Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

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        LATEST NEWS UPDATES | &#039;Firms missing from database will not affect GDP calculation&#039; -TCA Sharad Raghavan    </title>
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-The Hindu



Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician

The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable,..."/>
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-The Hindu



Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician

The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable,..." />
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    <h1 class="cat-box-title">&#039;Firms missing from database will not affect GDP calculation&#039; -TCA Sharad Raghavan</h1>
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		 Published on</span><span class="text-date"> May 9, 2019</span>
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                            <div align="justify">-The Hindu</div><div align="justify"><br /><em>Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician<br /></em><br />The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable, out of coverage, or closed, will not have a major impact on the calculation of GDP and GVA, according to prominent statisticians closely associated with the subject.<br /><br />A recent report by the National Sample Survey Organisation titled &lsquo;Technical Report on Service Sector Enterprises in India&rsquo; found that nearly 38% of the companies it surveyed using the MCA-21 database were unusable for data collection purposes. About 21% were designated &ldquo;out of coverage&rdquo;, 12% as untraceable, and 4.5% as closed. The government has started using the MCA-21 database to calculate the Gross Domestic Product and the Gross Value Added. The deficiencies in the database have alarmed a section of economists, who pointed out that this weakens the integrity of the national accounts data. However, noted statisticians The Hindu spoke to said this was not the case.<br /><br />&ldquo;In the sample we took from the MCA-21 database, about 36% of the firms don&rsquo;t exist,&rdquo; Pronab Sen, former Chief Statistician of India said. &ldquo;That doesn&rsquo;t surprise me one bit. The reason is we know that the MCA-21 contains shell companies. But, when you have shell companies in the MCA-21, and they are submitting their balance sheets regularly, they are very much a part of what I am measuring.&rdquo;<br /><br />&ldquo;The question is whether this is wrong, and the answer is no,&rdquo; Mr. Sen added. &ldquo;Because, if I don&rsquo;t measure their output, I am not capturing a part of GDP. Shell companies are benami companies where you have a legitimate company doing a legitimate business, but for tax purposes is routing a lot of transactions through the shell company. The value creation is happening. If I ignore that, I am saying value creation is not happening, which is wrong.&rdquo;<br /><br />&ldquo;Not being able to reach a company at a particular address means that the address is wrong, not that the production is not happening,&rdquo; a senior government official associated with the Ministry of Statistics explained. Also, as growth rates are measured over a period of time, the major factor that would affect them is the regularity with which the companies being measured file their returns, the official added.<br /><br />Please <a href="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece" title="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece">click here</a> to read more. <br /></div>                                                           
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    <br><a href="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece" class="re" target="_blank">The Hindu, 8 May, 2019, https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece</a><div class="clear"></div>
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    <h1 class="cat-box-title">&#039;Firms missing from database will not affect GDP calculation&#039; -TCA Sharad Raghavan</h1>
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                            <div align="justify">-The Hindu</div><div align="justify"><br /><em>Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician<br /></em><br />The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable, out of coverage, or closed, will not have a major impact on the calculation of GDP and GVA, according to prominent statisticians closely associated with the subject.<br /><br />A recent report by the National Sample Survey Organisation titled &lsquo;Technical Report on Service Sector Enterprises in India&rsquo; found that nearly 38% of the companies it surveyed using the MCA-21 database were unusable for data collection purposes. About 21% were designated &ldquo;out of coverage&rdquo;, 12% as untraceable, and 4.5% as closed. The government has started using the MCA-21 database to calculate the Gross Domestic Product and the Gross Value Added. The deficiencies in the database have alarmed a section of economists, who pointed out that this weakens the integrity of the national accounts data. However, noted statisticians The Hindu spoke to said this was not the case.<br /><br />&ldquo;In the sample we took from the MCA-21 database, about 36% of the firms don&rsquo;t exist,&rdquo; Pronab Sen, former Chief Statistician of India said. &ldquo;That doesn&rsquo;t surprise me one bit. The reason is we know that the MCA-21 contains shell companies. But, when you have shell companies in the MCA-21, and they are submitting their balance sheets regularly, they are very much a part of what I am measuring.&rdquo;<br /><br />&ldquo;The question is whether this is wrong, and the answer is no,&rdquo; Mr. Sen added. &ldquo;Because, if I don&rsquo;t measure their output, I am not capturing a part of GDP. Shell companies are benami companies where you have a legitimate company doing a legitimate business, but for tax purposes is routing a lot of transactions through the shell company. The value creation is happening. If I ignore that, I am saying value creation is not happening, which is wrong.&rdquo;<br /><br />&ldquo;Not being able to reach a company at a particular address means that the address is wrong, not that the production is not happening,&rdquo; a senior government official associated with the Ministry of Statistics explained. Also, as growth rates are measured over a period of time, the major factor that would affect them is the regularity with which the companies being measured file their returns, the official added.<br /><br />Please <a href="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece" title="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece">click here</a> to read more. <br /></div>                                                           
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Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician

