From the following information, calculate the 'Proprietary Ratio':
The Proprietary Ratio is calculated as:
\[ \text{Proprietary Ratio} = \frac{\text{Total Equity}}{\text{Total Assets}} = \frac{\text{Share Capital} + \text{Reserves and Surplus}}{\text{Total Liabilities} + \text{Total Assets}} \]
Here, Total Equity = ₹ 4,00,000 + ₹ 3,00,000 = ₹ 7,00,000
Total Liabilities = ₹ 3,50,000 + ₹ 1,50,000 + ₹ 5,00,000 = ₹ 10,00,000
The ratio is:
\[ \text{Proprietary Ratio} = \frac{7,00,000}{10,00,000} = 0.70 \]