b) Mr. Shyam is planning to invest in the Indian IT sector, and he has identified two quality companies (P and Q) in the sector. Both companies are having similar characteristics in terms of profitability, liquidity, efficiency, and leverage ratios. However, some differences are there with respect to the valuation ratios. These are [5 Marks] You are supposed to comment on each of the ratios mentioned above, and let Mr. Shyam know which company is better for investment purpose and what is your rationale for such investment? 1Set. (B) The following are the financial statements for Arvind Fashion Ltd. for last two years. ARVIND FASHIONS LTD Balance Sheet Profit and Loss Account (Amount in Rs. Crores) (Amount in Rs. Crores) You are required to (a) Calculate and interpret: liquidity ratio (current ratio, quick ratio) and solvency ratio (debt-equity ratio, debt-to-total capital employed ratio, interest coverage ratio). [5 Marks] (b) Calculate and interpret: turnover ratio (inventory turnover, debtors' turnover, total assets tumover ratio) and profitability ratio (ROI and ROE). [5 Marks]