A STUDY OF VALUE ADDED STATEMENT AND PATTERN OF VALUE ADDED DISTRIBUTION

In recent years, Managers have turned their attention to the ways increasing the value of their companies. A number of computing measures have been developed and marked by Investment and Consulting firms. Indian Annual reports now include more than the minimum legal requirements. The following paper discusses the aims of the Value Added Statement as part of corporate social reporting to enable conclusions to be drawn as to the suitable format to meet these aims. Documentary Data sources were extrapolated from annual financial reports of Madras Cement Limited to establish the value added distribution of the company. The Value Added ratios are identified and computed and simple correlation analyses were used to establish if they exists any relationship among the variables. Value added ratios need to be computed and reported as they improve on the information capacity of the Value added statement and will make it more attractive to user groups and stakeholders. Value added statement should be used to construct value added based ratios, as important diagnostic and predictive tools for making comparison of company's performance.