FINANCIAL PERFORMANCE OF INDIAN RAILWAY

Abstract

Indian railway is a popular mode of transport in India. It provides comfortable journey to every class of people. It is very helpful in transferring heavy & large materials like jute, cement, petroleum etc. from one part of the country to another part. It is the world’s largest government-owned monopoly, annually carrying passenger numbers that surpass the global population. It is world’s fourth largest rail network after the U.S.A., China, and Russia, and is managed by a separate Ministry of Railways. The operating ratios have consistently been around 90% in the past several years, indicating that that the capability to generate operational surplus is low. Further, its expenditure on staff and their pensions has been increasing. Consequently, capacity growth is increasingly being funded through borrowings, which threatens to further worsen the financial situation. Thus, Railway services in India are often perceived as being inefficient and unsatisfactory. This paper shows a review of assets and liabilities of Indian Railways. This paper is focused on total assets and total liabilities of Indian Railway. The study is entirely based on secondary data that is from annual reports of Indian railway. Share capital, Reserve and Surplus, Current liabilities, Current Assets and Fixed Assets are mentioned. The study covers the period of seventeen years (from year 2005 to year 2021) and discusses ups and downs within this area.