Page 277 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

be insisted before initiation of any case and in no case should the final
finding be issued without considering the approval granted by the Pollution
Control Board.

(c) The Format also requires, to the extent available with the DI, the submission
of available average industry norms for capacity utilization, average industry
norms for productivity per day and average industry norms for inventory.
These norms will help in understanding the efficiency of the company vis-a-
vis industry norms. Inventory should be mentioned in terms of the number
of days’ production and number of days’ sale. All these would form the
basis for injury analysis based on the duly audited/certified information
furnished by DI. Similar information is sought from the producer exporters
in their Questionnaire format.

(d) In Format-H, the cost of sales, profits, etc. for domestic sales should be
based on actual audited/certified costs of DI during POI without any
optimization. Therefore, total costs must match with the audited/ certified
records. However, selling price per unit of domestic sales should match
with net sales realization excluding excise duty/GST, commission, rebates,
discounts and all other direct expenses as given in Format-E.
9.6.16. Format-I (PCN wise summarized statement of expenses): This
information is furnished with respect to POI only. It furnishes PCN wise production
quantity, sales quantity, total raw material cost, the total cost of utilities, total direct
labor cost, other expenses,and total cost.

9.6.17. Format-J (Related Party Transactions): Format-J indicates the details
of related party transactions for production and sale of PUC or any of its inputs.
The particulars in Format-J are Particulars (Nature of Transaction), Unit, Quantity,
Rate per unit, Total Transfer Price, Basis of Pricing, Cost per Unit and whether the
transaction is at Arm’s Length Price. If transaction is not at Arm’s Length Price or
Comparable Arm’s Length Price (for details refer Format-A above), it shall be the
duty of Investigation Team to ensure that NIP is worked out at arm’s length prices
to ensure that NIP worked out is reasonable and not vitiated on account of related
party transactions. Details may also be seen in Chapter 19 related to General Issues.
It may be clarified that the related party transactions of both types; namely purchase
and sale are to be reflected in this format. Sales of by-products, scrap, PUC etc. may
also be relevant for the investigations.

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