Measurement of Performance of Transit Agencies using Value-Addition Process

Abstract

Among enough methods of analyzing the financial statements of transit industries valueadded (VA) analysis is a competent method to analyze the financial statements of transit industries. Operational expenses, depreciation and retained earnings are the few important factors that facilitate VA study. In this paper an attempt was made to study the selected public transport corporations / Transit agencies (Tamil Nadu, India) for a period of five years (1998-99 to 2002-03). Performance difference between the base year and subsequent years has been evaluated using net value added (NVA). Representational factors likeemployees, government, loan and capital to support the operations have been considered to study the application of VA. This paper identifies  the wide use of performance indicators for the measurement of performance. A weightage-assigning model has been developed to consolidate the variation between the years and to compare the transit agencies (TAs).