Calculate Current Ratio and Liquid Ratio.
Current ratio = \(\frac {\textit{Current assets}}{\textit{Current liabilities}} \)
=\(\frac{24,00,000}{30,00,000}\) = 0.8 :1
Current Assets = Inventories + Trade Receivables + Cash + Short term Loans and Advances
= 12,00,000+ 9,00,000+ 2,28,000+ 60,000 = Rs. 24,00,000
Current Liabilities = Trade Payables + Short-term Borrowing + Short-term Provisions
= 23,40,000 + 6,00,000 = 60,000 = Rs.30,00,000
2. Quick Ratio
Liquid ratio = \(\frac {\textit{Liquid assets}}{\textit{Current liabilities}} \)
= \(\frac {\textit{12,00,00}}{\textit{30,00,000}} \)= 0.4:1
Quick Assets = Trade Receivables + Cash + Short term Loans and Advances,
= 9,00,000 + 2,28,000 + 72,000 = Rs. 12,00,000
