The various balances of X Ltd. are as follows as at 31st March, 2019: Particulars | ₹ 4,500, 12% preference shares of ₹100 each | 4,50,000 6,000 equity shares of ₹100 each fully paid | 6,00,000 General Reserve | 3,00,000

Calculation of Capital Employed Fixed Assets = 14,00,000 Trade Investments = 1,00,000 Current Assets = 825000 2325000 Less: Current Liabilities = (550000) Net Capital employed 1775000 Computation of Profit available to Equity Shareholder Average profit Before Tax = 650000 Less: Income Tax @ 40% = (260000) Net profit after Tax 390000 Less: Preference share dividend = (54000) Profit available for Equity Shareholder 336,000 Expected Rate of return Profit Available for equity shareholder / Total paid up Equity share capital x 100 = 3,36,000/600000 x 100 = 56% Profit Earned on Net Capital employed Average profit before Tax = 650000 Less: Income from Non Trade Investment (25000*10%) = (2500) 647500 Less: Income tax @ 40% (259000) Net Profit after Tax 388500 Add: Debenture Interest 35000 Profit Earned 423500 Actual Rate of Return = Profit Earned / Net capital employed x 100% = 423500 / 1775000 x 100% = 23.86% Value of Equity Shares: On the basis of Expected Rate of Return = Expected Rate of Return / Normal Rate of Return x paid up value per Equity Share = 56 / 15 x 100 = ₹373.33 On the basis of Actual Rate of Return = Actual Rate of Return / Normal Rate of Return x paid up value per Equity Share = 23.86 / 15 x 100 = ₹159.07