ABSTRACT The Census of Manufacturing Establishments (CME) 1996/97 is the seventh in the series of CMEs carried out in Nepal since 1964/65. The primary objective of CME is to provide updated data on the composition, growth and volume of manufacturing sector. The census is conducted in “Establishment Approach”. The reference period is considered as the fiscal year 1996/97. There were 3557 establishments found operated throughout the country engaging 10 or more persons irrespective of using power machines. Such establishments are called modern manufacturing establishments. Gross value added (GVA) contribution of modern manufacturing sector is Rs. 21,875,315 at current prices. Following the international practices, the establishments surveyed are classified according to the Nepal Standard Industrial Classification (NSIC) at 4 digit level and designed results accordingly. There are altogether 19 tables presented in the CME final report at national level including employment and earning, fuel, raw material, value of shipment, industrial services and non-industrial services, indirect tax, stocks, capacity utilization, fixed assets. 10 indicators including number of establishments, number of persons engaged, number of employees, wages and salaries, change in stocks at the end of the year, gross addition to fixed assets, gross fixed assets at the end of the year, census input, census output and census value added are defined as principal indicators. The principal indicator tables of Nepal and Urban/Rural are prepared by legal status, ownership, number of persons engaged and size of fixed assets and by NSIC at 4 digit levels in the National Report. But the principal indicator by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit level are also kept in the District Level report. SCOPE The scope of the CME 1996/97 includes all manufacturing establishments of major division 'D' of International Standard Industrial Classification. In general, manufacturing establishments are classified on the basis of the principal type of products produced. There are 23 Divisions, 53 Groups and 117 Classes of Major Division “D”, that is, "Manufacturing and Recycling" in the NSIC. The distribution of the NSIC by Major Division, Division, Group and Classes is provided in the document "NSIC SHORT.pdf" With respect to subjects concerned, CME provides following information as included in the questionnaire: - total number of manufacturing Establishments engaged 10 or more persons - legal status, ownership and major manufacturing activity of the establishments; - Employment (no. of employees by sex and citizenship and their emoluments); - the quantity and value of production, purchase and sale of fuel; - the quantity and value of raw material purchased by CPC and country - the quantity and value of production and sale of product by CPC and country; - the opening and closing stock amount of fuel, raw materials, finished goods, semi - finished goods - the income from and expenditure of industrial services - the income from and expenditure of non-industrial services - the amount of indirect taxes paid; for example: excise duty, import duty, export duty etc - capital formation and fixed assets; and - capacity utilizations COVERAGE Geographic Coverage National, Regional and all 75 Districts of Nepal Universe All operational manufacturing establishments during the fiscal year B.S. 2053-54 (Mid July of 1996 to Mid July of 1997) engaging 10 or more persons.