Page 317 - MANUAL OF SOP

Injury Analysis

there is bound to be a decline in the returns on the capital employed. This increase in
the capital employed should be looked into and reasons thereof should be factored
int he evaluation. If there is an increase in the depreciation without corresponding
increase in fixed assets, an explanation should be sought from the DI.

11.7.37. The profits (PBIT) should be evaluated both as a percentage of capital
employed as well as a percentage of sales. The reason for variation during the
injury period must be looked into. Interest payments made by domestic producers
should also be carefully examined especially the interest payments to the related
parties. Further, the reasons for the increase in total capital employed should
also be examined as new investments could also be contributing to the reduction
in profits or losses, for example, acquisition of new assets/ merger of new units/
amalgamation of new units in the DI.

11.7.38. It is important that the evaluation of injury must be based on examination
of all factors, as no single factor can be considered as decisive. For example, a mere
increase in imports or loss of market share by the DI alone cannot be decisive.
Loss of market share should be considered with a range of all other relevant injury
indicators before material injury may be established.

11.7.39. Performance parameters of DI for the PUC are to be considered from
Format H which provides most of the aforesaid details duly audited (and verified
during verification) regarding all the above parameters.

Particulars Unit Year 1 Year 2 Year 3 POI

Installed Capacity
Production Quantity*
Capacity Utilization Percentage

Average Industry Norm for Capacity
Utilisation, if any
Sales Quantity:
Domestic Sales- Small Scale Industry** (SSI)
Domestic Sales – Other than SSI
Export Sales
Captive Consumption

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