Input credit on full value product on captive consumption

i want to ask 

S ltd. manufacturer two products product A and Product B, product A is in composition scheme with a liability of 2% and Product B is in normal scheme with liability of 12.36%.

produt A required raw material R with input credit of 12.36% which is not availed due to composition scheme

and product B required produt A as a raw material for captive consumption

i want to ask the exice liability of S ltd. on product B

it can be

1)  12.36% (considering product A as captive consumption on which no duty paid and without input credit on raw material R)

2)  14.36% (  12.36% on product B + 2% on composition scheme on product A)

3)  10.36% ( 12.36% - 12.36% input credit on raw material R)

4) any other option

please suggest me the correct option along with notification/case/rules

THANKS in advance

regards

Sachin