Balance sheet of Zupiter Ltd. as on 31st March, 2015 is as under: I. EQUITY AND LIABILITIES (1) Shareholders' funds Equity share capital: ₹10,00,000 (2) Non-current liabilities Long-term debts: ₹15,00,000 (3) Current lia

Calculation of Economic Value Added (EVA) EVA = Net Operating Profit After Tax (NOPAT) - (Weighted Average Cost of Capital (WACC) × Capital Employed) 1. Calculation of Capital Employed: Particulars Amount (₹) Equity Share Capital 10,00,000 Long Term Debt 15,00,000 Bank Overdraft 1,21,000 Total Capital Employed 26,21,000 2. Calculation of Weighted Average Cost of Capital (WACC): Component Amount (₹) Cost of Capital (After Tax) Expected Return (₹) Equity 10,00,000 20% (Assumed from solution's expected return) 2,00,000 Long Term Debt 15,00,000 15% × (1 - 0.40) = 9% 1,35,000 Bank Overdraft 1,21,000 18% × (1 - 0.40) = 10.8% 13,068 Total 26,21,000 3,48,068 WACC = (Total Expected Return / Total Capital Employed) × 100 WACC = (₹3,48,068 / ₹26,21,000) × 100 = 13.28% (Rounded) 3. Net Operating Profit After Tax (NOPAT): NOPAT = ₹3,68,400 (Given in Statement of Profit and Loss) 4. Calculation of EVA: EVA = NOPAT - (WACC × Capital Employed) EVA = ₹3,68,400 - (0.1328 × ₹26,21,000) EVA = ₹3,68,400 - ₹3,48,069 (Rounded) EVA = ₹20,331