Let us consider this:
1. As per the Income Tax Act, every employer is supposed to maintain full and complete records for their employees' pay, salary, how that salary and pay are calculated, and finally paid, and whether proper tax is deducted. So, for making calculations of pay, salary with giving benefits or leaves, government holidays, and overtime pays, it is necessary to know that a person has worked in the office under the employer for a specific number of days. Therefore, the company has to maintain a record of proper working and the number of days a person worked. It is clear that attendance records for even top bosses, CEOs, and C&MDs are required.
2. As per the Insurance Act, if any untoward incident happens, then for assessing the claim, it will be the responsibility of the person who suffered to prove that he was at the workplace (office or factory). For this, he has to show a record from the attendance register that he came to the office and was, in fact, there. In one case, an employee was coming by car, and a tree fell on his car while he was parking it in the parking lot and got injured. The court said that since he had not begun working at the office because he did not sign the muster at the beginning of work in the office, it cannot be said that he got injured in the office, and the claim was not paid. So, again, proper attendance records are very important.