Return on Total Assets:

The return on investment measures the overall effectiveness of management in generating profits with its available assets. In comparison, year 1998 was less than year 1997 in both companies because both companies reduced “net profit after tax” than increased “total assets”.  ULC’s return on total assets was little bit better than IDLC.                    

                                                                           1997                          1998
IDLC

   Net  Profit  after  tax                                      89,396,230             47,628,454                               
   Total  Assets                                              1,425,467,974         1,412,017,378
   Return on total assets                                      6.27%                       3.37%

 
ULC                                    

    Net Profit After Tax                                    63,864,232              44,146,107
    Total Assets                                                 956,382,647          1,142,895,614
    Return on total assets                                       6.67%                    3.86%

Return on Equity:

The return on equity measures the return earned on the owners’ investment in the company. The return on equity of ULC is better than IDLC because the equity is of ULC is smaller than IDLC though net profit of ULC is smaller than IDLC. 

                                                                            1997                       1998
IDLC
   Net  Profit  after  tax                                    89,396,230             47,628,454                              
   Total  Equity                                               325,848,845           336,023,982
   Return on equity                                            27.43%                    14.17%

 ULC
   Net  Profit  after  tax                                    63,864,232              44,146,107    
   Total  equity                                                 249,837,687          282,039,720
   Return on equity                                             25.56%                   15.65%