Against the backdrop of considerations over knowledge used for calculating GDP numbers, Corporate Affairs Secretary Injeti Srinivas asserted that the ministry’s MCA 21 portal is a “trust-based system” as the data reported there are firm disclosures.
A report by the National Sample Survey Office (NSSO) on the providers sector discovered that almost 36 p.c of corporations within the MCA 21 system that had been utilized in computing GDP had been both not traceable or not categorised correctly.
MCA 21 is an digital repository of company filings.
“The information reported on MCA 21 are company disclosures and companies have to validate it. It is a trust-based system. We have been alive to this problem of data reliability and have been continuously taking steps for making it highly reliable,” Srinivas advised PTI.
Filings beneath the Companies Act are submitted to the company affairs ministry via the MCA 21 system.
As far because the ministry is worried, Srinivas mentioned MCA 21 is a “fairly reliable database and certainly not a black box. It is a highly transparent platform and one of the best in the world”.
He additionally mentioned that what knowledge is consultant for GDP calculation and what must be used, is a matter that needs to be determined by statistical authorities involved.
There had been round 15 lakh lively corporations included on the MCA 21 and the quantity has come all the way down to 11.5 lakh within the final two years after the names of round 3.5 lakh corporations had been struck off because of non-filing of statutory returns for 2 years or extra.
Noting that the drive in opposition to corporations that aren’t making required filings is a steady course of, Srinivas mentioned the ministry initiated Know Your Client (KYC) course of for corporations about two months in the past.
“With the KYC process, the details about companies, including the company’s registered address and geographical information (latitude and longitude details), directors, KMPs (Key Managerial Persons)… are getting revalidated. Around 5 lakh companies have so far complied with the KYC process,” he mentioned.
Under the annual KYC course of for administrators launched final 12 months, round 17 lakh administrators validated their knowledge. However, an equal variety of such individuals failed to take action and their DINs (Director Identification Numbers) have been deactivated by the ministry.
According to the company affairs secretary, extreme restrictions are being imposed on KYC non-compliant corporations.
“These include barring them from changing their registered address, revising authorised capital, inducting or removing directors and restraining them from carrying out merger and acquisition. Besides, banks are also cautioned that they should be careful in extending credit to non-compliant companies,” he famous.
On Wednesday, the Ministry of Statistics and Programme Implementation mentioned an official committee would study the technical report on providers sector enterprises.
“The recent exercise of the National Sample Survey to bring out a technical report on the services sector was commissioned by the ministry to understand the data gaps and take remedial steps while undertaking the new base revision exercise for the proposed 2017-18 series,” the ministry had mentioned in an announcement.
The ministry had additionally famous that there is no such thing as a impression on the present GDP/GVA estimates for the company sector as due care is taken to appropriately modify the company filings on the mixture degree based mostly on the paid-up capital.
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