<h1>Audit finds freight profits used to cross-subsidise large passenger losses, understating total expenditure despite reported surplus</h1> A government audit found freight profits were used to cross-subsidise passenger and coaching losses in 2022-23 and identified an upward trend in net profits of railway public sector enterprises. Consolidated accounts showed a surplus of Rs 2,517.38 crore, but cross-subsidisation records indicated a net loss of Rs 5,257.07 crore, leading auditors to conclude total working expenditure was understated. Passenger operations incurred large losses (reported aggregate loss ~Rs 60,041.18 crore) offset by goods profits (~Rs 54,784 crore); the biggest operational losses were in Sleeper, Ordinary and Second classes. The operating ratio improved to 98.10% in 2022-23.