📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    XYZ Ltd. is a medium-sized manufacturing company. Its

    summarized Balance Sheet and additional financial information for the year ended 31st March 2024 are given below. Use this data to answer the following independent questions. Balance Sheet of XYZ Ltd. (as on 31st March 2024) Additional Information (from P&L A/c) • EBIT = ₹12,00,000 • Provision for tax = 40% Compute the Return on Capital Employed (ROCE).
    A 30% Correct Answer Incorrect Answer
    B 46% Correct Answer Incorrect Answer
    C 35% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E 20% Correct Answer Incorrect Answer

    Solution

    Capital Employed = Equity + Debt = 20,00,000 + 6,00,000 = 26,00,000 ROCE = EBIT ÷ Capital Employed × 100 = 12,00,000 ÷ 26,00,000 × 100 = 46.15% 

    Practice Next
    ask-question