Factsheet SYNCOM

SYNCOMHEALTHCARELTD
STAKEHOLDERS EMPOWERMENT SERVICES
SECTOR:PHARMACEUTICALS
www.syncomhealthcare.com
REPORTINGDATE:31STMAY,2016
SyncomHealthcareLtd
31stMay,2016
TABLE1MARKETDATA(STANDALONE)(Ason31stMay,2016)
NSECodeSYNCOM
SectorPharmaceuticals
NSEMarketPrice()
BusinessGroupIndianPrivate
YearofIncorporation2002
TTMP/E
TTMP/BV
FaceValue()
52weekHigh/Low()
7.10 NSEMarketCap.(Cr.)
10.00 Equity( Cr.)
15.45/4.40 Networth(Cr.)
28.48
40.00
163.67
N.A. TradedVolume(Shares)
0.04 TradedVolume(lacs)
1,96,895
13.98
SourceCapitaline
COMPANYBACKGROUND
CorporateOffice:
502AdventAtria,
ChincholiBunderRoad,Malad
(W),
Mumbai400064,Maharashtra
Syncom Healthcare Ltd was incorporated on July 29, 2002 for marketing of
pharmaceutical formulations. The company was promoted by Ajay S. Bankda and Jyoti
Bankda.ThecompanyreceivedthecertificateforcommencementofbusinessonAugust
2, 2002. Initially, the company started their journey with the marketing of the
pharmaceuticalsproductsmanufacturedbyothersundertheirownbrand.
CompanyWebsite:
The company manufactures various dosage forms, which include tablets, capsules, eye/
ear drops, ointment and creams and dry syrups. They have an established product
marketing network covering both metro and minimetro cities, which enable them to
reach their existing and potential customers through their network of distributors and
dealersspreadacrossthecountry.
Syncom Healthcare Ltd is engaged in the manufacture, marketing and trade of

pharmaceutical formulations. The company manufactures a range of products such as
Ethical drugs, Generic drugs, over the counter drugs (OTC) and Herbal formulations in
variousdosageformsandmarketsthemunderthetrademark,Syncom.
Thecompanyalsoundertakescontractmanufacturingforlargevarietyofpharmaceutical
formulations for a number of other pharmaceutical companies of national and
international repute such as Lupin Ltd, Nicholas Piramal India Ltd, Galpha Laboratories
Ltd,PercosIndiaPvtLtdetc.(undertheirownbrands)locatedinIndia.
TABLE2PRICEPERFORMANCE
Price()
TradingVolume(Shares)
(yearlyavg.)
NSEMarketCap.(inCr.)
31stMay,
2016
29thMay,2015
30thMay,
2014
%Change
2016vs2015
2015vs2014
CAGRfor
2years
7.10
6.20
6.05
14.52%
2.48%
8.33%
4,33,637
2,31,042
16,555
87.69%
1295.58%
28.40
24.80
24.20
14.52%
2.48%
8.33%
SourceMoneyControl
StakeholdersEducation|CorporateGovernanceResearch|CorporateGovernanceScore|ProxyAdvisory
1|P A
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SYNCOMHEALTHCARELTD
TABLE3FINANCIALS
(Cr.)
NetWorth
CurrentAssets
NonCurrentAssets
TotalAssets
Investments
FinanceCost
LongTermLiabilities
CurrentLiabilities
Turnover
ProfitAfterTax(PAT,Cr.)
EPS()
2015
2014
2013
%Change
2015vs2014
2014vs2013
CAGRfor2
years
163.67
64.84
136.42
201.27
127.31
4.57
12.86
24.73
167.66
83.87
147.91
231.78
138.44
4.18
11.27
52.84
172.34
112.32
139.92
252.24
136.76
3.68
11.61
68.29
2.38%
22.69%
7.77%
13.16%
8.04%
9.33%
14.11%
53.20%
2.72%
25.33%
5.71%
8.11%
1.23%
13.59%
2.93%
22.62%
2.55%
24.02%
1.26%
10.67%
3.52%
11.44%
5.25%
39.82%
61.86
3.82
1.00
63.61
4.58
1.00
94.14
0.23

