1. Economic Value Added EVA By M/s Stern Stewart Company, USA

2. This is Calculated for core business only. EVA = ( ROOC – WACC) OC ROOC = Return on Operating Capital WACC = Weighted Average Cost of Capital OC = Operating Capital Net operating Profit After Tax (NOPAT) ROOC = x 100 Operating Profit

3. NOPAT EBIT **** Less: Non Operating Income **** Operating EBIT **** Less: Tax ( Economic Tax) **** OPAT / NOPAT ****

4. WACC Kd = Rate of Debt ( 1- Tax) Total Cap Employed Kp = Rate of Preference Dividend Total Cap Employed Ke = [ RFR + ß ( MRR – RFR) ] Total Cap Employed

5. WACC Kd x Debt Kp x Pref. Share Capital Ke x Eq. Share Capital Total

6. Capital Employed Eq. Share Capital Add : Pref. Share Capital Add : Reserve & Surplus Add : Debt Less: Losses Total Capital Employed Less : Non Operating Assets Operating Capital