Annual Survey of Industries

1.1  INTRODUCTION
                                               
The Industrial Sector plays a pivotal role in the rapid and balanced economic development of the Country as well as the State. The statistical data base on various aspects of this important sector of the economy are the key factors for analysing the course of development. 

The Annual Survey of Industries (ASI) is the major source of industrial statistics in the Country as well as in the State. It provides desirable statistical information to assess and evaluate various related aspects in the field of organized sector of Industry. The collection and dissemination of ASI data regularly are vital source of information for industrial policy makers, planner and researchers. The survey is conducted annually under the statutory provisions of the Collection of Statistics Act, 1953 and the rules framed in 1959 under section 14.

The ASI is carried out by Field Operation Division (FOD) of National Sample Survey Organisation (NSSO), Government of India through its network of Zonal/ Regional/ Sub-Regional offices. It had been designed to obtain comprehensive and detailed data for the following objectives viz.-

(i)          Estimation of the contribution of industrial sector in the State economy.
(ii)         Systematic study of various structural aspects of the industry.
(iii)        Analysis of various factors influencing the industrial sector in the State and / or Country.

(iv)        Construction of comprehensive, factual and systematic bases for formation  of policy.

The National Sample Survey Organisation (NSSO), (FOD) is the Statistical Authority appointed under this act for the purpose of collection of these statistics. The Central Statistical Organisation (CSO) is responsible for processing and tabulation of data and publication of the results. However, the State Directorate of Economics & Statistics (DES) participates in this exercise conducting the survey of sample industries. It is also responsible for the timely conduct of the ASI in the State and to publish State report for this purpose.

This report of Annual Survey of Industries which refers to the year 2004-2005 and 2005-2006 is based on the data published by the Central Statistical Organisation (Industrial Statistics Wing), Government of India and the estimated figure derived from sample sector relating to our State as well as at district levels. The report presents a comparative study of the estimates of the principal characteristics and its percentage distribution for the state of Assam and at district levels alongwith their graphical presentation.

1.2 SCOPE AND COVERAGE OF ASI
The coverage of the survey extends to the entire factory sector comprising industrial units (factories) registered under the section 2m(i) and 2m(ii) of the Factories Act-1948 i.e. those factories employing 10 or more workers using power and those employing 20 or more workers without using power. In addition to section 2(m)(i) & 2(m)(ii) of the Factories Act, 1948, bidi and cigar units, employing 10 or more workers with the aid of power and 20 or more workers without the aid of power and registered under the Bidi & Cigar Workers (Condition of Employment) Act, 1966 are also covered in Annual Survey of Industries.
Although the scope of the ASI was extended to all registered manufacturing establishments in the country, establishment under the control of the Defence Ministry, oil storage and distribution units, restaurants and cafes and technical training institutions not producing anything for sale or exchange were kept outside the coverage of Annual Survey of Industries.

1.3  ASI FRAME
The ASI frame is based on the lists of registered factory / units maintained by the Chief Inspector of Factories (CIF) in the State and those maintained by registration authorities in respect of bidi and cigar establishments and electricity undertakings. The frame is being revised and updated periodically by the Regional Offices of the Field Operation Division of National Sample Survey Organisation (NSSO) in consultation with the Chief Inspector of Factories in the State. At the time of revision, the names of the de-registered factories are removed from the ASI frame and those of the newly registered factories are added. In updation, only new registrations are added to the existing frame. In spite of regular updating of the frame, quite a number of small-sized factories selected for the survey are found to be non-existing in the field and are termed as deleted factories. However, such factories are not taken into consideration for the purpose of tabulation and analysis in this report.

All electricity undertakings other than captive units as well as all departmental undertakings such as Railway workshops, etc. have been kept outside the purview of ASI from 1999-2000.

1.4  UNIT OF ENUMERATION
The factory in the case of manufacturing industry, a workshop in case of repair services, an undertaking or a licensee in the case of electricity, gas and water supply and establishment in the case of bidi and cigar industry are the primary units of enumeration.

