Question

Calculate the value of Net Value Added at Factor Cost (NVAFC):

S. No.	Particulars	Amount (In ₹ crore)
(i)	Operating Surplus	3,740
(ii)	Increase in unsold stock	600
(iii)	Sales	10,625
(iv)	Purchase of raw materials	2,625
(v)	Consumption of fixed capital	500
(vi)	Subsidies	400
(vii)	Indirect taxes	1,200

Answer 1

To calculate NVA_FC, we use the formula:
NVA_FC = Sales + Change in stock - Raw materials - Depreciation + Subsidies - Indirect taxes

Substituting the values:

    = 10,625 + 600 - 2,625 - 500 + 400 - 1,200 = 7,300 crore    

Answer: ₹ 7,300 crore