), 0.08 (160%) and 0.09 (180%) because of shortage of knowledgeable mechanical staff to make the vehicles more efficiency and perform best. The commercial revenue has been decreased from 2003-04 to 2004-05 by 1266.10 (100%) to 1221.22 (96.45%), and there by there is a gradual increase from 2005-06 to 2007-08 by 1329.46(105%) to 1705.42 (134.69%).

Financial Margin has also been increased from the year 2003-04 to 2007-08 by 25.87 (100%) to 40.54 (156.70%) respectively. The working expenses (including depreciation, interest & bonus) has been increased from 2003-04 to 2007-08 by 76495.70 (100%) to 140756.64(184%). The number of passengers carried per day (in lakh) has been increased from the year 2003-04 to 2007-08 by 15.86 (100%) to 24.37 (153.65%).

 The rate of accidents per lakh kms has been increased in the year 2003-04 to 2005-06 by 0.16 (100%) to 0.18 (112.5%) and decreased in the year 2006-07 by 0.16(100%) and again began to increase in 2007-08 0.18 (112.5%) by this is due to the increase in the rate of population and the number of vehicles on the road is high. The fixed cost in 2003-04 was 601.0 (100%), it has been increased to 623.6(103.76%) in 2004-05, again it has been decreased in 2005-06 by 606.1 (100.84%) and thereby has been increased from 2006-07 and 2007-08 by 627.6 (104.42%) to 689.2 (114.67%). The variable cost has gradually increased from year to year, 2003-04 to 2007-08 by 739.4 (100%) to 1165.02 (157.56%).

5.2 CONCLUSION:-

The study on Transport Costing helped me to know the cost involved in service maintenance. Transport cost is generally a period cost which includes expenses accumulated for a period and the quantum of service rendered during that period. It further helps to compare the cost of maintaining one group of vehicles with another group. Study ensures to know the fixed cost, i.e. the charges incurred inspite of the

kilometers run, and the variable cost i.e. the charges which vary more (or) less in the direct proportion to kilometers and others which vary more (or) less in the direct proportion to kilometers and others like petrol, oil and grease.

Thus, the analysis of costing method adopted in Transport Industry, with respect to KSRTC analyzes the cost of maintaining different group of vehicles, productivity of each vehicle, and the fluctuations arrived while comparing the previous years data.

5.3 SUGGESTIONS:-

Increase in vehicle utilization, to achieve the lower cost of operation per kilometer. Identifying the line checking by adopting selective method to increase the revenue. Improving quality of preventive maintenance of vehicles to minimize the incidence of breakdown and cancellation of service.

 Monitoring the operational activities as programmes and reviewing the actual performance in all aspects and taking the targets lay down in the program. Use of removed glasses from scrapped buses. Withdrawal of drivers from workshops who were found not required. Savings of additional expenditure on the purchase of sub assemblies for new bodies. Up keeping of bus stand and cleanliness & improvements of surroundings. Vehicles up keeping late arrival and late departure of buses. Increasing the quality of services so that the commercial revenue also increases. Giving training to the drivers and awarding them for their good services will reduce the rate of accidents. Maintaining the vehicles so that the fuel efficiency i.e., KMPL increases. Reducing the cost so the profit increases. The cost includes diesel, tyres, etc.,

CHAPTER . 6

BIBILIOGRAPHY

BIBILIOGRAPHY

TITLE
Cost Accounting

AUTHOR
S.P. Jain & K.L. Narang

PUBLICATIONS EDITIONS
Kalyani Publications 13th Edition 6th Revised & Enlarged Edition

Cost Accounting

R.S.N Pillai & V.Bhagavathi

S.Chand Publications

Principles & Practice of Cost Accounting Cost Accounting, Principles & practices

Ashish K. Bhattacharya.

Volume 1

Wheeler publishing

S.P Jain & K.L. Narang

Kalyani Publications

19th Edition

OTHERS: Five years Annual reports of the company. Company Broachers

WEBSITE:www.google.com www.ksrtc.com

CHAPTER. 7

ANNEXURES

Annual Administration Report

FARE STRUCTURE 1. Ordinary service

2007-08
SCHEDULE - B

35.00 paise per km minimum fare Rs. 4.00.

2.

Express Service

48.50 paise per km. Minimum fare Rs.5.00.

3.

