A company with a capital of Rs 7,00,000 earns Rs 50,000 a year, while the return on investment in that industry as a whole is 10%. Can it be called a situation of over capitalisation? If it is...

A company with a capital of Rs 7,00,000 earns Rs 50,000 a year, while the return on investment in that industry as a whole is 10%. Can it be called a situation of over capitalisation? If it is over-capitalisation, indicate the amount by which profits need to be raised.