HR Analytics Question

Archit Mangal, MBA was really happy that he finally got the job of HR analyst in a leading
multinational consulting firm, Coach Consulting Ltd. Though he had HR analytics as an
elective in his MBA, he was not very confident about calculating accurate HR efficiency and
effectiveness ratios. He was hoping to receive rigorous training on ratio analysis from the
company during his six-month probation period. Unfortunately, the Company had training
programmed that only dealt either with advance HR analytics or customized HR analytics.
Mangal’s boss, Rajesh Khanna, called Mangal to his cabin and gave him task to calculate
Human Economic Value Added (HEVA), Human Capital Value Added (HCVA) Human
Capital ROI (HCROI) for their client, CA International Pvt. Ltd. Khanna gave him following
figures to support the required calculation.
He said last year CA International Pvt Ltd. Received a total of ₹ 80,000,000 from sales. Cost
of goods sold was ₹ 35,000,000, Cost of equity was ₹ 2.750,000, spending on day to day
operations ₹ 15,000,000 on which 10% tax was applicable, total payroll amounted to ₹
10,000,000, and total number of full employees in that period was 1,020,000.
Khanna asked Mangal to come back with the required values within 30 minutes. This30
minutes deadline was a real pain for Mangal as he has to search for the meaning and formulae
to calculate the ratios.
Anyways, he somehow managed to calculate the ratio and reported the following to the boss
HEVA=₹ 1,003,
HCVA=₹2 Billion,
HCROI=₹2.3 Billion.
Do you think Mangal’s figures are correct? If not calculate HEVA, HCVA, HCROI and write
you observation on the figures provided by Mangal.