National Sample Survey, 2006-2007 (63rd round) - Schedule 2.345 - Service Sector Enterprises

Block 1: Identification of Sample Enterprise. Block 1 has 21 items. Most of the items of this block are coded. The codes are described either beside the items or at the bottom of the block. Items 6 to 16 of this block are not applicable for the enterprises surveyed through the list frame.

Block 11: Particulars of field operation

Items in this block are self-explanatory. While filling up the schedules, care is to be taken to record the time taken in canvassing the schedule in minutes (and not in hours) against item 1102 of this block. Dates of survey/inspection, etc. should be made as DD/MM/YY since these will be required in data processing.

Block 12: Remarks by investigator and comments by supervisor(s)

Block 12 (and 13) are meant for noting down the field-worker's remarks/ supervisor's comments/ suggestions regarding the entries made in Schedule 2.345. Their observations will be very important for understanding various entries in the schedule, particularly the abnormally high or low figures (e.g., value added) and also helps in understanding the field situation and accordingly improve the system of data collection and processing in future.

Separate boxes have been provided in block 12 first to ascertain whether gross value added figure arrived at after canvassing the schedule is negative or not. If it is negative, appropriate code against item 1202 has to be given corresponding to reason of negative entry. Codes for this item are:
- output during reference period much less than operating expenses-1,
- new unit with insufficient output-2,
- loss of output due to fire, theft, etc-3,
- high previous year expenses accounted in present year(for books of accounts only)-4,
- others (specify in detail giving the actual reason)-9

Wherever data is recorded from books of accounts, the respondent enterprise /company may be requested to provide a copy of the same. If they oblige, the books of accounts may invariably be attached with the schedule. This helps to scrutinise the schedules, particularly during data processing and subsequent stages of tabulation. If data is recorded from books of account then entry in item 1203 will be '1' .Otherwise entry will be '2'.If entry in item 1203 is '1' and balance sheet is attached with the schedule then item 1204 will contain '1'. Otherwise the code will be '2' and in that case reason for not attaching the schedule will be recorded in the blank space after item 1204.

Some operational characteristics and background information of the enterprises.
In this block some background information about the nature and operation of the enterprises and the exact reference month/ year of data collection will be recorded. Care may be taken so that invalid codes are not entered, particularly in case of codes pertaining to NIC. The item numbers in this block have been provided after the item description to facilitate data entry. Care may be taken so as to maintain clear gap between the item numbers printed in the schedule and the codes recorded by the field staff.

Details of vehicles operated (owned/hired) during last 30- days/ calendar month

This block will be filled up for enterprises who operate vehicles, i.e., all enterprises engaged in land transport activity (NIC 2004 class 6021, 6022 and 6023)., major or minor. It will also be applicable to other enterprises who use the enterprise vehicles for its different operations, like inward/outward transportation of goods/services, companies using own vehicles for transportation of staff, hospitals running its own ambulances, schools running its own buses, sewage and refuge disposal enterprises running its vehicles for disposal of garbage, etc. The NIC codes given at the top of a set of items in this sub-block indicate the type of vehicle, i.e., whether it is motor or non-motor and the purpose, i.e., whether it is mainly for passenger (human) or freight (non-human). Different columns of this block are as below-

Col 1: Corresponds to type of vehicle, e.g., bus, taxi, etc.
Col3: Total number of vehicles of a particular type
Col 4: This column will have the count of vehicles, which are less than 5 years old.
Col 5: This column will have the count of vehicles, which are 5 to 9 years old.
Col 6: Number of vehicles of age more than or equal to 10 years will be entered in this column.
Col 7: Payload capacity (authorised carrying capacity) of all the vehicles of a particular type will be entered in this column. The capacity should be entered in tonnes. The nearest whole number should be taken for this purpose.
Col 8: Total distance covered (in whole number of km) of all the vehicles of a particular type during reference month will be entered in this column. Reference month for this item (for all types of enterprises) will be last 30 days or last calendar month, whichever suits the informant.
Age of the vehicle (in col 3-5) should be recorded in completed number of years. In case of second-hand vehicles, entire period after first purchase will be considered.

Loan transaction of Self-Help Group / Co-operative Credit Society

This block will be filled up only for enterprises belonging to NIC 2004 sub-class 65994 and 65995. Also note that each of the items is for recording number of members according to some criterion as on the date of survey.

