Read the following information and answer the question.

Following is the Balance Sheet of Titanic Ltd. as at March 31, 2022.

Current Ratio for Titanic Ltd. for the year ended March 31, 2022 will be:

0.8:1

The correct answer is option 1- 0.8:1.

Current Assets = Inventories + Trade Receivables + Cash and Cash equivalent + Short-term loans & advances
                        = 12,00,000 + 9,00,000 + 2,28,000 + 72,000
                        = 24,00,000

Current liabilities = Short term borrowings + Trade Payables + Short-term Provisions
                           = 6,00,000 + 23,40,000 + 60,000
                           = 30,00,000

Current ratio = CA/CL
                      = 24,00,000/30,00,000
                      = 0.8:1