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Question
Calculate the Current Ratio (up-to two decimal places) of Windlas Biotech Ltd. from the following extract of its Annual Report of 2021-22.
| Particulars | (₹) (in millions) |
| Opening Inventory of consumables (raw materials) | 264.79 |
| Closing Inventory of consumables (raw materials) | 389.85 |
| Opening Inventory of finished goods and work-in-progress | 149.82 |
| Closing Inventory of finished goods and work-in-progress | 197.24 |
| Current Assets (other than inventory of consumables and of finished goods and work-in-progress) | 3,229.23 |
| Current Liabilities | 936.52 |
Solution
Current Ratio = `("Current Assets")/("Current Liabilities")`
Total Current Assets = Current Assets + Closing inventory of consumables
(raw materials) + Closing inventory of finished goods & work in progress
= 3,229.23 + 389.85 + 197.24
= ₹ 3,816.32 millions
Current Ratio = `(3,816.32)/936.52`
= 4.08 : 1
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