Page 285 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

CALCULATION OF NET FIXED ASSETS
9.6.25. If the petitioner company is a single product company and involved in
manufacturing and selling of PUC only, the total net value of assets related to PUC
as per Audited/ Certified Balance Sheet is taken as Net Fixed Assets. However, if it
is a multi-product company and multi-activity company, the direct NFA allocated
to the PUC and the common NFA apportioned to PUC on a reasonable basis are
taken together as NFA for PUC. However, care needs to be taken that the assets
not related to PUC either directly or indirectly are excluded. The average of opening
and closing NFA so calculated is divided by optimum production to derive average
NFA per unit.

9.6.26. In case, the PUC is a finished product of some other intermediates
manufactured captively, and captive products are being transferred at cost, a
proportionates hare of NFA associated in the production of such intermediate
should also be added with the direct NFA of the PUC to arrive at total NFA for
return purpose.

WORKING CAPITAL
9.6.27. Working Capital is the sum total of current assets minus current liabilities
attributable to PUC. Current assets related to PUC are identified and taken into
consideration. Similarly, current liabilities are also identified for PUC and taken into
consideration. Current liabilities except for provisions, statutory liabilities like GST/
Excise Duty/VAT, dividend payable, income tax payable and other payables which
do not have a link with production and interest-bearing loans such as Cash Credit
loan are excluded. Current assets and Current Liabilities related to “Related Parties”
must be examined to ensure reasonability.

9.6.28. In case of multi-product Company, where assets can’t be identified with
any particular product, the total working capital of the company as a whole is
generally allocated to the PUC on the basis of domestic sales turnover of the PUC
as a percentage of total turnover of the company or any other reasonable basis.
Sometimes overall working capital as a percentage of the overall cost of production
is also applied to determine the working capital for PUC.

VALUATION/ PRICING OF CAPTIVE INPUTS
9.6.29. ‘Captive Consumption’ means the consumption of goods manufactured
by one division or unit of a company and consumed by same or another division

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