2.75%
N.A.
N.A.
32.43%
2091%
N.A
18.94%
N.A.
N.A.
SourceMoneyControl/AnnualReport
DiscussionasperCompany:
Discussion as per Annual Report FY 2015 During the year under review, the Company has earned a total income of
6,484.43Lacsasagainstthetotalincomeof6,667.46Lacsinthepreviousyear,therebyregisteringamarginalfallinturnover
by2.82%. The decline in sales ismainly on accountof lower demandof the products. Though there was a reduction in total
income,thelosseswerereducedforthebetterproductmixbearingbettermargins.TheincreaseintheamountofDepreciation
isforthereasonsofchangeinthemethodofchargingthedepreciationonthebasisofremainingusefullifeasprescribedunder
Schedule II ofthe Companies Act,2013. The Company during theyearunder review has incurreda loss of 535.19 Lacsas
againstthelossof779.80Lacsinthepreviousyear.DuringtheyearunderreviewtheCompanyhasmadeexportsof95
Lacs(Previousyear75Lacs)andtheexportswillcontinuouslybeincreasedinthesubsequentyears.
DiscussionasperAnnualReportFY2014Duringtheyearunderreview,theCompanyhasearnedatotalincomeof6,667.46
Lacsasagainstthetotalincomeof9,656.17Lacsinthepreviousyear,therebyregisteringfallinturnoverby30.95%.The
declineinsalesismainlyduetodeclineinthetradingsales.TheCompanyduringtheyearunderreviewhasincurredalossof
779.80Lacsasagainsttheprofitof21.24Lacsinthepreviousyear.TheCompanyduringtheyearunderreviewhasadded
onenewmarketingsegmentnamedSyncomWellnessadirectMarketingsetup.TheCompanyhasincurredexpensesofapp.
300Lacsinthisaccounttowardsmarketingandsalaryexpensesfordevelopingthismarketsegment.Theimpactwillaccrue
fromnextyearonward.TheCompanyhasalsodevelopedtheExportmarketandincurredexpensesforsettinganddeveloping
themarketduringtheyear.DuringtheyearunderreviewtheCompanyhasmadeexportsof75Lacs(PreviousyearNIL)
andtheexportswillbeincreasedinthesubsequentyears.TheDepreciationisalsoincreasedby150Lacs.Asacumulative
effect,theCompanyhasincurredtheabovelosses.However,withtheopeningofthenewavenueslikeSyncomWellnesssetup
andExportmarkettheCompanywillturnbackwithbetterresults.
2|P A
GE
SYNCOMHEALTHCARELTD
AUDITQUALIFICATIONS
AuditQualificationsinlast3years:TheAuditorhasraisedbelowqualificationsforlastthreeyears.
As per Annual Report FY 201415 (These Qualifications are appearing since last three years) Auditor draw attention to
following:Note27(1)(a)QualificationbytheAuditorsaboutthenonprovisionsandnonpaymentoftheprovidentfundon
certainpaymentsmadethroughcontractors.
Note27(2)(b)QualificationbytheAuditorsaboutthenonpaymentofservicetaxliabilityunderreversechargeof32.75
Lacs.
As per Annual Report FY 201314 Auditor draw attention to following: Note 1 (B) (i) (1): (a) Qualification by the Auditors
aboutprovisionsforleaveencashment.(b)QualificationbytheAuditorsaboutprovisionofthegratuity.(c)Qualificationbythe
Auditors about non provision and nonpayment of interest of 41510/ on late payment of TDS. (d) Qualification by the
Auditorsaboutnonpaymentoftheprofessionaltaxof22958/whichwasoverdueformorethan6months.
Firstoftheaboveisrepetitive&secondisappearingsecondtimeduringtheyear.
ManagementResponse:
TheboardreviewsaidinAnnualReportFY201415(a)liabilityhasnotbeenprovidedfortheprovidentfundoncertain
labourpaymenttothecontractors.Themanagementhasdeterminedthatthepaymentsareinexcessofthelimitsprescribed
forPFandthusthereisnoliability.b)ServiceTaxliabilityof32.74Lacsnotpaidfor.Themanagementisoftheviewthatthe
servicetaxunderreversechargeisnotapplicableontheseservices,thus,thoughprovisionsmadebutnotpaid.
TheboardreviewsaidinAnnualReportFY201314(a)Thecompanyismakingtheprovisionsforleaveencashmentonthe
available credit balanceof the leaves in the individual employees accountasonthedate of balance sheet. (b) The company
makingprovisionforgratuityfortheemployeeseligibleforgratuityasonthebalancesheetdate.TheActuarialValuationhas
notbeencarriedoutinabsenceofthequalifiedvaluerintheregion.However,CompanywillarrangetheActuarialBasisinthe
currentfinancialyearsonwards.(d)ThecompanyhaspaidinterestonamountofthelatepaymentoftheTDS.(e)Thecompany
hasmadethepaymentoftheprofessionaltaxinJuly,2014.
Response
FrequencyofQualifications
TheAuditorhasraisedqualificationsforlastthreeyears.
Havetheauditorsmadeanyadverseremarkin
last3years?
Comment
No
Are the material accounts audited by the

