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What is the total liability and shareholder equity

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Question - Company ABC Ltd is in the business of manufacturing household personal care products, e.g., hair oil, toothpaste, etc.

-The promoters of this company had set up its manufacturing plant in Pune about 15 years ago by investing Rs3 crore, inclusive of land cost, from personal capacity.

-The company owns the land where the manufacturing plant was set up. The land was purchased at Rs 1 crore, although its current market price is around Rs 15 crore.

-The company's financial health is not very sound and its debt burden has been rising. As of today, the company has a bank loan of Rs10 crore, which it needs to pay off within 3 years from the current year. It has dues payable to suppliers worth Rs2 crore, which are to be paid within 6 months.

-The company has invested net retained earnings worth Rs5 crore in the business over the years. These were the only source of fundings for the company. Based on the details presented above, answer the following question.

What is the total Liability + Shareholder's Equity (in crores) for the current year?

a. 25 crore

b. 10 crore

c. 20 crore

d. 15 crore

Reference no: EM132950697

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