Page 225 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

(f) Annual Reports including Director’s Report to find out relevant
information, if any, mentioned therein like installed capacities, various
segments and their separate profitability, business challenges, related
parties and details of transactions with them including pricing policy,
comments of the Auditor on arm’s length pricing etc.

(g) Peruse the Auditor’s Report to understand qualifications, if any, by
the Auditors. If there are certain qualifications, the estimated impact
on the findings must also be noted

(h) Check details of related party entities and the comments of Statutory
Auditors must also be examined to ensure reasonability of costs and
net sales realizations.
(i) Check and prepare a comparative chart of cost sheets for all the
entities to find out the outliers, which may need special attention
during verification.
(j) Identify those products or models with the highest and lowest
consumption of inputs or costs which generated the highest and
lowest margins and try to identify any inputs or cost elements causing
these results for special attention during verification.
(k) Team members should sort the data, for example, by the customers,
groups of customers, customer categories, quantity and value,
rebates, discounts, channels of distribution, and commissions. Team
members should also sum up the totals for all quantifiable data fields
and break it out by reported variables within that field. These totals
may be useful in determining the significance of certain variables or
for checking allocations.
(l) If the respondent has been verified previously and the verification
reports from earlier verifications are available, then team members
should examine them to understand the DI as well as the producer
exporter.
(m) Deficiencies, if any, should be intimated before verification. Rejection
of response at the last moment for minor deficiency should be
avoided. If no satisfactory clarification is received within a reasonable
period, the investigation may be proceeded further based on available
facts.

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