| Particulars | Amount (Rs.) |
| Share Capital | 5,00,000 |
| Reserves and Surplus | 2,50,000 |
| Net Fixed Assets | 22,50,000 |
| Non-current Trade Investments | 2,50,000 |
| Current Assets | 11,00,000 |
| 10% Long-term Borrowings | 20,00,000 |
| Current Liabilities | 8,50,000 |
| Long-term Provision | NIL |
SOLUTION
Net Profit before tax = 6,00,000
Net Profit before interest, tax and dividend = Net Profit before tax + Interest on long-term borrowings
= 6,00,000 + 10% of 20,00,000
= 6,00,000 + 2,00,000
= 8,00,000
Capital Employed = Share Capital + Reserves and Surplus + Long-term borrowings
= 5,00,000 + 2,50,000 + 20,00,000
= 27,50,000
Return on Investment = Net profit Before Interest, Tax and Dividend × 100 / Capital Employed
= 8,00,000 / 27,50,0000 × 100
= 29.09%