1.5  CLASSIFICATION OF FACTORIES
The NIC- 1970 was followed to classify economic activities of the factories from ASI 1973-74 to ASI 1988-89. NIC- 1987 had then been introduced and followed till ASI 1997-98. From ASI 1998-99 to ASI 2003-04 classification of NIC- 1998 has been followed. From ASI 2004-05 the new series of classification i.e. NIC- 2004 has been introduced. This classifies all the factories in the ASI frame in their appropriate industry groups on the basis of the principal product manufactured.

1.6  SAMPLING DESIGN AND SAMPLE ALLOCATION
As per the decision taken by the Standing Committee on Industrial Statistics, a new sampling design has been adopted from ASI 2004-2005. According to the new sampling design, the samples are to be selected in such a manner so as to cover the entire ASI frame in five years. For the purpose of sampling, the entire frame (main frame of 2004-2005) has been divided into (a) Census Sector (C), where all the units are to be selected for survey in every year during ASI 2004-2005 to ASI 2008-2009 and (b) Sample Sector (S), where a minimum of one fifth of the units are to be selected for every year so that the entire frame is surveyed during ASI 2004-2005 to ASI 2008-2009. In respect of new units registered under year 2005-2006, a supplementary frame has been prepared and units from the supplementary frame has been selected using the same criteria as applied to the main frame.

From the ASI 2004-2005 the Census Sector has been defined as:

(a) All industrial units (IU) belonging to five less industrially developed States / UT’s viz. Manipur, Meghalaya, Nagaland, Tripura and Andaman & Nicobar Islands.
(b) For the rest of the States / UT’s, the Census Sector includes -
(i)  Units having 100 or more workers.
(ii) All factories covered under Joint Returns.

The remaining factories of the ASI frame fall under Sample Sector.

Field work of the Census Sector was exclusively done by the NSSO, (FOD). A sample of industrial units was also selected from the Sample Sector for data collection by NSSO (FOD). The estimates derived for the sample sector were added to totals computed for the Census Sector to arrive at State level estimates based on ASI (Central Sample).

In the State the Sample Sector (S) is divided into a number of strata as 4-digit level of NIC- 2004. In general, a sampling fraction of 20 per cent (25 per cent in case of supplementary frame) in the Sample Sector was taken for sampling with a minimum of six samples in each stratum.

1.7 ASI SCHEDULE

The data of ASI are collected both by the State and the Central in a well designed proforma. The Central Statistical Organisation (IS Wing) prepared and supplied the schedules for canvassing the same to the state sample units of the Sample Sector. Data are directly collected from the selected factories in the prescribed proforma filled up by the management. Some of the important features of the industrial activities like assets and liabilities, employment and labour cost, receipts, expenses, input items – indigenous and imported, products and by-products, distributive expenses etc. were collected through the ASI schedules.

CONCEPTS AND DEFINITIONS

1.REFERENCE YEAR
 The ‘Reference Year’ of ASI is the accounting year of the factory. For ASI 2004-2005, survey was conducted in the establishments where accounting year ended on any day during the period 1st April, 2004 to 31st March, 2005 while the survey was conducted in 2005-2006. Similarly for ASI 2005-2006 the accounting year of the factory was the ending of 31st March, 2006 while the survey was conducted in 2006-2007.

2. FACTORY

‘Factory’ is one, which is registered under sections 2m (i) and 2m (ii) of the Factory Act, 1948. The section 2m (i) and 2m (ii) refer to any premises including the precincts thereof (a) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on or (b) whereon twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.

3. FIXED CAPITAL

‘Fixed Capital’ represents the depreciated value of fixed assets owned by the factory as on the closing day of the accounting year. Fixed assets are those that have a normal productive life of more than one year. Fixed capital includes land including lease-hold land, buildings, plant and machinery, furniture and fixtures, transport equipment, water system and roadways and other fixed assets such as hospitals, schools etc. used for the benefit of factory personnel.

4. PHYSICAL WORKING CAPITAL

‘Physical Working Capital’ is the total inventories comprising of raw materials and components, fuels and lubricants, spares, stores and others, semi-finished goods and finished goods as on the closing day of the accounting year. However, it does not include the stock of the materials, fuels, stores etc. supplied by others to the factory for processing and finished goods processed by the factory from raw materials supplied by others.

