Page 224 - MANUAL OF SOP

Verification

Preparation and planning for verification
(xxiii) The plan of verification, first entities to be verified and dates of the
verification should be scheduled in advance. The verification agenda should
be prepared and shared with the entities to be verified. Preparation for
verification should be done in advance for the actual verification of the
response data as discussed below:

Examination of application/questionnaire responses
(xxiv) Team members should examine the submissions in detail. The submissions
made therein should be understood with regard to:
(a) All the formats are being duly signed and complete information is
available. Name and designation of the concerned senior officer
must be mentioned, where documents are signed by the Company
Officials.

(b) The documents as per format should be certified by a practicing
accountant in the exporting country, where our required. It may
be added here that Indian Chartered Accountants may not be
competent to certify the statements from books of accounts of the
exporters, which have been prepared as per applicable statute and
accounting standards in that exporting country.
(c) Peruse the supporting documents evidencing installed capacity and
production etc. For example, installed capacity can be verified from
various returns filed with the respective Government Authorities.
It may be added here that certain polluting industries, especially
chemical industries, file a return with the Pollution Board regarding
installed capacity.
(d) The different segments, different plants and the various products
being manufactured by the company, including any joint products
or by-products.
(e) The details regarding captive consumption and the basis of its pricing.
This information is necessary during allocation of expenses between
PUC and Non-PUC. Even if the basis of captive transfer is market
price, the team should verify the duly authenticated cost sheet of
the captive inputs. The cost sheet would also help in ascertaining the
reasonability of market price.

201