Performance of an enterprise is usually judged on the basis of profits earned in term of Rate of Return on Investments. However, in case of public enterprises, profitability as the criterion for measuring the performance is being questioned, since service oriented organization like State Transport Undertakings (STUs) deprived of freedom possessed by private units. It is revealed that state government has right to impose M.V. Tax and passenger tax, sometime the State Government frequently conceive higher burden of taxes on STUs to show losses or to bring the profitability at lower point. The second reason is that there is always lag between economic fare and actual fare permitted by the State Government. The fare revision more than often is inadequate and the decision is not taken in time, hence such delays accumulate the losses due to gap between higher cost burden and constant fares. The decisions about these units are taken outside the enterprises to which the enterprise has to conform. The over-riding social objectives and other environmental constraints are, therefore, stressed more often on the performance evaluation of service sector organization like STUs. Public enterprises require therefore an objective criterion which embraces the wider interests of the community. Value-Added as a basis for performance appraisal is found suitable since it is the value which an organization adds either through production process or through providing the service. Aggregation of value added from all economic activities gives estimated gross national product. It is one of the primary objectives of planned economic development. Therefore, the criterion of value-added is more appropriate than the profit. Value-added includes payment to employees, payment to exchequer (as tax), payment to loan contributors (Interest), and payment towards contributors of capital (Profit). The present study deals with the "Performance Analysis through Value-added Statement" (A Case Study of State Road Transport Corporations).