5. WORKING CAPITAL

‘Working Capital’ is the sum total of the physical working capital as already defined above and the cash deposits in hand and at bank and the net balance receivable over amounts payable at the end of the accounting year. Working capital, however, excludes unused overdraft facility, fixed deposits irrespective of duration, advances for acquisition of fixed assets, loans and advances by proprietors and partners irrespective of their purpose and duration, long-term loans including interest thereon and investments.

6. PRODUCTIVE CAPITAL

‘Productive Capital’ is the total of fixed capital and working capital as defined above.

7. INVESTED CAPITAL

‘Invested Capital’ is the total of fixed capital and physical working capital as defined above.

8.GROSS VALUE OF PLANT AND MACHINERY

‘Gross Value of Plant and Machinery’ represents the total original (undepreciated) value of installed plant and machinery at the end of the accounting year. It includes the book value of the newly installed plants and machinery and the approximate value of rented in plants and machinery at the time of renting-in but exclude the value of rented-out plants and machinery. Total value of all the plants and machinery acquired on hire-purchase basis is also included.

9. OUTSTANDING LOANS

‘Outstanding Loans’ represents all loans whether short term or long term, whether interest bearing or not, outstanding according to the books of the factory as on the closing day of the accounting year.

10. RENT PAID

‘Rent Paid’ represents the amount of royalty paid in the nature of rent for the use of the fixed assets in the factory.

11.INTEREST PAID

‘Interest Paid’ includes all interest paid on factory account on loans, whether short term or long term, irrespective of the duration and the nature of agency from which the loan was taken. Interest paid to partners and proprietors on capital or loan are excluded.

12.RENT RECEIVED

‘Rent Received’ represents the amount of royalty received in the nature of rent for the use of the fixed assets in the factory.

13.INTEREST RECEIVED

‘Interest Received’ includes all interest received on factory account on loans, whether short term or long term, irrespective of the duration and the nature of agency to which the loan was given. Interest received from partners and proprietors on capital or loan are excluded.

14.WORKERS

 ‘Workers’ are defined to include all persons employed directly or through any agency whether for wages or not and engaged in any manufacturing process or in cleaning any part of the machinery or premises used for manufacturing process or in any other kind of work incidental to or connected with the manufacturing process or the subject of the  manufacturing process. Labour engaged in the repair and maintenance or production of fixed assets for factory’s own use or labour employed for generating electricity or producing coal, gas etc. are included.

15. EMPLOYEES

‘Employees’ include all workers defined above and persons receiving wages and holding supervisory or managerial positions engaged in administrative office, store keeping section and welfare section, sales department as also those engaged in purchase of raw materials etc. or purchase of fixed assets for the factory and watch and ward staff.

16.TOTAL PERSONS ENGAGED

‘Total Persons Engaged’ include the employees as defined above and all working proprietors and their family members who are actively engaged  in the work of the factory even without any pay and the unpaid members of the co-operative societies who worked in or for the factory in any direct and productive capacity.
The number of workers or employees is an average number obtained by dividing mandays worked by the number of days the factory had worked during the reference year.

17. MANDAYS

‘Mandays’ represent the total number of days worked and the number of days paid for during the accounting year. It is obtained by summing-up the number of persons of specified categories attending in each shift over all the shifts worked on all days.

18. WAGES and SALARIES

‘Wages and Salaries’ are defined to include all remuneration in monetary terms and also payable more or less regularly in each pay period to workers as compensation for work done during the accounting year. It includes (a) direct wages and salary (i.e. basic wages/salaries, payment of overtime, dearness, compensatory, house rent and other allowances);  (b) remuneration for the period not worked (i.e. basic wages, salaries and allowances payable for leave period, paid holiday, lay-off payments and compensation for unemployment, if not paid from sources other than employers); (c) bonus and ex-gratia payment paid both at regular and less frequent intervals (i.e., incentive bonuses, productive bonuses, profit sharing bonuses, festival or year-end bonuses etc.). It excludes lay off payments which are made from trust or other special funds set up exclusively for this purpose i.e., payments not made by the employer. It also excludes imputed value of benefits in kind, employer’s contribution to old age benefits and other social security charges, direct expenditure on maternity benefits, crèches and other group benefits, traveling and other expenditure incurred for business purposes and reimbursed by the employer are excluded. The wages are expressed in terms of gross value i.e., before deduction for fines, damages, taxes, provident fund, employee’s state insurance contribution etc.