PrincipalAuditors?
No
Do the financial statements include material

unauditedfinancialstatements?
No
Theproportionofabove50%assets&revenueasperthe
consolidated accounts, which have not been audited by
statutory Auditors represent significant amount of the
total assets & revenue. Unless a material portion is
audited by Auditors giving audit report on consolidated
accounts, in accordance with Guidelines of Institute of
Chartered Accountants of India, the certifying Auditors
cannotbecalledaPrincipalAuditors.
3|P A
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SYNCOMHEALTHCARELTD
TABLE4:BOARDPROFILE(Ason31stMarch,2015)
%ofIndependentDirectorsontheBoard
%ofPromoterDirectorsontheBoard
NumberofWomenDirectorsontheBoard
ClassificationofChairmanoftheBoard
IsthepostofChairmanandMD/CEOheldbythesameperson?
AverageattendanceofDirectorsintheBoardmeetings(%)
RegulatoryNorms
50%
Atleast1
Company
50%
25%
1
ExecutivePromoterDirector
Yes
93.33%
SourceMoneyControl/AnnualReport
Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%
IndependentDirectorsastheChairmanoftheBoardisaPromoterExecutiveDirector.TheCompanyason31stMarch,2015
has50%ofIndependentDirectorsandhence,itmeetstheregulatoryrequirements.
BoardDiversity:TheCompanyhas4directorsoutofwhich3aremaleand1isfemale.TheCompanyiscompliantasperClause
17oftheListingRegulations,2015regardingtherequirementofatleastonewomandirector.
HoldingofpositionofMD/CEO&Chairmanbysameperson:TheCompanyhasappointedMr.AjayBankdaastheChairman
and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the
Companyisnotagoodgovernancepracticeasthismayleadtoconcentrationofpowerinasingleperson.
TABLE5FINANCIALRATIOS
TradingRatios
Solvency
Ratios
Liquidity
Ratios
ReturnRatios
Turnover
Ratios
Ratios
2015
InventoryTurnover
DebtorsTurnover
FixedassetTurnover
CurrentAssetTurnover
OperatingProfitMargin
NetProfitMargin
ReturnonAssets(ROA)
ReturnonEquity(ROE)
ReturnonCapitalEmployed(ROCE)
CurrentRatio
QuickRatio
CashRatio
WorkingCapitalTurnoverratio
2014
2013
%Change
2015vs2014 2014vs2013
10.79%
7.86%
61.06%
1.78%
5.44%
36.08%
25.79%
9.51%
N.A.
5596.98%
N.A.
3047.04%
N.A.
2267.08%
N.A.
2146.89%
N.A.
N.A.
65.19%
3.50%
53.65%
0.23%
92.87%
34.70%
24.77%
4.12%
4.65
2.33
0.45
0.95
8.65%
6.18%
1.90%
2.33%
N.A.
2.62
2.08
1.01
1.54
5.21
1.45
0.43
0.76
12.26%
7.20%
1.98%
2.73%
N.A.
1.59
1.36
0.52
2.05
4.83
1.42
0.67
0.84
0.22%
0.24%
0.09%
0.13%
5.50%
1.64
1.36
0.39
2.14
Debttoequityratio
0.17
0.21
0.18
21.28%
20.25%
InterestCoverageRatio
N.A.
N.A.
1.06
N.A.
N.A.
0.48
0.18
N.A.
2,963.43
4,28,556
90,86,748
7,371
1,232.77
21.20
0.47
0.18
N.A.
3.18
2,35,596
24,06,932
7,326
328.55
10.22
0.32
0.17
129.04
15.60
7,424
3,04,631
5
60,926.20
41.03
2.83%
2.44%
N.A.
N.A.
81.90%
277.52%
0.61%
275.22%
107.54%
48.00%
2.79%
N.A.
120.42%
3073.47%
690.11%
146420.00%
99.46%
75.10%
MarketCap/Sales
MarketCap/NetWorth
MarketCap/PAT
MarketCap/EBITDA
TradingVolume(shares)(avg.of1year)
TradingVolume(shares)(highin1year)
TradingVolume(shares)(lowin1year)
RatioHigh/lowtradingvolume
RatioHigh/averagetradingvolume
SourceMoneyControl
4|P A
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SYNCOMHEALTHCARELTD
TABLE6(A):OWNERSHIP&MANAGEMENTRISKS
Dec'2015
Dec'2014
Dec'2013
25.00%
24.88%
24.88%
9.88%
6.20%
58.94%
44.74%
6.18
24.18
Promotershareholding
Shareholding
PublicInstitutional
shareholding
PublicOthers
shareholding
NonPromoterNonPublic
Shareholding
Comments
Theshareholdingofpublicinstitutionincreasedfrom
6.20% to 9.88% during the period from Dec 13 to
Dec 2015 and that of public others increased from
6.20% 27.24% to 62.82% during the same period.
The shareholding of nonpromoter nonpublic
decreased from 41.68% to 6.18% during the above
27.24% mentioned period due to reclassification of the
shareholders as per the SEBI circular dated 30th
41.68 November,2015. The promoters have not pledged
anyshares
TABLE6(B):OWNERSHIP&MANAGEMENTRISKS
MarketActivityofPromoters
Preferentialissueto
promoters
Preferentialissuetoothers
GDRsissuedbytheCompany
IssueofESOPs/Issueofshares
otherthanPreferential
allotment
ThePromotersoftheCompanybought sharesinthesecondarymarket1time inthreeyears.

