Every year we get a mail and then visit from officer of Statistical Department and they give some form to fill up and also want the company balance sheet. We give them the required information and also have to give them some amount. There is no problem but I just wanted to know if giving information like a balance sheet to the statistical department is compulsory? What is their authority and what would happen if we do not entertain them?
From India, Aurangabad
Dear HBJ,

The submission of information to the statistical department is an activity that repeats every year. Then could you find out this department is a part of which ministry? Is it a part of the union government or the state government? The persons working in the department are the best persons to give a reply as to what happens to the information that you provide to them. Do they do research on the industry segment to which your company belongs?

Nevertheless, if you look at the larger picture, the department of statistics must be collating the information that you provide and it must be useful to the economic research cell of either Ministry of Industry of the Ministry of Commerce. Accurate data is a basic requirement for making the policies. If the business owners start withholding the information then how the policymakers will formulate the policies related to import, export, domestic consumption, taxes and so on? So let us not starve them of the vital information.

Thanks,

Dinesh Divekar

From India, Bangalore
Dear Dineshji, thanks for the reply. This is the NSO department, I think must be Central Government. I do agree with your point and we will definitely provide the required information, we always do.
However my question is whether this is compulsory and what is the authority of the NSO officer? Many times Government employees behave in an intimidating way with employees and "demand" information rather than request it, as if they will penalize if the information is not provided properly or in time. They also expect something in return always.
We already provide details of employees to various departments like labor, employment exchange etc from time to time. This is available online with PF department also. The balance sheet is available with MCA. I do not see why does the statistical department needs to get this from each industry in written forms.

From India, Aurangabad
Dear HBJ,
You have written, "Many times Government employees behave in an intimidating way with employees". However, this is happening in most of the government departments whether from central or state government. Therefore, nothing new if employees of NSO demand the information.
Further, you have written, "We already provide details of employees to various departments like labor, employment exchange etc from time to time. This is available online with PF department also. The balance sheet is available with MCA. I do not see why does the statistical department needs to get this from each industry in written forms".
Yes, what you say is correct. The information should be submitted only once and the various agencies can derive the information from that source. Nevertheless, it requires the integration of all the government departments vertically as well as horizontally. This never happened earlier and neither happen in future too. The government ministries or departments work in silos. They do not have any vision beyond their department.
I had a chance to work in an MNC that operated in 220 countries! Notwithstanding the enormousness of their operations, the work went on smooth. Because of automation, most of the work happened on its own and there were no data entry operators. They had done tremendous investment in developing their own IT systems.
We need a leadership that has a vision that takes a holistic view. In our country, we did not have a PM who had worked in some MNC. Though Shri Rajiv Gandhi worked as an employee, he was a pilot and that too in a government service like Air India. With his background in bureaucratic organisation, the bureaucracy continued during his regime also.
For the method of work that you are expecting, we need visionary leadership, who launches administrative reforms vigorously. But then which political leadership will do that? They always want servile or subservient officers who are famously called "babus". What you are witnessing is a "babugiri" that we inherited from the British. No political leader worth of his/her salt has the acumen to shed the bureaucracy. Therefore, let us accept it without grumbling!
Thanks,
Dinesh Divekar

From India, Bangalore
Dear HBJ,
Annual Survey of Industries (ASI) is conducted by the Ministry of Statistics and Programme Implementation under the Collection of Statistics Act,2008 through the State Statistical Departments. As per the Act, it is obligatory on your part to furnish the return in the prescribed format mentioned in the notice issued u/s 5 of the Act. Failure would be punishable with fine which may be in the range of Rs.5000/= to 10000/=.

From India, Salem
Dineshji, I agree. Not possible to change the bureaucracy and corruption which is now in our genes. Have to accept it without grumbling as you write rather than get frustrated.
Umakanthanji, thank you for the information, this is what I wanted to know. Yes, we will provide the information needed as we do every year. Only wish Government babus had some basic decency and training on how to interact with people. Guess that's too much to ask.

From India, Aurangabad
As Umakanthan ji has correctly replied, this is a statutory requirement and you are obliged to give it.
As for giving the balance sheet, Balance Sheet of a Company (both private and public) as well as for LLP is a public document and can be seen by anyone from MCA website. So there is no secret you are sharing by giving them the balance sheet
The indian jurisprudence provides that in case of an organisation with limited liability, the person doing business with the organisation is doing so at his own risk and liability and therefore, he should have access to your Annual Accounts to figure out whether you are a safe customer / vendor. Therefor any one who is doing business with you, can demand a copy of your annual accounts.

From India, Mumbai
Hello Saswata. I understand now that it is a statutory requirement and we do always give this information. Just wanted to be sure because of the attitude of the person demanding the same, as I had written above. Thanks for your input.
From India, Aurangabad
HBJ
Actually, many companies do ignore them because they have very few rights. I had a client who said he will happily pay the ₹ 10,000 penalty rather than waste time giving them the data.
But coming back to the original question, i have 2 points to make:
1. Balance Sheet (I guess you mean published annual accounts) is a public document, so you may as well give them
2. You need to read the act and check what documents they can actually ask for (i have read it long long back so i dont remember)
If the data they are asking is not in the act, you can actually refuse to give it.

From India, Mumbai
Learned Shri Umakantan has placed things in the true perspective. May be Indian bureaucracy may be deficient in professionalism. But the are the managers in the private sector any different in as much as the querist himself concedes that "We give them the required information and also have to give them some amount"!
From India, Kochi
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