The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable,..." />
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    <h1 class="cat-box-title">&#039;Firms missing from database will not affect GDP calculation&#039; -TCA Sharad Raghavan</h1>
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                            <div align="justify">-The Hindu</div><div align="justify"><br /><em>Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician<br /></em><br />The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable, out of coverage, or closed, will not have a major impact on the calculation of GDP and GVA, according to prominent statisticians closely associated with the subject.<br /><br />A recent report by the National Sample Survey Organisation titled &lsquo;Technical Report on Service Sector Enterprises in India&rsquo; found that nearly 38% of the companies it surveyed using the MCA-21 database were unusable for data collection purposes. About 21% were designated &ldquo;out of coverage&rdquo;, 12% as untraceable, and 4.5% as closed. The government has started using the MCA-21 database to calculate the Gross Domestic Product and the Gross Value Added. The deficiencies in the database have alarmed a section of economists, who pointed out that this weakens the integrity of the national accounts data. However, noted statisticians The Hindu spoke to said this was not the case.<br /><br />&ldquo;In the sample we took from the MCA-21 database, about 36% of the firms don&rsquo;t exist,&rdquo; Pronab Sen, former Chief Statistician of India said. &ldquo;That doesn&rsquo;t surprise me one bit. The reason is we know that the MCA-21 contains shell companies. But, when you have shell companies in the MCA-21, and they are submitting their balance sheets regularly, they are very much a part of what I am measuring.&rdquo;<br /><br />&ldquo;The question is whether this is wrong, and the answer is no,&rdquo; Mr. Sen added. &ldquo;Because, if I don&rsquo;t measure their output, I am not capturing a part of GDP. Shell companies are benami companies where you have a legitimate company doing a legitimate business, but for tax purposes is routing a lot of transactions through the shell company. The value creation is happening. If I ignore that, I am saying value creation is not happening, which is wrong.&rdquo;<br /><br />&ldquo;Not being able to reach a company at a particular address means that the address is wrong, not that the production is not happening,&rdquo; a senior government official associated with the Ministry of Statistics explained. Also, as growth rates are measured over a period of time, the major factor that would affect them is the regularity with which the companies being measured file their returns, the official added.<br /><br />Please <a href="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece" title="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece">click here</a> to read more. <br /></div>                                                           
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    <br><a href="https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece" class="re" target="_blank">The Hindu, 8 May, 2019, https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece</a><div class="clear"></div>
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'Firms missing from database will not affect GDP calculation' -TCA Sharad Raghavan

Published on May 9, 2019   Modified on May 9, 2019

-The Hindu Shell companies in MCA-21 submitting balance sheets regularly very much part of measurement, says former chief statistician The deficiencies found in the MCA-21 database of the corporate sector, where more than a third of the sample companies were either untraceable, out of coverage, or closed, will not have a major impact on the calculation of GDP and GVA, according to prominent statisticians closely associated with the subject. A recent report by the National Sample Survey Organisation titled ‘Technical Report on Service Sector Enterprises in India’ found that nearly 38% of the companies it surveyed using the MCA-21 database were unusable for data collection purposes. About 21% were designated “out of coverage”, 12% as untraceable, and 4.5% as closed. The government has started using the MCA-21 database to calculate the Gross Domestic Product and the Gross Value Added. The deficiencies in the database have alarmed a section of economists, who pointed out that this weakens the integrity of the national accounts data. However, noted statisticians The Hindu spoke to said this was not the case. “In the sample we took from the MCA-21 database, about 36% of the firms don’t exist,” Pronab Sen, former Chief Statistician of India said. “That doesn’t surprise me one bit. The reason is we know that the MCA-21 contains shell companies. But, when you have shell companies in the MCA-21, and they are submitting their balance sheets regularly, they are very much a part of what I am measuring.” “The question is whether this is wrong, and the answer is no,” Mr. Sen added. “Because, if I don’t measure their output, I am not capturing a part of GDP. Shell companies are benami companies where you have a legitimate company doing a legitimate business, but for tax purposes is routing a lot of transactions through the shell company. The value creation is happening. If I ignore that, I am saying value creation is not happening, which is wrong.” “Not being able to reach a company at a particular address means that the address is wrong, not that the production is not happening,” a senior government official associated with the Ministry of Statistics explained. Also, as growth rates are measured over a period of time, the major factor that would affect them is the regularity with which the companies being measured file their returns, the official added. Please click here to read more.

The Hindu, 8 May, 2019, https://www.thehindu.com/business/Economy/mca-21-missing-companies-will-not-affect-gva-growth-calculation/article27071211.ece

Tagged with: Industrial GVA Industrial Output GVA estimation MCA-21 MCA-21 database Ministry of Corporate Affairs

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