In April 2018, the financial manager (FM) of India-based pharmaceutical company Dr. Reddy`s Laboratories (DRL) wanted to take a call on the liquidity position of the company before going ahead with the operations for the financial year 2018-19. He glanced through the current assets and current liabilities composition of the company (Refer to Exhibit-I for the Composition of Current Assets and Current Liabilities of DRL for the Financial Years 2017-18 and 2016-17). He then asked the management accountant of the company to prepare a variation statement comparing the current assets and current liabilities of the financial year 2017-18 with those of the the previous year 2016-17...

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