PRICE VARIATION CALCULATION (SAMPLE)

Item
Quantity (Nos.)
Contractual delivery
Original invoice No.
Actual shipment date
Base indices date

:
:
:
:
:
:

Total no. of days

No of days 2 months prior to despatch
Corresponding month (60 days prior to despatch)

:
:
:

220/33kV or 220/11kV, Power Transformer

1
31-Mar-08
622440315
31-Mar-08
17-May-07
For Actual Delivery
319
259
Jan-08

Base Indices

Indices based on Actual delivery

Copper wire bars (C)

A0

333,023

May-07

A1

298,979

Jan-08

CRGO prices (ES)

B0

202,243

May-07

B1

238,209

Jan-08

Price Indices of Iron & steel (IS)

C0

267.20

May-07

C1

279.60

Jan-08

Price of Insulating material (IM)

D0

320.79

May-07

D1

367.12

Jan-08

Pric e of Transformer Oil (TB)

E0

35,573

May-07

E1

38,599

Jan-08

PV Formula as taken from IEEMA circular

Labour Component (W)

L0

May-07

L1

Jan-08

Please refer Page 11 of 13 in IEEMA attachment

0.28

Ref IEEMA/PVC/POWER/2003 Dt.01.06.2003

129.00

134.00

Applicable price variation formula as per PO:

P1 =

Po {

0.13

x ( A1/ Ao)

0.23

0.23

298979.00
--------------333023.00

0.13

0.21

1.0514

} 50,000,000

( B1/ Bo )

0.07

x(C1/Co)

0.07

x(D1/Do)

+ 0.07

x(E1/Eo)

+ 0.15 x(L1/Lo) } - Po

0.28

238209.00
---------------202243.00

0.07

279.60
----------267.20

0.07

367.12
----------320.79

+ 0.07

38599.00
134.00
----------- + 0.15 ----------- } - Po
35573.00
129.00

0.33

0.07

As per Actual Delivery

P1 =

P1 =

Po {

0.13

50,000,000

+ 0.08

+ 0.08

(Unit Ex works, less adv)

P1 =
P1 =
P1 =

50,000,000
52,570,421
2,570,421

{
-

Increase / Decrease in Rs. per unit

% Increase / Decreaseof PV per Unit

2,570,421

50,000,000

Quantity:

Total increase / Decrease in Rs.

5.14%

Page 1 of 1

2,570,421

+ 0.16

}-

50000000