40 :- Calculate Debt to Equity Ratio from the following information :
Solution :-
Debt = Long – term Borrowings + Long – term Provisions
= 4,20,000 + 1,40,000
= Rs 5,60,000
Equity = Total Assets – Total Outside Liabilities
Total Assets = (Fixed Assets – Accumulated Depreciation) + Non – Current Investments + Long – term Investments + Current Assets
= (8,40,000 – 1,40,000) + 14,000 + 56,000 + 3,50,000
= Rs 11,20,000
Total Outside Liabilities = Non – Current Liabilities + Current Liabilities
= 5,60,000 + 2,80,000
= Rs 8,40,000
Equity = Total Assets – Total Outside Liabilities
= 11,20,000 – 8,40,000
= Rs 2,80,000
Debt to Equity Ratio = Debt/Equity
= 5,60,000/2,80,000
= 2 : 1