Tata Steel ltd Calculation of EVA

31-03-2011

26-11-2011

PE ratio 6.27 3.3 Ke 0.1594896 0.3030303

Tax rate(%)

(Rs in crore)

rate 30

Calculation of NOPAT

surcharge 2.25

EC @ 2% 0.645

Particular

amt amt

SHEC @ 1% 0.3225

EBIT

9776.85

33.2175

less:Non-operating income

707.69 Operating EBIT

9069.16

less: Tax @ 30%

2720.75

surcharge @7.5%

204.06 Education cess @2%

58.50

SHEC @1%

29.25

3012.55

NOPAT

6056.61

Calculation of operating capital employed

Particular

amt Share capital

959.41

share warrant

178.20 Reserve & surplus

45807.02

Hybrid securities

1500.00 Secured loan

2009.20

Unsecured loan

26291.94 Total capital employed

76745.77

Less:Non operating capital employed 44676.20 Operating capital

32069.57

Calculation of cost of operating capital employed

Particular

amt % amt % Hybrid securities

118.205 7.880335 118.205 7.880335

Interest on loan

1180.741 4.172063 1180.741 4.1720627

Cost of Equity

7487.182 15.94896 14225.65 30.30303 Cost of total capital employed

8786.128

15524.59

Cost of operating capital employed 3671.438

6487.224

Calculation of EVA

amt

amt

NOPAT

6056.61

6056.61 Cost of operating capital employed 3671.438

6487.224

EVA

2385.17

-430.61