112 intervals. Operative there are skilled and non – skilled. This includes machine operators, manufacturing clerks, production management staff, etc.
11.2.17 Operatives- Skilled
Operative-skilled are persons with specialized skills, for example; persons engaged in
fabricating, processing or assembling, fitters, packers, repairmen, record-keeping
personnel, foremen and inspectors.
11.2.18 Operatives, non-skilled
Workers in this group are non-specialized skill performing routine tasks, either
manually or using hand tools and appliances. The group includes such occupations as,
cleaners, foremen and casual labourers, etc.
11.2.19 Other Employees This includes all paid-up workers of the establishment other than operatives. They include all personnel in production management above the working foremen. These are administrative, as well as salaried managers/directors, laboratory and research workers, clerks, typists, bookkeepers, administrative supervisors, salesmen and the like.
11.2.20 Working Proprietors These are owners of the establishment who are actively engaged in the work of the establishment. It excludes silent or inactive partners as well as members of a proprietor’s family. The owners are considered to be active only if they work one third or more of the reference period. This category is not applicable to incorporated or similar enterprises where ownership is represented by equity shares. All working cooperative members are regarded as employees.
11.2.21 Unpaid Workers These are all persons working in the establishment without regular pay that is, without an agreed amount to be paid for work done. They include members of religious institutions, prisoners, servicemen and militia members and persons living in the household of any of the proprietors i.e. owners of the enterprise and working in the establishment without regular pay. All these persons however should have worked for the establishment for at least one third of the working time normal to the establishment. This category does not apply to any incorporated or similar enterprise where ownership is represented by equity shares.
113 11.2.22 Total Persons Engaged This is the total labour force and is the sum of all those persons working with or without pay, full or part-time, temporary or permanent.
11.2.23 Labour Costs
Refers to gross wages/salary, overtime payments, reimbursement of travel expenses,
payments in kinds, employer’s contributions to social security schemes, training
expenses to employees and other labour costs related to employees.
11.2.24 Leased workers
Refers to workers provided through an outside agency (employment agencies, sub-
contractors, etc.) on a short-term or long-term basis, who are not on the payroll of the
company but on that of the agency providing the staff.
11.2.25 Gross Wages It includes all payments, in cash to operatives in connection with work done. It includes all cash payments made for bonuses, commissions, overtime, cost-of-living allowances and payments made during periods of vacation, sick leave, maternity or casual leave. It includes taxes and social security contributions and the like paid by the employee but deducted by the employer. Lay-off payments and compensation for unemployment are included if made by the employer. Social insurance and pension contributions and the like payable by the employer are excluded but treated as a separate part of compensation to employees.
11.2.26 Gross Salaries These refer to cash payments paid to other employees in connection with work done. This term includes bonuses, commissions, overtime, vacation pay, sick leave, maternity and casual leave payments.
11.2.27 Benefits in Kind These are payments made, in kind other than cash to employees. It is the net cost to the employer of those goods and services (which are clearly and primarily of benefit to the employees as consumers) furnished to employees free of charge or at markedly reduced cost. They include food, beverages, tobacco, housing, clothing (not uniforms) and medical expenses. Excluded are costs relating to recreational facilities.
114 11.2.28 Social Security Schemes These are the employers’ contribution to the social security schemes and pension funds e.g. the National Social Security Fund (NSSF), Public Services Social Security Fund (PSSSF), Workers Compensation Fund (WCF) and other funds of this nature organized by the establishment concerned.
11.2.29 Output This is the final product produced by the alternative combinations of input in an establishment.
11.2.30 Principal Products These are goods made by the establishment during the reference year for which the quantities are given in standard units e.g. kilogrammes, square metres, litres etc. The goods are valued at ex-factory prices i.e. sales price less indirect taxes. Goods made for the establishment by other establishments from materials supplied by the establishment are also considered to be part of the establishment’s products.
11.2.31 Receipts for Industrial Services Rendered This is the amount charged for work done for others or for services of an industrial nature rendered to others: For example, contract or commission work done for other establishments on their material or repair and maintenance work on machinery and equipment. The value reported should be the total cost charged for the work or service performed.
11.2.32 Receipts for Non-Industrial Services This is the amount charged for services of non-industrial nature rendered to others. These are services such as management, research and development, data processing, legal fees, accountancy and the like.
11.2.33 Sales of Goods as Purchased This is the sales value, ex-establishment, of all goods that are sold without any transformation i.e, in the same condition as purchased. These goods are not subjected to any further manufacturing process and are normally known as trade goods.
11.2.34 Fixed Assets (or Capital Goods) Produced for Own Account Refer to assets that a company manufactures for its own use rather than for sale to external customers. These assets are typically produced by the company's own resources, such as labor, materials, and equipment, and are intended to be used
115 internally to support the company's operations. It includes value of installations, extensions and major repairs
11.2.35 Gross Output Gross output refers to the total sales value of all goods and services produced within an establishment during the reference period, typically measured annually or quarterly. It represents the total economic activity generated by that establishment, including both intermediate goods and final goods. The value of production at basic prices is calculated as follows
This is equal to the sum of the following:
§
Value of Principal Products
§
Value of sale of all goods and services purchased for resale in the same
condition as received
§
Receipts for Industrial Services Rendered
§
Receipts for Non-Industrial Services
§
Sales Value of Goods Shipped as Received
§
Value of Fixed Assets Produced for Own-account
§
Change in inventories
§
Deducting Purchases of goods and services for resale in the same condition as
received
11.2.36 Inputs These are factors of production used to produce a given level of output. Inputs can either be labour, capital, raw materials and land.
