You are working as a Financial Analyst for an Investment company based in Mumbai. Your supervisor has asked you to conduct some research on expanding your firm's portfolio in the airline sector.

You look at the company's balance sheet and cash flow statements. From cash flow statements you ascertain that net income was INR3634.5 crore and INR5944.5 crore for FY2020-21 and FY2021-22 respectively. For your report on an investment decision, perform the following;

(1) Calculate the company's liquidity and leverage ratios. (2) Differentiate between the terms liquidity and leverage ratios. (3) Identify the company's return on assets (ROA) and return on equity (ROE) (4) Conduct a horizontal analysis of non-current assets and current liablities. Identify and discuss areas from your analysis that have witnessed an increase or decrease. (5) Summarize your findings in 100-words.

Balance Sheet (Indian Sky Airlines) in Crores \begin{tabular}{|l|r|r|} \hline & As of 31st March & As of 31st March \\ & 2022 & 2021 \\ \hline Current Assets & & \\ \hline Cash & 3505.5 & 3873.3 \\ Accounts Receivables & 843.2 & 348.5 \\ Inventory & 33.44 & 41.1 \\ \hline \multicolumn{1}{|c|}{ Total Current Assets } & 4382.14 & 4262.9 \\ \hline Non-Current Assets & & \\ \hline Equipment & 17545.9 & 17143 \\ Other Tangible Assets & 958.3 & 843.1 \\ Financial Assots & 1563.1 & 1831.1 \\ \hline \multicolumn{1}{|c|}{ Total Non-Current Assets } & 20067.3 & 19817.2 \\ \hline \multicolumn{1}{|c|}{ Total Assets } & 24449.44 & 24080.1 \\ \hline \multicolumn{2}{|r|}{ Als. } \\ \hline \end{tabular}