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.  GEOJIT PNB PARIBAS today is a leading retail financial services company in India.J George and Mr.COMPANY PROFILE GEOJIT PNB PARIBAS  The company started in 1987 by C. Ranajit kanjilal and became the Public Limited company by the name Geojit securities LTD.

Mahesh Vyas Non . J. C.Executive & Independent Director Mr.Alkeshkumar Sharma Non .Executive Director Mr.Executive Director Mr.Executive Director .Executive & Independent Director Mr.Executive & Independent Director Mr. George Managing Director & Chief Promoter Mr. Olivier Le Grand Non .Executive Director Mr. Punnoose George Non . Rakesh Jhunjhunwala Non . A. Jean Christophe Gougeon Non . Ramanathan Bupathy Non .BOARD OF DIRECTORS          Mr. P. Kurian Non .Executive & Independent Chairman Mr.


and meeting the current international standards of securities market.VISION AND MISSION STATEMENT Vision  Their vision is to be the most respected company in the financial services space. efficient and transparent securities market to investors using electronic trading systems.  Providing a fair. debt instruments and hybrids. Mission  Establishing a nation-wide trading facility for equities.  Enabling shorter settlement cycles and book entry settlements systems. .  Ensuring equal access to investors all over the country through an appropriate communication network.

Economic value added is the method to determine whether the firm is earning the higher rate of return on the entire funds at which the cost of funds are measured in terms of weighted average cost of capital.  Economic value added is the performance metric that calculates the value creation of the shareholders investment. Measures of performance Performance measurement metric is categorized into:  Traditional measures of performance indicator.INTRODUCTION TO THE TOPIC RELATIONSHIP OF ECONOMIC VALUE ADDED & RETURN ON CAPITAL EMPLOYED WITH RESPECT TO SHARE PRICE.  Modern method of Performance indicators .

TRADITIONAL MEASURES  Earning before interest and tax  Return on assets  Return on equity  Return on investment  Net profit ratio  Earning per share  Return on capital employed .

MODERN MEASURES  Economic value added  Market value added  Cash value added .

.  According to George Athanassakos (2007). commented that it is but one of many tools being developed to account for the capital invested in an organization by the true owners of that organization .the shareholders.  Dodd and Chen (1996.) observed that EVA is the difference between companies adjusted net operating profit (after taxes) in a particular year and it total cost of capital. the Value-based management (VBM) is a management philosophy that uses analytical tools and processes to focus an organization on the single objective of creating shareholder value.REVIEW OF LITRATURE  Baatz (1994).

.  To calculate the relationship between EVA with respect to the share prices movement of the selected companies.  To analyze weather the company is creating wealth to shareholders .OBJECTIVES OF THE STUDY  To measure EVA & ROCE for the sample companies from various sectors.  To calculate the relationship between ROCE with respect to the share prices movement of the selected companies.


OUTCOMES  EVA usually is influenced by the weighted average cost of capital. taxes imposed by the government. . EVA is basically based on the historical data of the company. risk free rate of return & market return. This creates the wealth to share holders. It is defined as Net operating profit after taxes subtracted with the cost of capital tied in operations. Stated EVA is only the measure of wealth creation to shareholders. ROI does not create any wealth to the share holders. and EVA better reflects the value and creates the wealth to the shareholders. Economic Value Added is a residual income variable. EVA is also affected by the Risk Free rate of Return. Traditional measures of the performance like ROCE. And      weighted average cost of capital is influenced by Beat of portfolio. government policies.