Operating profit in 1991-92 = Rs. 160 lakh
Operating profit in 1990-91 = Rs. 130 lakh
\[
\text{% Increase} = \frac{160 - 130}{130} \times 100 = \frac{30}{130} \times 100 \approx 23.08%
\]
Rounding to the nearest option given, it matches most closely to 23%, but if precise rounding is avoided, actual increase is ~23.1%. However, considering typical exam rounding to nearest whole number, this should be 23%.
If the question considers exact values, answer: 23%.
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Question: 2
The interest burden in 1991-92 was higher than that in 1990-91 by:
Show Hint
When given percentages on pie charts, convert them to absolute values before making comparisons.
Interest in 1991-92 = 40% of 160 lakh = 64 lakh
Interest in 1990-91 = 30% of 130 lakh = 39 lakh
Difference = 64 - 39 = 25 lakh.
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Question: 3
If on average, 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company in the given two years amounted to:
Show Hint
Divide interest amount by interest rate to get principal (borrowed funds) when rate is known.
From Q162:
Borrowed funds in 1991-92 = Interest / 0.20 = 64 / 0.20 = 320 lakh
Borrowed funds in 1990-91 = 39 / 0.20 = 195 lakh
Total borrowed funds over two years = 320 + 195 = 515 lakh.
However, if question asks “total borrowed funds used by the company” meaning average at a time, careful reading is neede(d) Here it sums across years: Rs. 515 lakh.
Thus answer = Rs. 515 lakh.
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Question: 4
The retained profit in 1991-92, as compared to that in 1990-91 was:
Show Hint
Percentage point change differs from percentage change; read the wording carefully.
Dividend in 1991-92 = 8% of OP = 0.08 × 160 lakh = 12.8 lakh.
But if equity base unchanged and dividend is per share, the total dividend earnings = actual dividend amount = Rs. 12.8 lakh.
However, if “earnings by shareholders” means cumulative equity return including retained profit allocated, it might change. Here, given only dividend slice, answer = Rs. 12.8 lakh.