Blocks 3 and 3.1: Principal and other operating expenses

Block 3: Selected important operating expenses during the reference month

Block 3.1: Other operating expenses during the reference period. This block will contain the overall expenses of the enterprise. If some of the items have already appeared in block 3, care should be taken so that they are not repeated in this block. Entire expenditure of enterprises engaged in other community, social and personal services (NIC 04 divisions 90 to 93) will be reported in this block.
- It must be noted that items will first be filled in block 3 and only those not covered in that block, will be filled in block 3.1, i.e., block 3 will get priority over block 3.1.
- Fines and penalties (for example payments for late submission of returns), loss due to chits and funded accounts, which are not part of intermediate consumption, will not be considered.

Blocks 3 and 3.1 are the two blocks where operating expenses of the enterprises will be collected. The principal operating expenses will be covered in block 3 and operating expenses not included in block 3 will be covered under block 3.1. The reference period for the blocks will be reference year if information is recorded from the books of accounts, and reference month if information is received orally, as mentioned in paragraph 3.0.2.

- If some expenses are made on yearly or half-yearly basis, those are to be properly apportioned for the reference month and recorded.
- For items where payments are not yet made, payable amount may be obtained and recorded. Estimated charges may be recorded in such cases.
If any of the items of block 3.1 is already covered under block 3, then it should not be repeated in block 3.1. Both theses blocks should be filled up in such a way that there is no duplication and omission.

Blocks 3 to 5:- Data on receipts and expenditure of all non-financial enterprises will be collected using these blocks. Items 301 to 395 of blocks 3 and 3.1 and item 502 of block 5 are for collecting data on various items of intermediate consumption of an enterprise. Items 401 to 487 of blocks 4 and 4.1 will record the receipts due to entrepreneurial activities. Block 5 will be used to record other items of expenses and receipts of these enterprises. Care may be taken so that there is no omission or duplication of entries on expenses between blocks 3, 3.1 and items 501 to 514 of block 5. Similarly, omission or duplication of recording receipts may be avoided between blocks 4, 4.1 and items 531 to 544 of block 5. If the value of the receipts in block 4 is collected at ex-factory price, then distributive expenses will not be recorded in item 453. Gross value added using product approach will be computed using block 4.2. In normal situations, gross value added is found as positive. However, if the gross value added arrived at is negative, remarks as per specified codes, and additional remarks, whenever necessary, must be provided in blocks 12 and 13.

Block 4: Principal receipts

Block 4 will record the principal receipts in seven sub-blocks corresponding to which the principal expenses have already been collected in block 3. The items are earmarked activity wise in the sub-blocks against which the selected important receipts will appear. The following general points may first be noted for recording data in blocks 4 and 4.1:
i. Reference period for this block will be same as the one used for blocks 3 and 3.1.
ii. There will be some commonality in items between blocks 4 and 4.1. Precaution has to be taken that whenever an item has already been covered in block 4, receipts are not duplicated against a similar item in block 4.1.
iii. The value of services produced for sale/ use/ free distribution/ home consumption will be recorded in whole number of rupees.
iv. The value of the services as charged from the customers will be reported here. It includes excise duty payable or sales tax realised by the enterprise on behalf of the Government as also all the distributive expenses such as, discount or rebate, allowances for returnable cases and other packing or any other drawback allowed to customers, charges for carriage outward (i.e., outward transportation), commission to selling agents, etc.
v. Care may be taken that the distributive expenses included in the receipts in block 4 are consistent with those recorded in item 453 of block 4.2.
vi. For grants/donations please refer to paragraph 3.0.7.

