The summarized profit and loss statement and the balance sheets for Beta Limited and Theta Limited are given as follows. 

Profit and Loss Statement for the Year ended 31st March 2017

Balance Sheet as on 31st March 2017

You are required to:

1. Compute the following ratios:

1. Gross Margin and Net Margin Ratio

2. Current Ratio

3. Total Assets Turnover Ratio, Fixed Assets Turnover Ratio and Current Assets Turnover Ratio

4. Return on Capital Employed

5. Return on Equity

6. Interest Coverage Ratio

2. Using the above ratios, analyse the financial position of both the companies in respect of profitability, liquidity, assets utilization, capital structure and return on investments.

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Particulars Net Sales Other income Cost of goods sold Operating expenses Depreciation Interest Income tax Profit after tax (in Million) Beta Limited 669,426 1,836 442,272 167,790 8,160 10,404 14,076 28,560 Theta Limited 289,782 1,632 160,650 98,328 3,570 4,692 7,956 16,218