A STUDY ON CAPITAL

MANAGEMENT OF RATHNA BIO

TECK PVT LIMITED
PRESENTATION BY
V GIRIKUMAR
 INTRODUCTION
• Capital management of a company is usually
examined on the basis of two basic dimensions
long-term and short-term evaluation.
• The former is used to ensure the capital structure
optimization, which is the proportion of debt and
equity to maximize firm’s value.
• Short term analysis aims at liquidity
management
 STATEMENT OF PROBLEM
• Capital management is an integral part of
planning. effective capital management define
on how well the long term capital and working
capital management Are effectively managed
• The organization either concentration working
capital or long term capital but accompanied
prospect of both short term (&) long term
capital provide better understanding of the
effective base of capital management
 LITERATURE OF REVIEW
• Long Capital management is required to keep
the current operations going. It is a firm's
investment in current assets and therefore it is
essentially an investment activity.
• all aspects of the administration of current
assets and current liabilities. It refers to the
decisions regarding the firm's current assets
and how they are financed.
 Applied review
• Salleh Din (2018) on the study a capital
management and capital structure of firms. The
current ratio was taken as representative of the
result of capital management policy and financial
leverage as the bench mark for capital structure.
• Stephen A. Feinberg (2016) on the study The
founder of Cerberus Capital Management, an
investment firm that owns companies like the
gun maker Remington Outdoor and the
supermarket chain Albertsons
 Company profile
• The company has the herbal medicines. It was in 1905 Mr. Chenna Reddy (great
grandfather of the present MD B.Sudhakar Reddy) was a legendary figure who
used to treat paralysis patients successfully.
• RathnaBiotech is backed by Rathna Packaging India Pvt. Ltd. at Hosur established
in 1999 by Mr. B.G. Reddy B.E (Honours) and Mr. B. Sudhakar Reddy
B.Tech., Polymer. Rathna Packaging India Pvt. Ltd.
• It is one of the leading packaging companies in south India with more than 125 Cr.
of turnover / year. Its products are exported to a number of countries across the
globe.
• 1999-2003
Mrs. B. Rathna reddy Director of the company established an herbal park
with over 400 medicine plans.
2006
Herbal extraction plant to separate the active ingredients was started with 2
nos 3KL extractors.
2010
License with GMP Certification obtained to make over 23 nos Ayurvedic
drugs.
2011
Medicines launched in AP and Karnataka. Modern lab with Analytical,
Microbiology department established HPLC & other sophisticated instruments
installed. The Manufacturing activities are brought directly under qualified
Ayurvedic doctors, MD in Ayurveda.
• Products :

• Slimo is researched herbal product, which can be

safely used for weight loss it has no side effects.

• R-Liv is hepato protective and corrective. It

stimulates the Liver enzymes. It promotes cellular
repairs. It prevents fibrosis of liver. It has a free
radical scavenging activity and protects the DNS
from mutation.
 Industry profile
• Biotech is the application of scientific and
engineering principles to the processing of
materials by biological agents to provide goods
and services.
• From its inception, biotechnology has maintained
a close relationship with society.
• Although now most often associated with the
development of drugs, historically biotechnology
has been principally associated with food,
 Analysis
• CURRENT RATIO:
year current assest current laibility current ratio
2013-14 31413972 41320746 0.76
2014-15 31593285 35494876 1.82
2015-16 32780029 7522578 4.36
2016-17 27610794 4489172 6.15
2017-18 26924145 6003700 4.5

• ALTMAN S-SCORE:
year 1.2a 1.4b 3.3c 0.6d 1.0e z score
2013-14 0.1 0 0.08 0.06 0.13 0.37
2014-15 0.53 0 0.016 0.06 0.03 0.636
2015-16 0.5 0 0.33 0.068 0.17 1.068
2016-17 0.43 0 0.03 0.07 0.16 0.69
2017-18 0.46 0 0.04 0.06 0.08 0.64
 FINDINGS
• Net profit margin ratio is fluctuating during the study period it is
high during year 2013-2014and low during the year 2016-2017,
• Current ratio is fluctuating during the study period it is high during
year 2013-2014 and low during the year 2017-2018
• Equity ratio decreasing for the study period it is high during year
2013-2014 and low during the year 2017-20187
• Rate on return assets ratio fluctuating the study period it is high
during the year 2013-201-and low during the year 2016-2017
• Assets turnover ratio fluctuating the study period it is low during
the year 2016-2017 and high during the year 2015-2016
• Rate on return equity ratio is decreasing on the study period it is
low during the year2014-2015 and high during the year 2013-2014
• Altman z score is fluctuating on the study of period it is high during
the year 2015-2016and low during the year 2013-2014.
• The statement current ratio is 2:1 the
standadised is the year 2014-2015 the ratio is
high
• The net profit margin ratio in normal 9%
during the year 2017-2018is an acceptable
ratio
• The equity ratio is where it is truned 40-50%