- First sub-block: Hotel and restaurant activities (NIC-04 group 551 and 552): In this sub- block all principal receipts in relation to the hotel and restaurant activity will be recorded. Four items are kept for the purpose.
- Second sub-block: transport (NIC-04 group 602, 611, 612, class 6301 and 6303 to 6309)
- Third sub-block: storage (NIC-04 class 6302): Item 408 is intended to collect the service charges received by the storage and warehousing enterprises. Godowns used for storing of own produce are not to be considered. No imputation is needed if commodities are stored in one's own warehouse.
- Fourth sub-block: communications (NIC-04 group 641 and 642): Total charges receivable from customers (STD/ ISD/ courier/ fax/ internet/ e-mail, etc.) services will be noted against item 411. The receipts for services provided during the reference period will only be recorded by receivable approach. Total receipts means both the payments made to service providers and the commissions.
- Fifth sub-block: real estate, renting and business activities (NIC-04 division 70 - 74): Receipts from service provided and brokerage charges are to be recorded against items 412 and 413 respectively.
- Sixth sub-block: Educational activities (NIC-04 group 801, 802, 803 and 809): The receipts include earnings from fees (tuition fee, transport fee, laboratory fee, library fee, development fee, etc), and donations/ grant from government as well as individual persons/ organisations. Receipts from students on account of sale of textbooks or uniforms will also be shown.
- Seventh sub-block: health and social work (NIC-04 group 851, 852 and 853): Like educational enterprises, here also receipts include earnings from consultation fees, receipts for various services provided, government grants and donations from persons and organizations. Many medical practitioners do not only charge consultation fee, but also makes the purchase of medicines against his prescription from his dispensary obligatory. In such cases, receipt against this prescription will also be shown as receipts of the doctor. In case of hospitals or nursing homes, receipts for service other than that rendered by doctor like OT charge, pathological tests, and expenditure on diet for patients, cabin, ICCU, etc. may be shown against respective items described below.

Block 4.1: Other receipts during the reference period

This block is applicable to all enterprises. For the specific activities mentioned in the seven sub- blocks of block 4, this block will record the receipts not covered there. But for all other community, social and personal services etc. this block will provide the principal and also the incidental receipts. This block is having two sub-blocks-receipts from manufacturing and trading and other receipts.
- First sub-block: Receipts from manufacturing and trading
- Second sub-block: Other receipts

Block 4.2: Calculation of gross value added for the reference period
This block has only three items. The items 451 and 452 are transfer entries from blocks 3, 3.1, 4 and 4.1 and are mostly self-explanatory. Item 453 will be used to record the distributive expenses which include excise duty, sales tax, VAT, commission to selling agents, outward freight and transport charges, etc. of the enterprise. Care may be taken so that the sum of distributive expenses recorded in item 453 is consistent with those incorporated in column 3 of block 4. If values of receipts are collected at ex-factory price, distributive expenses should not be recorded. The value-added figure is obtained against item 459 with proper sign and in whole number of rupees. In case of negative entry, further queries may be made and appropriate codes may be provided in block 12.


Block 5: other receipts/expenditures during the reference period: all non-financial enterprises

Item 501-544 would correspond to other expenditure/receipts and appropriations where 'other expenditure/receipts` are expenses and receipts not related to entrepreneurial activities. None of the items described through items 301 to 365 of blocks 3 and 3.1 will find a place in any of the items 501 to 514 of this block. Similarly, none of the items described through items 401 to 448 will find a place among items 531 to 544 of this block. The reverse is also true, i.e., during enquiry on receipts and operating expenses of an enterprise, expenses described through items 501 to 514 will not be recorded in any of the items 301 to 365 and receipts described through items 531 to 544 will not find place in any of the items 401 to 448.

It may be noted that different enterprises maintain their books of accounts in different fashion and uniform practice is not followed throughout the country. However, the item descriptions have been made so that it fits descriptions written in different types of books of accounts to the extent possible. All of the items 511 to 514 of block 5 cannot strictly be called 'expenditure'. Items 511 to 514 appear in many profit and loss accounts as items under appropriation of gross profit before depreciation and taxation.


Blocks 3 to 5:- Data on receipts and expenditure of all non-financial enterprises will be collected using these blocks. Items 301 to 395 of blocks 3 and 3.1 and item 502 of block 5 are for collecting data on various items of intermediate consumption of an enterprise. Items 401 to 487 of blocks 4 and 4.1 will record the receipts due to entrepreneurial activities. Block 5 will be used to record other items of expenses and receipts of these enterprises. Care may be taken so that there is no omission or duplication of entries on expenses between blocks 3, 3.1 and items 501 to 514 of block 5. Similarly, omission or duplication of recording receipts may be avoided between blocks 4, 4.1 and items 531 to 544 of block 5. If the value of the receipts in block 4 is collected at ex-factory price, then distributive expenses will not be recorded in item 453. Gross value added using product approach will be computed using block 4.2. In normal situations, gross value added is found as positive. However, if the gross value added arrived at is negative, remarks as per specified codes, and additional remarks, whenever necessary, must be provided in blocks 12 and 13.


