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
| 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 |
Solution and Explanation
To calculate NVAFC, we use the formula:
NVAFC = 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
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