For company R if the expenditure had increased by 20% in the year 2001 from the year 2000 and the company had earned profit of 10% in 2000, the company’s income in 2000 was (in Rs. crore).

Expenditure of company R in 2000
$$\eqalign{ & = \frac{45\times100}{120} \cr & = \text{Rs. 37.5 crores} \cr }$$
Let the income of company in 2000 be Rs. $$x$$ crores
$$\eqalign{ & \therefore 10 = \frac{x-37.5}{37.5}\times100 \cr & \Rightarrow x - 37.5 = \frac{37.5\times10}{100} \cr & \Rightarrow x - 37.5 = 3.75 \cr & \Rightarrow x = 37.5+3.75 \cr & \Rightarrow x = \text{Rs. 41.25 crores} \cr} $$