Block 6: Gross Value Added during the reference period: all financial enterprises (NIC 2004 codes 659 and money lending from own source (65925), Self-Help Group (65994), co-operative credit societies (65995))

Block 6 will not be filled-in for non-financial enterprises (and Blocks 3 to 5 will not be filled-in for financial enterprises).

It may be noted that method of computing gross value added for the enterprises engaged in financial intermediation is different from that of the non-financial enterprises. Hence, the items of receipts and expenses used for computing gross value added for the financial enterprise should not be equated with those of the non-financial enterprises. For all the financial enterprises only this block will be used to compute the gross value added. Reference period, thus for this block will be reference year if data is recorded from books of accounts, but will be reference month when data is collected orally.

It may be noted that monetary intermediation (NIC 2004 code 651) is outside the coverage of the survey. This activity mostly means banks. For operational convenience, a bank may be defined as a financial enterprise, which can issue chequebooks, demand drafts, banker's cheques, etc. to its depositors. Presently many of the banks are also engaged in activities other than banking, like security trading, home loans, insurance, etc. If such an enterprise is selected for survey, it may first be ascertained whether the major income of the enterprise during the reference period was from banking or other activities. Depending upon major income, if the activity of the enterprise is found to under NIC 3-digit code 651, it will be considered as a 'casualty' in case of list-frame or will be substituted in case of area-frame. If there is no additional enterprise available in the area frame for substitution, this will be treated as casualty.

Separate codes have been provided for three financial activities, viz. money lending from own source (65925), Self-Help Groups (65994) and co-operative credit societies (65995). This will help to identify them at later stage. It may be noted that pawn shops (i.e., enterprises those keep some object on mortgage before giving loans) are under NIC 2004 code 65929. Some moneylenders may also keep goods from households on mortgage before giving loans to households. As long as money lending activity is done using own money, irrespective of whether the enterprise lending money keeps some articles on mortgage or not, it will be given NIC code 65925 (and not 65929). However, all registered pawnshops will be given NIC code 65929.

Blocks 7 and 8: The employment and emolument related particulars of the enterprise would be recorded here.

Block 7: Employment particulars of the enterprise during the reference period
Item 701 has to be filed up only for list-frame companies. Item 702 to 716 have to be filled up for the entire company in case of list frame enterprise. For area-frame enterprise, entry should be corresponding to the enterprise under survey.

Block 7.1: Branch-wise details on workers and income of companies appearing in the list-frame:

This block has to be filled up only for list frame enterprises depending on entry in item 701. If the company has branch i.e. entry in item 701 is '1', this block has to be filled-up. Here, 'branch' means each of the location of the company, be it head office/registered office/sales outlet/service centre, etc. For each branch, information regarding address, total number of employees, income has to be entered in separate rows of this block. If all the rows are exhausted, a new sheet (photocopy of 15th page of schedule 2.345) has to be attached for filling up entire information. The description of the columns of the block is as follows-

Col 1: Serial number of the branch
Col 2: Name and address of the branch
Col3: State code has to be entered according to the location of the enterprise. State codes are given below block 6.1. In case the branch is located outside India code '40' has to be given.
Col 4: This column will give whether the branch is in rural area (code 1) or urban area (code 2).
Col 5: This column would have the number of worker corresponding to the branch/head office of the enterprise.
Col 6: Total receipt or total income of the branch, whichever available, will be recorded here. If total receipt is recorded, the word 'income' at the heading should be struck offban areas (code 2). It is clear that data for the same variable, whichever available for all the branches will have to be recorded here.

Total of the entries in column 5 of block 7.1 should be equal to entry in item 719.

Blocks 7 to 10 will be canvassed to all the surveyed enterprises, financial or non-financial. Block 7.1 is applicable only for list frame companies. Moreover, for the list frame companies, data in blocks 3 to 5 and 7 to 10 (for non-financial companies) / 6 to 10 (for financial companies) will be for the entire company considering all its branches, head offices, registered offices, etc.


