Page 273 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

such a case with scope for monthly/quarterly NIP. This may indicate more
accurate injury margins.
9.6.9. Format-B (Statement of Raw Material Consumption): It reflects the
actual year wise per unit consumption of raw materials/inputs. It seeks to compare
consumption per unit of production during the various years of injury period.
Anywide variation in year to year figures must be examined. The year-wise per unit
consumption of inputs is taken from Format A and multiplied by average rates (net
of input tax, credit, GST, etc.) of respective inputs as prevailing during POI. The
year wise normative costs so obtained are compared to find out the most efficient
consumption of raw materials (optimum consumption) during the Injury period and
POI. It may be clarified that optimization for raw materials (Format B) is to be done
for each plant producing the PUC.

9.6.10. Format-C (Allocation and Apportionment of expenses): It is one of
the most critical formats for costing as it captures the details regarding allocation
and apportionment of expenses. There is one format for one PUC for the entire
company in any investigation. Different units are reflected by way of creating
multiple columns in the same format. In other words, if a company has three units
manufacturing the PUC, separate column shall be created in this Format for each
such entity. This facilitates separate NIP for each of the units based on its own
efficiency and performance. The expense heads are indicative and can be changed/
modified based on the uniqueness of any investigations. The General Ledger Codes
are aimed to facilitate during the verification. It shows various elements of expense
and income of the company grouped under major heads of accounts allocated to
PUC (plant wise), common utilities, captive inputs,and Non-PUC on appropriate
basis consistently followed by the company as per generally accepted accounting
practices/accounting standards. It may be added that separate columns need to be
added for each major utility and captively consumed product to ensure verification
and availability of complete details. The following are the major points to be seen:

(a) The revenue and expenditure of the company as a whole as per audited
accounts/certified records is reconciled with the fourth column of the format
i.e., expenses for the company as a whole. The expenses are then allocated/
apportioned to various plants producing PUC, common utilities and non-
PUC etc. There will preferably be a separate column for each major common
utility. Major captive inputs/utilities should have separate columns to help
verification of their costs. These common utilities and captive consumptions

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