The management of Holly Polly Printers Limited is concerned about the decline in the return on equity

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The management of Holly Polly Printers Limited is concerned about the decline in the return on equity of the company over the last three years notwithstanding significant improvement in profits over the same period of time. You are required to calculate the ROE of the company and identify the key reason for the declining trend on the basis of the following information: 

Particulars Profit after tax Sales Non-current assets Current assets Shareholders' funds 2017 740 1,980 1,780

On the basis of your analysis, make suggestions to the management for improvement.

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