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The following figures are extracted from the balance sheet of Swadesha Ltd. 

 Net profit after tax: Rs. 2,00,000 

 Net profit before tax: Rs. 2,80,000 

 Total Investment(Owned + Borrowed): Rs. 4,00,000 

 Own funds: Rs.1,00,000 

Calculate Return on Equity for Swadesha Ltd.

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Return on Equity = Net profit after tax x 100/  Equity 

= 2,00,000/1,00,000 x 100 

= 200 %

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