Total number of shares purchased by promoter and promoter group during the threeyear
periodis48,463.
Nopreferentialissueofshareswasmadetothepromotersinlastthreeyears
Nopreferentialissueofshareswasmadetoothershareholdersduringlastthreeyears
TheCompanydidnotissueandGDRsduringlastone/two/threeyears
TheCompanydidnotissueanysharestotheemployeesunderitsESOPSchemeinlastthree
years
SourceAnnualReport
5|P A
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SYNCOMHEALTHCARELTD
Glossary
Equity:TheequitysharescapitaloftheCompany
NetWorth:TheamountbywhichtheAssetsexceedstheliabilitiesexcludingshareholdersfundsoftheCompany
Turnover:TherevenueearnedfromtheoperationsoftheCompany
EPS:EarningPerShareisnetprofitearnedbytheCompanypershare
Profit After Tax
Number of outstanding shares

P/Eratio:ItistheratiooftheCompanyssharepricetoearningspershareoftheCompany
Price of each share
Earnings per share
CurrentAssets:Cashandotherassetsthatareexpectedtobeconvertedtocashinoneyear
FixedAssets:assetswhicharepurchasedforlongtermuseandarenotlikelytobeconvertedquicklyintocash,suchasland,
buildings,andequipment
TotalAssets:CurrentAssets+FixedAssets
Investments:Aninvestmentisanassetoritemthatispurchasedwiththehopethatitwillgenerateincomeorappreciateinthe
future.
FinanceCost:TheFinancingCost(FC),alsoknownastheCostofFinances(COF),isthecostandinterestandothercharges
incurredduringtheyearinrelationtoborrowedmoney.
LongTermLiabilities:Longtermliabilitiesareliabilitieswithamaturityperiodofoveroneyear.
CurrentLiabilities:Acompany'sdebtsorobligationsthatareduewithinoneyear.
InventoryTurnoverratio:InventoryTurnoverisaratioshowinghowmanytimesacompany'sinventoryissoldandreplacedover
aperiod.

Sales Turnover
Inventory
DebtorsTurnover:Accountsreceivableturnoverisanefficiencyratiooractivityratiothatmeasureshowmanytimesabusiness
canturnitsaccountsreceivableintocashduringaperiod

Sales Turnover
Accounts recievables
FixedAssetTurnover:Thefixedassetturnoverratioisafinancialratioofnetsalestofixedassets

Sales Turnover
Fixed Assets
CurrentAssetTurnover:Thecurrentassetturnoverratioisafinancialratioofnetsalestofixedassets

Sales Turnover
Current Assets
6|P A
GE
SYNCOMHEALTHCARELTD
OperatingProfitMargin:OperatingmarginisameasurementofwhatproportionofaCompanysrevenueisleftoverafter
payingforvariablecostsofproductionsuchaswages,rawmaterialsetc.ItcanbecalculatedbydividingaCompanysoperating
income(alsoknownasoperatingprofit)duringagivenperiodbyitssalesduringthesameperiod.

Operating profit
Sales Turnover
NetProfitMargin:Netprofitmarginisthepercentageofrevenueleftafterallexpenseshavebeendeductedfromsales

Net profit
Sales Turnover
ReturnonAssets:ROAtellsyouwhatearningsweregeneratedfrominvestedcapital(assets)

Net profit
Total Assets
Returnonequity/networth:returnonequity(ROE)istheamountofnetincomereturnedasapercentageofshareholders
equity.

Net profit
Net worth
ReturnonCapitalEmployed:Returnoncapitalemployed(ROCE)isafinancialratiothatmeasuresacompany'sprofitability
andtheefficiencywithwhichitscapitalisemployed.