19. CONTRIBUTION to PROVIDENT FUND and OTHER FUNDS

‘Contribution to Provident Fund and Other Funds’ includes old age benefits like provident fund, pension, gratuity etc. and employers contribution towards other social security charges such as employees state insurance, compensation for work injuries and occupational deceases, provident fund-linked insurance, retrenchment and lay off benefits.

20. WORKMEN and STAFF WELFARE EXPENSES 

‘Workmen and Staff Welfare Expenses’ include group benefits like direct expenditure on maternity, crèches, canteen facilities, educational, cultural recreational facilities, and grants to trade unions, co-operative stores etc. meant for employees.

21.TOTAL EMOLUMENTS

‘Total Emoluments’ is defined as the sum of wages and salaries, employers’ contribution as provident fund and other funds and workmen and staff welfare expenses as defined above.

22.FUELS CONSUMED

‘Fuels Consumed’ represents total purchase value of all items of fuels such as coal, liquified petroleum gas, petrol, diesel, electricity, lubricants, water etc. consumed by the factory during the accounting year but excluding the items which directly enter into the manufacturing process.

23. MATERIALS CONSUMED

‘Materials consumed’ represents the total delivered value of all items of raw materials, components, chemicals, packing materials and stores which actually enter into the production process factory during the accounting year. It also includes the cost of all materials used for the construction of building etc. for the factory’s own use. It, however, excludes all intermediate products consumed during the accounting year. Intermediate products are those products, which are produced by the factory but are subject to further manufacturing.

24.EX-FACTORY VALUE

‘Ex-Factory Value’ of all products and by-products manufactured is attained at the rate of net sale-value (inclusive of subsidies etc.) with respect to each of the items.

25.TOTAL INPUT

‘Total Input’ comprises total value of fuels, materials consumed as well as expenditures such as cost of contract and commission work done by others on materials supplied by the factory, cost of materials consumed for repair and maintenance work done by others to the factory’s fixed assets, inward freight and transport charges, rate and taxes (excluding income tax), postage, telephone and telex expenses, insurance charges, banking charges, cost of printing and stationery and purchase value of goods sold in the same condition as purchased. Rent paid and interest paid is not included.

26. TOTAL OUTPUT

‘Total Output’ comprises total ex-factory value of products and by-products manufactured as well as other receipts from non industrial services rendered to others, work done for others on materials supplied by them, value of electricity produced and sold, sale value of goods sold in the same conditions purchased, addition in stock of semi-finished goods and value of own construction. Rent received and interest received is not being included from the ASI 2001-2002.

27. DEPRECIATION

‘Depreciation’ is consumption of fixed capital due to wear and tear and obsolescence during the accounting year and is taken as provided by the factory owner or is estimated on the basis of cost of installation and working life of the fixed assets.

28.NET VALUE ADDED

‘Net Value Added’ is arrived by deducting total input and depreciation from total output.

29.COMPONENTS AND ACCESSORIES CONSUMED

‘Components and Accessories Consumed’ are the portion of materials consumed and shown separately to represent as a special type of consumption.

30.  IMPORTED MATERIALS CONSUMED ON ACTUAL USE

‘Imported Materials Consumed on Actual Use’ comprise the portion of materials consumed that are imported from other countries. It may be raw materials or fuels or components and accessories of the input basket.

31.SEMI-FINISHED GOODS

‘Semi-Finished Goods’ refer to the imputed value of all materials which have been partially processed by the factory but which are not usually sold without further processing. It includes the work in progress for materials supplied by others, but excludes the value of semi-finished fixed assets produced for factory’s own use.

32.FINISHED GOODS

‘Finished Goods’ of the factory are the ultimate products ready for sale. It does not require further processing but needs packaging and labeling etc.

33.NET INCOME

‘Net Income’ represents the factor shares of employees and entrepreneur in the value added is obtained by deducting the rent paid and interest paid from the value added.

