Page 279 - Manual Of SOP

Manual of OP for Trade Remedy Investigations

Sometimes, the same asset is used for the production of more than one
products. The NFA is then allocated to different products on the production
value or any other appropriate basis.

(d) The inventory of by-product, if any, must be examined and impact on cost/
working capital may also be analyzed.

9.6.19. Format L (Calculation of claimed NIP): Format L indicates the NIP claimed
by the petitioner. Since NIP is required to be computed plant wise, value of each
major head of expenses given in this format should match with the figure given
in Format-C for PUC for the respective plant. This statement also gives optimum
production which is obtained by multiplying the maximum capacity utilization
percentage during POI and injury period with the installed capacity during the POI.

METHODOLOGY OF COMPUTATION

9.6.20. The team is required to determine NIP after due verification of the
information submitted by the DI. The following must be taken into consideration
while arriving at computation:

(a) It must be ensured that all information has been furnished in the prescribed
formats duly signed or certified, wherever certified;

(b) The NIP workings should be based on Audited / Certified Balance Sheet &
Profit & Loss Account statement;
(c) In case the POI is not the same as a financial year, then Profit & Loss Account
statement/NFA/Working Capital details etc. should be duly authenticated
by an independent Chartered Accountant. The Chartered Accountant
must certify that the figures relate to the company/unit for the POI as per
the books maintained by the Company as per the applicable Accounting
Standards;
(d) The Propriety of all expenses charged to the cost of production to be
examined to disallow all extraordinary or non-recurring expenses or prior
period costs;
(e) The NIP has to be worked out separately for each of the constituents of the DI
and a weighted average is then determined for the DI as a whole. Similarly,
weighted average is also worked out in case of entities having multiple
manufacturing facilities/units, where unit wise NIP is first determined and

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