Semi-deluxe Service

60.00 paise per km. Minimum fare of Rs.10.00 for a distance equal to 3 chargeable stages.

4.

Deluxe Services

67.00 paise per km. Minimum fare of Rs. 10.00 for a distance equal to 3 chargeable stages. 75.00 paise per km. Minimum fare of Rs. 10.00 for a distance equal to 2 chargeable stages.

5.

Ultra-Deluxe (Rajahamsa) Services.

6.

Rajahamsa semi sleeper.

83.00 paise per km. Minimum fare of Rs. 10.00 for a distance equal to 2 chargeable stages.

7.

Mayura executive.

90.00 paise per km. Minimum fare of Rs. 10.00 for a distance equal to 2 chargeable stages.

8.

Mayura semi sleeper.

100.00 paise per km. Minimum fare of Rs. 10.00.

9.

Volvo

106.00 paise per km. Minimum fare of Rs. 20.00 for a distance equal to 2 chargeable stages. 34.76 paise per km. Minimum fare of Rs. 2.50.

10.

City Services

11.

Sub-urban Services.

34.76 paise per km. Minimum fare of Rs. 3.00

Annual Administration Report

2007-08

FARE CHART FOR CITY AND SUB-URBAN SERVICES.

Chargeable stages 1. 2.

City services Adult (In Rs.) 2.50 4.00 Child (In Rs.) 1.50 2.00

Sub-urban Services Adult (In Rs.) 3.00 4.50 Child (In Rs.) 1.50 2.50

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

4.50 5.00 5.50 6.00 6.50 7.00 7.50 7.50 8.00 8.00 8.50 8.50 9.00 9.00 9.50 9.850 10.00 10.00

2.50 2.50 3.00 3.00 3.50 3.50 4.00 4.00 4.00 4.00 4.50 4.50 4.50 4.50 5.00 5.00 5.00 5.00

5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.00 8.50 8.50 9.00 9.00 9.50 9.50 10.00 10.00 10.50 10.50

2.50 3.00 3.00 3.50 3.50 4.00 4.00 4.00 4.50 4.50 4.50 4.50 5.00 5.00 5.00 5.00 5.50 5.50

Annual Administration Report

2007-08
SCHEDULE - C

RATES OF HIRING BUSES ON CASUAL CONTRACT

Type of bus

No. of Seats

Rate per km. (Rs)

Minimum Minimum amount kms. Per per day (24 hrs. day basis ) (Rs)

On hourly basis (Min. 40 kms per hour) (Rs)

Mini Bus Moffusil Karnataka Sarige Semi deluxe Deluxe Rajahamsa Rajahamsaexecutive Rajahamsa-Semi sleeper MayuraExecutive Mayura - Semi sleeper

41 56/51 56/51 45 39 39 36

16 19 22 23 24 27 27

250 300 300 300 300 350 350

4000 6000 6600 6900 7200 9450 9450

640 800 880 920 960 1080 1080

31

28

350

9800

1120

36

30

350

10500

1200

31

30

350

10500

1200

Volvo Volvo- Semi sleeper

45

50

500

25000

2000

36

50

500

25000

2000

Annual Administration Report

CATEGORYWISE PAY SCALES IN FORCE AS ON 31ST MARCH 2008

2007-08
SCHEDULE D

DESIGNATION

SCALE OF PAY

Chairman Vice- chairman & Managing Director Director (P& E) Director (S& V) Director (Technical) Director (Operation) General Manager ( Personnel)

To be appointed by the government To be appointed by the government To be appointed by the government To be appointed by the government To be appointed by the government To be appointed by the government To be appointed by the government

CLASS-I (SUPERTIME SCALE) OFFICERS General Manager (Technical) General Manager (Traffic) Chief Accounts Officer-cum-Financial Advisor

Rs. 13835-420-17195-480-18155 (10 years)

LASS-I (SELECTION GRADE) OFFICERS Chief Personnel Manager (Disciplinary) Chief Accounts Officer Chief Mechanical Engineer Controller of Store & Purchases Chief Law Officer Chief Civil Engineer Chief Traffic Manager Chief Medical Officer Manager (HRD) Chief Systems Manager Chief Planning & Statistical Officer Chief Marketing Manager Principal (CTI) Senior Divisional Controller

Rs.11125-360-13285-420-17065480-17545 (16 years)