VALUE ADDED STATEMENT (VAS) : A CRITICAL ANALYSIS : A CASE STUDY OF STEEL AUTHORITY OF INDIA LIMITED

EDUCATION

A Value Added Statement (VAS) is a financial statement which shows how much value (wealth) has been created by an enterprises during a certain period through utilization its capacity, capital, manpower and other sources. The main object of a company is to generate wealth. If a company cannot create it, then it is a burden on the society and there is no reason to keep it running. The wealth created by company is distributed among various factors of the society. The term value added means an excess of turnover plus income from services over the cost of goods and services obtained from outside the business. This money divided among the various parties who created it. Thus the value added income would include wages, interest, taxes, dividends paid to shareholders and retained income of the company. The aim of this paper is to analyze value added ratios of Steel Authority of India Ltd. (SAIL). Value added ratios were calculated on the basis of value added statement and analysed. This paper focuses on how the value added ratios were help to the company to measure the efficiency and productivity of an organization.

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