Profit after tax and interest is $\text{Rs. }1,60,000$. The tax rate is $20\%$. $10\%$ long term borrowing is $\text{Rs. }20,00,000$. Find the profit before tax and after interest.

Let's find the Profit Before Tax (PBT) using the given values step-by-step:1. Understand the relationship:
$$\text{Profit After Tax (PAT)}=\text{Profit Before Tax (PBT)}-\text{Tax}$$
$$\text{PAT}=\text{PBT}\times (1-\text{Tax Rate})$$
2. Substitute the values:Given:
$$\text{PAT}=\text{Rs. }1,60,000$$
$$\text{Tax Rate}=20\%=0.20$$
$$\Rightarrow 1,60,000=\text{PBT}\times (1-0.20)$$
$$\Rightarrow 1,60,000=\text{PBT}\times 0.80$$
$$\Rightarrow \text{PBT}=\frac{1,60,000}{0.80}=\text{Rs. }2,00,000$$
Since the problem explicitly gives the final PAT which is already after interest, the derived PBT value ($\text{Rs. }2,00,000$) represents the profit before tax and after interest. (The info regarding long term borrowing interest is redundant for this specific question layer).