76 :- From the following, calculate Debt to Capital Employed Ratio :
10% Preference Share Capital Rs 5,00,000; Equity Share Capital Rs 15,00,000; Securities Premium Rs 1,00,000; Reserves and Surplus Rs 2,00,000; 9% Loan from IDBI Rs 30,00,000.
Solution :-
Long Term Debt = 9% Loan from IDBI
= Rs 30,00,000
Capital Employed = 10% Preference Share Capital + Equity Share Capital + Reserves and Surplus + 9% Loan from IDBI
= 5,00,000 + 15,00,000 + 2,00,000 + 30,00,000
= Rs 52,00,000
Debt to Capital Employed Ratio = Long term Debt/Capital Employed
= 30,00,000/52,00,000
= 0.58 : 1