34.  PROFIT
‘Profit’ is the excess of net income over the total emoluments of all employees.

35.NET FIXED CAPITAL FORMATION

‘Net Fixed Capital Formation’ represents the excess of net fixed capital at the end of accounting year over that at the beginning of the year.

36.GROSS FIXED CAPITAL FORMATION

‘Gross Fixed Capital Formation’ is obtained by adding depreciation to net fixed capital formation.

37.  GROSS CAPITAL FORMATION

‘Gross Capital Formation’ is obtained by adding total addition in stocks of materials, fuel, semi-finished goods and finished goods to gross fixed capital formation.

THE STATISTICS AND ITS ANALYSIS

3.1 SALIENT FEATURES OF INDUSTRIAL SECTOR: ASSAM 2004-05 and 2005-06

Salient features at State level: - Attempts have been made in this chapter to describe the salient features of industrial sector of Assam (both at State level as well as District level) based on the data of Annual Survey of Industries 2004-2005 and 2005-2006. Some of the important characteristics along with structural ratios and technical co-efficient have also been describe for the years under reference.

Table- 1-A

PRINCIPAL CHARACTERISTICS BY MAJOR ECONOMIC ACTIVITY : 2004-05 & 2005-06

3.2  STRUCTURAL RATIOS AND TECHNICAL CO-EFFICIENTS
Here in this chapter attempts have been made to derive a picture relating to the structural ratios and technical co-efficient per industrial unit in respect of fixed capital, productive capital, gross output, workers, employees and per employee in respect of fixed capital, productive capital, emoluments etc.  It has also been attempted to derive the ratios per employee in respect of net value added, emoluments and wages also.

STRUCTURAL RATIOS AND TECHNICAL CO-EFFICIENT BY MAJOR ECONOMIC ACTIVITIES : 2004-2005 AND  2005-2006

3.3      DISTRIBUTION OF FACTORIES
Distribution of factories at 2-digit level of NIC-2004 code in the years 2004-2005 and 2005-2006 with description of industries is shown in Table No.1-C.

3.4      DISTRIBUTION OF FIXED CAPITAL
Table No. 1-D and following Chart No.4 shows the distribution of fixed capital at 2-digit level of NIC-2004 code by type of industry during the year 2004-2005 and 2005-2006.

3.5      DISTRIBUTION OF PRODUCTIVE CAPITAL
Distribution of productive capital at 2-digit level of NIC-2004 code in the year 2004-2005 and 2005-2006 with activity of industries is shown in Table No.1-E and in the following graph (Chart No.5).

3.6      DISTRIBUTION OF INVESTED CAPITAL
Distribution of invested capital at 2-digit level of NIC-2004 for the year 2004-2005 and 2005-2006 with description of industrial activity is shown in Table No. 1-F and Chart No.6.

3.7  DISTRIBUTION OF TOTAL INPUT

Table No. 1-G and the following graph (Chart No.7) show the distribution of total input at 2-digit level of NIC-2004 code with description of industries during the year 2004-2005 and 2005-2006.

3.8  DISTRIBUTION OF GROSS OUTPUT

Distribution of gross output at 2-digit level of NIC-2004 code in the year 2004-20045 and 2005-2006 with description of industries is shown in Table No. 1-H with a graphical representation (in Chart No.8).

3.9   DISTRIBUTION OF NET VALUE ADDED (NVA)
Distribution of net value added (NVA) at 2–digit level of NIC–2004 code in the year 2004-2005 and 2005-2006 with description of industries is shown in Table No. 1-I and following Chart No.9.

4.2 Distribution of Fixed Capital

4.3 Distribution of Productive Capital

4.4 Distribution of Invested Capital

4.5 Distribution of Total Input

4.6 Distribution of Gross Output

4.7 Distribution of Net Value Added

CHAPTER – 5

COMPARATIVE STUDY WITH ALL INDIA

Capitals, Employed, Input, Output and G V A at Industry : All India & Assam

Employment and Emolumenta at Industry - All India & Assam

(C) Structural Ratios and Technical Co-Efficient:
Structural ratios and technical co-efficient of factories in the state of Assam and all India for the years 2004-2005 and 2005-2006 are presented in the Table No.3-C.