Question: Pavan Limited has made plans for the year 2 0 2 2 - 2 3 . It is estimated that the Company will employ total

Pavan Limited has made plans for the year 2022-23. It is estimated that
the Company will employ total assets of 25,00,000; 30% of assets
being financed by debt at an interest cost of 9%p.a. The direct cost for
the year are estimated at `15,00,000 and all other operating expenses
are estimated at `2,40,000. The sales revenue is estimated at `
22,50,000. Tax rate is assumed to be 50%. Required to calculate: (i)
Net profit margin (ii)Return on assets

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