EXECUTIVE BRIEF

Date: January 29, 2020

SANCTIONING AUTHORITY: Chief Manager (BM)
Justification of Sanctioning Authority – We are in receipt of the Fresh Credit Proposal from M/s.
GYM NATION PINK, Proprietor Dr. Manas Gogoi with Proposed Loan Exposure of Rs. 18.00 Lacs
under CGTMSE Guarantee Cover. The Branch is headed by Scale IV and delegated power of Branch is
Rs 100.00 Lacs. The said account also forms Group Account with M/s. GYMNATION XPRESS having
Credit Exposure of Rs. 30.00 Lacs, hence overall Group Exposure comes to Rs. 48.00 Lacs, i.e within
the Group Delegated powers of SC IV, i.e. Rs. 200.00 Lacs.

Further total sanctioning of the Branch as on date in the Current FY 2020 is more than the cap of Rs.
400.00 Lacs (4 times sanctioning power of SC IV) and Regional Office vide Letter No.
RO/UPAS/CREDIT/2019-20/167, DT. 17/12/2019 has permitted Branch to accorded approval for further
lending. Hence the proposal is placed before Chief Manager (BM) for Sanction.

BORROWER’S PROFILE
NAME OF THE ACCOUNT : M/s. Gym Nation Pink
GROUP : Not a recognized group
ASSET CLASSIFICATION : New Account.

1 ACCOUNT WITH : Branch Zone

Dibrugarh Kolkata
i Constitution : Individual
ii Registration Number : 2935/2019-2020
iii Date of Incorporation/ Establishment : 16/07/2019
iv Registered Office : West Millan Nagar, Opposite Govt Boys
School, Dibrugarh
v Corporate Office : --
vi Factory/Worksite/ Godown : West Millan Nagar, Opposite Govt Boys
School, Dibrugarh est Millan Nagar, Dibrugarh
vii Dealing with us since : New Account
viii Date of Last Sanction /Renewal/ Review and : Not Applicable as it is a new account.
Sanctioning Authority
ix Modification after Last Sanction if any : Not Applicable as it is a new account.
ix Status of compliance of terms & conditions : Not Applicable as it is a new account.
of last sanction
x Market Perception : Not a Listed company
xi Market Capitalisation :

2 PRESENT PROPOSAL :
To sanction Fresh Term Loan of Rs. 17.30 Lacs for Purchase of Gym Equipments under
CGTMSE Guarantee Cover

2.a LIMITS RECOMMENDED : (Rs in Lacs)

Facility Limits Rate of Interest Margin
(Exist) (Prop) (Exist) (Prop) (Exist) (Prop)
25.80% for Overall Project and
Term Loan -- 17.30 -- RBLR+4.55 --
25.00% for Equipment

2.b POINTS WHERE RECOMMENDING AUTHORITY RECOMMENDATIONS NOT BEING

CONSIDERED BY CENTRAL OFFICE: NOT APPLICABLE

3 i Industry (As per BSR Code of RBI) : Service Sector

ii Line of Activity : Gym.
iii Facility Arrangements : Sole Banking
iv If Consortium, lead bank with share : Not Applicable
v Our Bank’s Share : 100%
vi Number of Banks in Cons/JLA/ Multiple Banking : Under Sole Banking

3.vi.a SHARING PATTERN: (Working Capital) – Not applicable as it is under Sole Banking

3.vi.b SHARING PATTERN: (Term Loan) – Not applicable as it is under Sole Banking

3 vii Asset classification with existing Banks as on (Existing accounts : N/Ap, as it is a new
and Takeover accounts) account

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 viii If take Over, whether all norms complied with Attached as : Not a takeover
Annexure account.
Ix If not complying; description of Deviation with Justification of Not applicable
acceptance
x Whether Large / Mid Corporate / SME / Agriculture? : SME-Service
Xi Whether Sensitive Sector: Real Estate / Capital Market / NBFC? : No
Xii Thrust Area/ Watch List/ Low Priority Thrust
xiii Provisioning requirement 0.25%
Xiv If NBG Required as per Loan Policy No

3.xiv.a: DETAILS OF NBG APPROVAL DATED,IF ANY: Not applicable

4 SHARE HOLDING PATTERN AS ON: 31-03-2019

i) Name of Promoters / Major share holders No. of Shares (Rs.) % Holding
ii) Promoters (Dr. Manas Gogoi) -- New Account 100%
iii) Total -- -- 100%
iv) Whether Pledged to any Bank/FI/Others No

Note – As per Personal Balance Sheet of Dr. Manas Gogoi as on 31.03.2019 his Capital amounts to Rs.
160.99 Lacs, which is satisfactory.

4.a INTERNAL RISK RATING

Overall Financial Business Management
Present Rating Based on Projected BS as on FY 2020 CBI 3 Not applicable under manual rating
Previous Rating Based on ABS as on FY 2019 Not applicable as it is a new account
Denoting High safety

4.b Reasons for Change in Rating, if any: Not applicable

4.d EXTERNAL RISK RATING- Not applicable

5. PRICING /COMMISSION/UPFRONT FEE/PROCESSING /OTHER CHARGES

Approval for pricing As per Rating /Policy Recommended by Branch
Rate of Interest
Term Loan RBLR+4.55 RBLR+4.55
Upfront Fees on Term Loan Upto Rs. 1.00 Cr – Nil Nil
Inspection Charges Rs. 1500/- Rs. 1500/-
Commitment Charges Not applicable for loan upto Rs. 5.00 Cr --
Renewal of Term Loan Not applicable for loan upto Rs. 5.00 Cr --
Revalidation of Sanction Not applicable for loan upto Rs. 1.00 Cr --
Prepayment Charges Prepayment Penalty @1% p.a. of the amount prepaid in all Term Loan
accounts of Rs.20 lac and above. However, such charges shall be
recovered in prorata basis for the un-expired contracted period only,
subject to a maximum of 2%.
Documentation Charges Nil for priority sector up to Rs. 50.00 Lacs Rs. Nil
CIR Charges Consumer CIR – Rs. 100/- per CIR Rs. 200/-
Commercial CIR – Rs. 1000/- per CIR Rs. 8000/-
CERSAI Charges As per actual invoice
Other Charges As per actual invoice

5.a Other Bank’s Pricing: Not applicable as the proposed loan is under Sole Banking

5.b Justification and Recommendations of Concession, if any, in Rate of Interest and Service Charges:
No concessions are proposed.