Block 8: Compensation to workers during the reference period

Reference period used for this block will be the same as the one used for block 3/6 as the case may be. All the goods and services received by the employees which are not essential for carrying out their jobs in the enterprise or which can be used by them while not on duty will appear in block 8.k, transportation to and from work, etc.bove.or others whil

Block 9: Assets of the enterprise

Reference period for recording data in different columns of items 901 to 919 are:
column 3: Value of assets owned as on first day of the reference year - First date of reference year (to be recorded only for enterprises providing data from its books of accounts)
column 4: Value of assets owned as on firs day of the reference year - Last date of reference year
columns 5 and 6: Additions and deductions to owned fixed assets - Reference Year
Column 7: rent payable on hired assets - Same as block 3/6
For items 921 to 923, reference period will be entire reference year.

In some balance sheets, assets are also written as 'application of funds'. Hence, while recording from books of accounts, data in block 9 will be recorded from that part of balance sheet that shows the 'assets' or 'application of funds'. It may be noted that the assets are assets of the enterprise. Hence, if owner of a proprietary enterprise has made some investments (like NSC, PPF, etc.) in her/his personal capacity, these will not be considered here.

Fixed assets: Fixed assets are assets held for the purpose of producing or providing goods or services and they are not held for resale in the normal course of entrepreneurial activities. These cover all old and new goods that have a normal economic life of more than one year from the date of purchase. Information regarding fixed assets is to be recorded by physical approach, i.e., all fixed assets available in the premises of the enterprise will be considered here. If books of accounts are available, values of assets (as on first and last date of the reference year) may be recorded as per the values available in the books. Otherwise, 'market value', i.e., value that the asset will fetch if sold at present (as on last date of the reference year) condition will be recorded.

Fixed assets will include: -
1) assets used for production, transportation, living or other facilities (recreation etc.). Full value of assets taken on hire purchase/ instalment (whether fully paid or not) excluding interest should be considered.
2) assets under construction, i.e. construction of building etc., installation of plant and machinery, preparation of chassis of truck, etc. (transport equipment) may be reported under the relevant items.
3) additions to fixed assets (as distinct from minor repair work) during the reference year are to be included.

Fixed assets will not include: -
1) intangible assets like goodwill etc.
2) advance payment for fixed assets not yet received.
3) fixed assets owned but rented out.

Block 10: Financial liabilities

Amounts payable by the enterprise are its liabilities. Liabilities include capital deployed by the partners of an enterprise, share capital, reserve and surplus amount noted in the balance sheet, long term loans as well as all the short term commitments for payments like unpaid wages, etc. The reference period for amount of loan outstanding will be the last date of the reference year, while for interest/dividend payable, reference period will be the same as one used in blocks 3/6 as the case may be. All entries in this block will be made in whole number of rupees.

In balance sheet of enterprises, the term 'liabilities' and 'sources of funds' are used interchangeably. Hence, while recording data from the balance sheet, entries in block 10 will be recorded only from 'liabilities' or 'sources of funds' side of the balance sheet.
The following points may be noted for inclusion/exclusion of an item in this block through oral enquiry:

Included are:
- loans taken for the purpose of utilising the same in the entrepreneurial activities of an enterprise will be included even if such loans are used for other purposes.
- Loans contracted by the enterprise either by cash or kind or both from other agencies.
- In case of hire purchase also, loan outstanding on the date of survey, including interest will be considered in block 9 against the corresponding serial number.

Excluded are:
- loans taken for other purposes but ultimately used in the enterprise,

Items 1001 to 1003 are to note the share capital of the enterprises. These items are not applicable for proprietary enterprises. Item 1001 is applicable only for the partnership enterprises. Items 1002 and 1003 are applicable for the co-operative societies, SHG's and companies.

Applicable for all list frame companies with branches

Some instructions to interviewers related to the LIST FRAME COMPANIES:
1. In the list frame, name and address of a little more than 1000 companies will be provided. These companies (or any of its branches) will not be covered in the area frame survey.
2. Since the major source of address of list frame company is from Ministry of Company Affairs, it is possible that the company's registered office is available in the frame-address, while the head office/ corporate office (where books of accounts and data on workers, etc. is actually available) is at another place. In such case, data for the list frame company will be collected from the head office/ corporate office.
3. The data for list frame companies will be for the entire company covering all its branches together. Branch-wise data on workers and income will be recorded in block 7.1 for list frame companies only. Data on column 4 of block 7.1 is to be recorded completely.

For all the list frame companies, try to record data from the books of accounts and attach a copy of the same with the schedule.