Page 36 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

It may be observed from the table that production per The evidence is that per employee performance
employee for Khadi Sector has gone up by 26.16% (i.e. of village industries is better on both the fronts, i.e.
from Rs.33,352/- in 2016-17 to Rs.42,080/- in 2020- production and sales, in comparison to khadi sector.
21); by 59.35% (i.e. from Rs.31,182/- in 2016-17 to However, the difference between the two sectors in per
Rs.49,690/- in 2020-21) for village industries; and the employee performance of sales is lower.
overall aggregate movement being 58.22% (i.e. from
Rs.31,254/- in 2016-17 to Rs.49,451/- in 2020-21). A fair assumption is that the excess of sales per
employee over production per employee reflects
Sales per employee for Khadi Sector has gone the ‘Net Value Addition (NVA) per Employee’.
up by 63.84% (i.e. from Rs.47,075/- in 2016-17 Accordingly, the NVA per employee of khadi and
to Rs.77,130/- in 2020-21); by 73.35% (i.e. from village industries over the years would work out to the
Rs.37,918/- in 2016-17 to Rs.65,732/- in 2020- fi gures as tabulated in table
21) for village industries; and the overall aggregate
being 72.90% (i.e. from Rs.38,224/- in 2016-17 to Table 6: NVA (in Rs.) per Employee of Khadi and
Rs.66,091/- in 2020-21). Village Industries

Serial Particulars 2016-17 2017-18 2018-19 2019-20 2020-21

1 Khadi Sector 13723 19001 25238 37969 35050

2 Village Industries 6736 7529 10498 13077 16042

3 Total 6970 7909 10995 13886 16640

Khadi sector was providing a net value addition 05.00 Bottom Line
of Rs.13,723/- per employee in 2016-17 as against The example of computation of ‘Production per
Rs.6,736/- by village industries and an average of Employee’, ‘Sales per Employee’ and ‘Net Value
Rs.6,970/-. The fi gures have gone up to Rs.35,050/- per Addition per Employee’ has been chosen to demonstrate
employee in 2020-21 for khadi sector, to Rs.16,042/- the CMA capabilities that can add visionary advantage
for village industries and to an average of Rs.16,640/- to micro enterprises. The tools and techniques of CMA
for both together. The output of khadi sector turns out fraternity could be many; but the objective is singular
to be better when the performance is analysed in terms – “Enabling a competitive edge by unveiling and
of net value addition per employee which refl ects the unleashing the untapped potential of the entrepreneurial
ground reality. resources”. MSMEs and CMAs could, therefore,
churn out to be a fantastic synergic combination for
The critical observation, in this context, is whether the economic prosperity.
a net value addition of Rs.16,640/- per annum is
suffi cient for the survival of any artisan or a worker? Resources:
The obvious need is towards augmentation of the NVA 1. Annual Report for 2020-21 of Ministry of
per employee to sustainable levels; and that is where MSME, Government of India
the skill set of a CMA would come handy.
2. Budget documents of Government of India.

36 The Institute of Cost Accountants of India