Net profit
Equity share capital
Total Debt
Currentratio:Thecurrentratioisafinancialratiothatmeasureswhetherornotafirmhasenoughresourcestopayitsdebts
overthenext12months.Itcomparesafirm'scurrentassetstoitscurrentliabilities.
Current Assets
Current Liabilities
Quickratio:ThequickratioisameasureofhowwellaCompanycanmeetitsshorttermfinancialliabilities.
Current Assets Inventories
Current Liabilities
Cashratio:TheratiooftheliquidassetsofaCompanytoitscurrentliabilities.
Current Assets
Inventories Account Recievables
Current Liabilities
WorkingCapitalTurnoverratio:Theworkingcapitalturnoverratioisalsoreferredtoasnetsalestoworkingcapital.Itindicatesa
Company'seffectivenessinusingitsworkingcapital.

Current Assets
Current Liabilities
Debt to Equity ratio: Thedebttoequity ratio(D/E) is a financialratioindicating the relative proportion of

shareholders'equityanddebtusedtofinanceacompany'sassets.

InterestCoverageratio:TheInterestcoverageratioisadebtratioandprofitabilityratiousedtodeterminehoweasilya
Companycanpayinterestonoutstandingdebt.

7|P A
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SYNCOMHEALTHCARELTD
MarketCap/Salesratio:MarketCap/salesratio,Pricesalesratio,P/Sratio,orPSR,isavaluationmetricforstocks.Itiscalculated
bydividingthecompany'smarketcapbytherevenueinthemostrecentyear;or,equivalently,dividethepersharestockpriceby
thepersharerevenue.

/

MarketCap/NetWorthratio:ItisavaluationratiocalculatedbydividingCompanysmarketcaptonetworth.

/

MarketCap/PATratio:ItisavaluationratiocalculatedbydividingCompanysmarketcaptonetprofit.

/

MarketCap/EBITDAratio:ItisavaluationratiocalculatedbydividingCompanysmarketcaptoEBITDA.

TradingVolume(shares)(avg.of1year):Averagenumberofshares/daytradedin1year
Tradingvolume(shares)(highin1year):Highestnumberofshares/daytradedin1year
Tradingvolume(shares)(minimumin1year):Lowestnumberofsharestradedonanyonedayin1year
8|P A
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SYNCOMHEALTHCARELTD
DISCLAIMER
Sources
CompanyInforma on
Only publicly available data has been used while making the factsheet. Our
datasourcesinclude:BSE,NSE,SEBI,Capitaline,Moneycontrol,Businessweek,
Reuters,AnnualReports,IPODocumentsandCompanyWebsite.
AnalystCer ca on
The analysts involved in development of this factsheet certify that nopart of

SEBIReg.No.INH000000016
any of the research analysts compensation was, is, or will be directly or
indirectlyrelatedtothecontentsofthisfactsheet.
Thisfactsheetoranyportionhereofmaynot
be reprinted, sold, reproduced or
Disclaimer
redistributedwithoutthewrittenconsentof
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anyapproval,expressorimplied,fromanyauthority,norisitrequiredtohave
suchapproval.Theusersarestronglyadvisedtoexerciseduediligencewhile
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Thisfactsheetinnomannerconstitutesanoffer,solicitationoradvicetobuyor
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coveredinthisfactsheetexceptwhatisdisclosedonitswebsite.Thefactsheet
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AlldisputessubjecttojurisdictionofHighCourtofBombay,Mumbai.
ContactInforma on
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ResearchAnalyst:KirtiDhokiya
9|P A
GE

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SYNCOMHEALTHCARELTD

STAKEHOLDERS EMPOWERMENT SERVICES

Syncom Healthcare Ltd is engaged in the manufacture, marketing and trade of

STAKEHOLDERS EMPOWERMENT SERVICES

STAKEHOLDERS EMPOWERMENT SERVICES

Are the material accounts audited by the

Do the financial statements include material

STAKEHOLDERS EMPOWERMENT SERVICES

STAKEHOLDERS EMPOWERMENT SERVICES

ThePromotersoftheCompanybought sharesinthesecondarymarket1time inthreeyears.

STAKEHOLDERS EMPOWERMENT SERVICES

Number of outstanding shares

Earnings per share

STAKEHOLDERS EMPOWERMENT SERVICES

Equity share capital

Inventories Account Recievables

Debt to Equity ratio: Thedebttoequity ratio(D/E) is a financialratioindicating the relative proportion of

STAKEHOLDERS EMPOWERMENT SERVICES

STAKEHOLDERS EMPOWERMENT SERVICES

The analysts involved in development of this factsheet certify that nopart of

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