Page 354 - MANUAL OF SOP

Determination of Dumping Margin

especially when POI is different from the normal financial/ accounting year
of the company. Therefore, there may be no alternative but to ignore the
same based on assumptions that (i) quantity/amount involved may not be
high; or (ii) there may not be substantial difference between opening stock
and closing stock lying at production floor;

(ii) The total value of actual consumption of raw material and utilities for PUC
during POI and previous year should generally reconcile with the total
raw material/ utility consumption in Appendix-7/Appendix-8 for PUC. The
corresponding figures should reconcile with Appendix-5 also, in case, these
costs are separately shown in Appendix-5;

(iii) The actual year wise per unit consumption of raw materials/inputs during
POI be compared with the previous year. Any wide variation in figures must
be examined;
(iv) Purchase rates of related party procurements should be confirmed based
on arm’s length pricing. Detailed data (for determining price base) and
supporting documents should be collected along with rates of similar
products procured from non-related parties. The comments of the Statutory
Auditors and requirements of Accounting Standard should be seen from
the Audited Annual Accounts regarding the arm’s length pricing;

(v) Records of relevant related companies/parties may also be seen to confirm
that the purchase price of items purchased from such related parties during
POI and during the injury period is comparable to the corresponding sale
price charged by the said Related Parties from the non-related customers
during the said period. In the case of utilities, the sale price is generally
published and is reflected on the web site also. The comments of the
Statutory Auditors are to be seen from the Audited Annual Accounts
regarding the arm’s length pricing of the related party transactions, which
are furnished by the applicant in Appendix-11;

(vi) Similarly, if the inputs are captively produced as well as purchased from non-
related parties, the rates must be compared to arrive at the reasonability of
the prices charged for captive consumption;

(vii) Appendix-6 is also required to be verified from the source documents
maintained by the producer exporter. Some of the purchase invoices of
various raw materials/utilities are also required to be collected and compared

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