Anyone can help me what is the good Gross and Net Profit Ratio. Because we are going to file our IT and we are getting our GPR nearly 44% and NPR 1.98%. Our company is a Private Limited Company and I want to know whether it is good ratio? Will it accept for any bank loan?
03 September 2016
Gross profit ratio= gross profit as per trading account/sales after sales returns
Net profit ratio =net profit ad per profit and loss account/sales after sales returns
Net profit is the figure which we transfer to balance sheet This is my opinion The main ratios bank look into are
1,current ratio 2,Quick ratio 3,return on tangible assets 4,return on investment Banks usually finance up to 2. Crores by projected turn over method. I have explained what I know about
CAclubindia
