NP Ratio Calculation:

The NP Ratio, also known as the Net Profit Ratio or Net Profit Margin, is a profitability ratio that measures the percentage of net profit earned on sales. It indicates the efficiency of a company in generating profit from its operations.

To calculate the NP Ratio, we need the following information:

1. Revenue from Operations: ₹80,00,000
2. Gross Profit Ratio: 25%
3. Indirect Expenses: ₹8,00,000

Step 1: Calculate Gross Profit
Gross Profit is the difference between Revenue from Operations and Cost of Goods Sold (COGS). The Gross Profit Ratio is given as 25%.

Gross Profit Ratio = (Gross Profit / Revenue from Operations) * 100

Let's assume the Cost of Goods Sold (COGS) as 'X'.

25 = (Gross Profit / 80,00,000) * 100
25 = (80,00,000 - X) / 80,00,000
25 * 80,00,000 = 80,00,000 - X
2,00,00,00,000 = 80,00,000 - X
X = 80,00,000 - 2,00,00,00,000
X = 78,20,00,000

Therefore, the Gross Profit is ₹78,20,00,000.

Step 2: Calculate Net Profit
Net Profit is the difference between Gross Profit and Indirect Expenses.

Net Profit = Gross Profit - Indirect Expenses
Net Profit = ₹78,20,00,000 - ₹8,00,000
Net Profit = ₹77,12,00,000

Therefore, the Net Profit is ₹77,12,00,000.

Step 3: Calculate NP Ratio
NP Ratio = (Net Profit / Revenue from Operations) * 100

NP Ratio = (77,12,00,000 / 80,00,000) * 100
NP Ratio = 96.4%

Therefore, the NP Ratio is 96.4%.

Conclusion:
The NP Ratio is calculated using the formula (Net Profit / Revenue from Operations) * 100. In this case, the Net Profit is ₹77,12,00,000 and the Revenue from Operations is ₹80,00,000. Thus, the NP Ratio is 96.4%. This means that for every ₹100 of revenue generated, the company has a net profit of ₹96.4.