11.2.37 Increase in Work-in-progress This is the value of work-in-progress at the end of the year less the corresponding value at the beginning of the year. It refers to the value of all materials, which have partially been processed by the establishment, but which are not usually sold, shipped, or turned over to other establishments without further processing.
11.2.38 Raw Materials and Components This is the value of raw materials, components and parts that are physically incorporated in the products of the establishment. Also, included are all auxiliary materials such as lubricants, water, packaging materials, small tools, parts, materials
116 for repair and maintenance provided that working life is less than one year and office supplies.
11.2.39 Material for Own-Account Construction of Fixed Assets Refer to the resources or inputs that a company uses to build or construct fixed assets for its own use rather than for sale to external customers. E.g. buildings, machinery, installations, extensions, improvements and major repairs.
11.2.40 Value of Fuel and Lubricants This is the value of all fuels and lubricants consumed by the establishment in the production process.
11.2.41 Cost of Electricity Purchased This is the total cost of electricity purchased by the establishment during the reference year.
11.2.42 Transport Costs They include costs for own and hired transport.
11.2.43 Cost of Industrial Services Received These are the payments made by the establishment for contract and commission work done by others during the reference year on materials supplied and controlled by the establishment. It also covers the total cost to the establishment for repair and maintenance services on buildings and other fixed assets of the establishment provided by others during the reference year.
11.2.44 Cost of Non-Industrial Services Received This is the cost of all non-industrial services rendered by other establishments to the establishment. They involve activities pertaining to economic activities other than mining, manufacturing and production and distribution of electricity, gas and water.
11.2.45 Production Costs Includes all the costs that are involved in acquiring or making a product
11.3 Value Added
It is the measure of the additional value created by a process of Production in the economy for
the reference period.
117 11.3.1 Gross Value Added This represents the difference between Gross Output and Production Costs. (intermediate consumption). Gross value added is equal to gross output less the value of the intermediate consumption/production cost. The sum of the value added of all domestic producers gives the contribution to the Gross Domestic Product (GDP). Gross value added may be at factor cost, basic prices or at producers’ prices depending on the treatment of taxes on production and subsidies. Value added at basic prices is obtained as the difference between gross output and intermediate consumption whereby output is valued at basic prices and intermediate consumption at purchasers’ prices.
11.3.2 Net Value Added It is the difference between Gross Value Added and Depreciation.
11.3.3 Value of Stocks or Inventory
It is the total opening and total closing Balance Values of the following items:
§ Materials, Fuels and Stores
§ Work-in-Progress
§ Finished Goods Produced.
11.3.4 Value of Materials, Fuel and Stores It is the value of materials, fuel and stores in stock at the beginning and end of the reference year.
11.3.5 Work-in-Progress Refers to semi-finished products. It includes goods that have partially been processed but not ready for shipment. Work-in-progress on own-account construction of fixed assets should be excluded and treated as part of the fixed capital formation.
11.3.6 Finished Goods Produced Refers to all goods made by an establishment which are ready for sale or shipment as of the reference dates. Included, are finished goods processed and held by other establishments from raw materials supplied and controlled by the respondent establishment. Excluded are finished goods held by the respondent establishment but made from materials owned and supplied by other establishments.
11.4 Fixed Assets
Refers to assets used repeatedly, or continuously, in processes of production for more than one
year. They consist of both tangible fixed assets (dwellings, other buildings and structures,
machinery and equipment cultivated assets) and intangible fixed assets (mineral exploration,
118 computer software and other intangible fixed assets). Inventories and valuables that are not used repeatedly in production are not counted as fixed assets. Neither do natural assets that are not produced.
11.5 Machinery and Other Equipment Refer to the tools, instruments, machines, and other physical assets used in various industrial, manufacturing, commercial, or service-related activities. This item includes all industrial machinery and other equipment such as construction machinery, cranes, fork-lift equipment and the like; power generating machinery; computers and other data-processing equipment; metalworking machinery; mining machinery; office machinery, equipment and furniture; and similar machinery and equipment and major renovations and alterations to these.
11.5.1 Manual Machinery Refers to equipment or tools that are operated and controlled directly by human labor without automated or powered assistance.
11.5.2 Semi-Automatic Machinery Refers to equipment or machines that combine manual operation with some level of automation to perform tasks.
11.5.3 Automatic Machinery Refers to equipment or machines that operate without direct human intervention once they are set up and initiated.
11.5.4 Transport Equipment Includes trucks, cars, trailers, aircraft, animal carts and wagons. But only those connected with industrial activity.
11.6 Disposals Disposal means sale, retirement, exchange or transfer and other form of removal of fixed assets from company balance sheet Disposals to others should be valued ex-establishment excluding discounts and direct taxes but including subsidies received.
11.6.1 Depreciation It represents the estimated allowance for wear and tear of fixed assets during the reference year. It refers to annual and not cumulative depreciation.
11.6.2 Sales of Own Goods It represents the total sales or revenue by selling the products in a reference year from own productions, or otherwise own whether or not the goods sold were produced in the