Calculate the Proprietary Ratio from the following information:

Share Capital = ₹5,00,000
Non-Current Assets =  ₹22,00,000
Reserves and Surplus =  ₹3,00,000
Current Assets = ₹10,00,000

25%

The correct answer is option 2- 25%.

Shareholders funds = Share Capital  + Reserves and Surplus
                                = ₹5,00,000 + ₹3,00,000 
                                = ₹8,00,000

Capital employed/Net assets = Non-Current Assets + Current Assets
                                              = 22,00,000 + 10,00,000
                                              = 32,00,000

Proprietary Ratio = Shareholder's funds/Capital employed x 100
                            = (8,00,000/ 32,00,000) X 100
                            = (1/4) X 100
                            = 25%