**Hanman Fit Limited** (formerly known as **Powerhouse Gym & Wellness Limited** and **Powerhouse Fitness and Realty Limited**) is an Indian fitness and wellness enterprise listed on the **BSE SME IPO Platform** since **October 21, 2014**. Headquartered in **Vile Parle (West), Mumbai**, the company is currently navigating a critical transition period as it seeks to revive its core operations following significant systemic disruptions. --- ### **Core Service Portfolio & Value Proposition** The company operates exclusively within a **single business segment**: the gymming and wellness industry. Its value proposition is built around a "world-class gymming experience" facilitated by professional trainers. The service architecture is diversified to capture multiple touchpoints in the health and wellness journey: * **Core Fitness:** High-end gymnasium facilities and personalized training. * **Group Classes:** Specialized **Zumba** programs, **Aerobics**, and **Yoga** sessions. * **Wellness & Recovery:** Integrated **Spa and Massage** services alongside professional **Physiotherapy** solutions. * **Strategic USP:** A holistic approach that combines traditional fitness with medical wellness and relaxation services. --- ### **Financial Position & Balance Sheet Analysis** The company’s financial structure has undergone a period of contraction, characterized by a reduction in the total asset base and shifting liability profiles. **Comparative Standalone Financial Position:** | Metric (Standalone) | FY 2016-17 (Audited) | FY 2015-16 (Audited) | | :--- | :--- | :--- | | **Share Capital** | **₹ 6,90,00,000** | **₹ 6,90,00,000** | | **Total Shareholders' Funds** | **₹ 8,16,25,069** | **₹ 11,58,83,263** | | **Total Non-Current Liabilities** | **₹ 54,24,174** | **₹ 1,25,01,503** | | **Total Current Liabilities** | **₹ 2,37,17,878** | **₹ 1,93,31,413** | | **Total Equity and Liabilities** | **₹ 11,07,67,121** | **₹ 14,77,16,179** | | **Total Fixed Assets** | **₹ 5,91,96,295** | **₹ 7,07,29,933** | | **Total Current Assets** | **₹ 3,68,23,664** | **₹ 5,85,52,295** | | **Cash and Cash Equivalents** | **₹ 6,20,379** | **₹ 21,93,515** | **Key Observations:** * **Asset Contraction:** Total assets decreased by approximately **25%** year-on-year, falling from **₹ 14.77 Crore** to **₹ 11.08 Crore**. * **Liquidity Compression:** Current assets saw a sharp decline, driven by a reduction in **Inventories** (from **₹ 1.58 Crore** to **₹ 0.66 Crore**) and **Short-term loans and advances** (from **₹ 1.98 Crore** to **₹ 1.48 Crore**). * **Debt Management:** The company successfully reduced non-current liabilities by over **50%**, though current liabilities rose to **₹ 2.37 Crore**. --- ### **Recent Performance & Profitability Trends** Recent filings indicate a volatile earnings profile. While the company achieved a net profit in the **2023-24** fiscal year, it has since transitioned back into a loss-making position. | Metric | FY 2023-24 | FY 2024-25 | |:---|:---|:---| | **Total Income** | **Rs. 19.85 Lakhs** | Not specified (Loss incurred) | | **Net Profit/Loss** | **Rs. 66.55 Lakhs** (Profit) | **Loss incurred** | | **Dividend / Reserve Transfer** | **Nil** | **Nil** | As of **May 2025**, the company faces a significant financial hurdle with an **accumulated loss of ₹8.83 crore**. --- ### **Strategic Growth Initiatives & Marketing** To counter recent losses and brand erosion, management is focusing on two primary pillars: 1. **Marketing Expansion:** The company is establishing a dedicated **marketing team** specifically tasked with driving turnover growth and re-establishing brand presence in a competitive post-pandemic landscape. 2. **Operational Revival:** Efforts are underway to return gymnasium operations to pre-pandemic levels through improved service delivery and professional trainer engagement. 3. **Diversification:** Management is actively exploring **new business avenues** to supplement the core gymming segment and stabilize cash flows. --- ### **Governance & Internal Oversight** Hanman Fit Limited maintains a lean corporate structure with no subsidiaries, joint ventures, or associate companies as of **March 31, 2025**. * **Board Composition:** The board consists of **4 Directors**, comprising **2 Executive Directors** (including the Chairman) and **2 Non-Executive Independent Directors**. The board includes one **Woman Director**, ensuring compliance with gender diversity norms. * **Audit & Controls:** **M/s Himank Desai and Co.** serves as the Internal Auditors. They are responsible for overseeing operational efficiency, safeguarding company assets, and ensuring the adequacy of internal financial controls. --- ### **Risk Assessment & SWOT Analysis** The company’s outlook is currently defined by high-risk, high-recovery potential. **SWOT Analysis:** * **Strengths:** Strong internal teamwork and a determined management approach toward business revival. * **Weaknesses:** A **low equity base** and significant **accumulated losses (₹8.83 crore)**. * **Opportunities:** Leveraging the Indian Government’s "Healthy and Fit" initiatives and the rising middle-class demand for wellness. * **Threats:** Economic "vibrations" (fluctuations), changes in **Government policies**, and intense competition in the fitness sector. **Critical Risk Factors:** * **Going Concern Uncertainty:** Auditors have issued an **Emphasis of Matter** regarding the company's ability to continue as a going concern. This status is contingent upon the successful execution of the revival strategy. * **Legacy Pandemic Impact:** The core gymnasium business has struggled to recover fully from the **Covid-19 pandemic** disruptions. * **External Variables:** The business remains sensitive to global and Indian demand-supply conditions, pricing of finished goods, and potential labor or legal litigations. --- ### **Investor Summary** Hanman Fit Limited is currently a **turnaround candidate**. While it possesses a solid infrastructure and a diversified service model, its financial health is strained by accumulated losses and liquidity constraints. The investment thesis relies heavily on the management's ability to execute its **revival strategy**, successfully deploy its new **marketing team**, and potentially pivot into **new business avenues** to resolve the "going concern" uncertainty.