5.c MODIFICATIONS: Not applicable as it is a new account.

5.d DEVIATIONS FROM POLICY: Not any deviation to our Loan / MSME Policy

6 a BRIEF HISTORY : Dr. Manas Gogoi is medical professional and specialist in Diabetes. He is
also partner in M/s. Magpin Group along with his wife and mother. His father Dr. Grindra Nath
Gogoi is also a renowned medical professional in the city of Dibrugarh.

Dr. Manas Gogoi has already availed Term Loan of Rs. 1.80 Cr on 24/08/2011 from our Bank
for construction of M/s. Magpin Group complex and the said loan was fully discharged in

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 advance on 02/04/2016 with 29 EMIs remaining. The said complex has Polyclinic in the
Ground floor, SRL Laboratory (franchise unit) in the 1 st & 2nd Floor and GYM and Banquet in
the 3rd and 4th Floor. Since FY 2016, Dr. Manas Gogoi has shifted Banking from our Bank and
is associated with UBI & Syndicate Bank. As per the campaign of Central Office, we have met
Dr. Manas Gogoi on 01/07/2019 on Doctor’s Day and requested to re-associate with us for his
future Banking requirement.

On our visit, we have come to know that Dr. Manas Gogoi has ventured into GYM business
and has set up his own GYM Brand in the name of GYMNATION having its branch in
Bordoloi Avenue Road, Dibrugarh (4th Floor of Magpin Tower). With good membership
response from GYMNATION, Dr. Manas Gogoi to cater demand in other parts of Dibrugarh
has launched GYMNATION XTREME in the FY 2019 and its branch was set up in Old DC
Banglow Road, Lachit Nagar and another in Duliajan.

Now, to further expand the business, Dr. Manas Gogoi has launched another new GYM in the
Brand name of GYMNATION XPRESS at Boiragimoth, Dibrugarh on rental premises and the
was financed from our Branch with Term Loan of Rs. 30.00 Lacs. The GYM (Xpress) is
already operational and in just 2 months time it has approx 200 plus member.

Now, Dr. Gogoi has proposed to launch another new “Women Only” GYM in the Brand Name
of GYM NATION PINK at West Millan Nagar and has Proposed fresh Term Loan of Rs.
17.30 Lacs for purchase of Equipments. Marketing / hording of new GYM has already begin
and during the pre-inspection it was observed that civil work / electrification has already
completed and only GYM Equipments are to be installed at site.

It is worth noting that Dr. Manas Gogoi is a young entrepreneur and is an HNI category client.
His other major source of income is from his professional medical fees and also from share of
profit from M/s. Magpins Group (SRL Franchise)

6 b CONDUCT & OPERATIONS IN THE ACCOUNT SINCE LAST REVIEW – Not applicable
as it is a new account

6.c In case of review of existing term loans: Not applicable as it is a new account

6 d DETAILS OF CONSORTIUM MEETING HELD SINCE LAST REVIEW ,IMPORTANT

DECISIONS TAKEN ETC (New as well Existing Accounts):

6 e COMMENTS ON INSPECTION, DUE DILIGENCE AND MARKET REPORTS

Sr.N Item Views/Remarks
1 Pre-Inspection Inspection of GYMNATION, GYMNATION XPRESS,
Report GYMNATION XTREME, MAGPIN, SRL and GYM
NATION PINK were done and found to be satisfactory.
Inspection report attached. Pre-inspection of GYMNATION
XTREME, Duliajan conducted by B/o. Duliajan vide
inspection report dated 23-01-2020 and no irregularities were
reported therein.
2 Due Diligence As per Branch Manager’s Due Diligence Report dated 29-01-
Report by Branch 2020, market report on the borrower / guarantor is observed to
3 Market Reports on be satisfactory. Detailed report attached with the note for
the borrower perusal.
4 Confidential report Confidential Report of account has been called from United
from Banks Bank of India, State Bank of India, Syndicate Bank and HDFC
Bank vide our Letter dated 22-01-2020, however reply from
only Syndicate Bank is received confirming satisfactory . We
have also pursued account statement of all accounts since ab-
inito and have also verified 2 CIRs of Dr. Manas Gogoi and
his firms and no irregularities were observed. Repayment all
such loans are observed to be regular. Hence reports from
other Banks in view of above satisfactory documents are not
insisted upon.
5 CA /CS Due Not applicable in this account.
Diligence Report
7 TL under Joint Inspection by Branch officials of proposed project site
implementation was done on 02-01-2020 and is found to be satisfactory.
Inspection Report
9 Residence Done by Mr. Anil Sonowal on and is found to be satisfactory.

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 Verification Report
11 CIR Verification CIR of Proprietor / Guarantor / Sister concerns done from
CIBIL and CRIF and no irregularities observed. All reports
attached herewith.
12 Supplier GYM Equipments for M/s. GYMNATION PINK is proposed
Verification Report to be purchase from M/s. Bodyline Sport, Kolkata and supplier
verification has already been got done from B/o. Park Street,
Kolkata vide report dated 11-10-2019 while financing M/s.
GYMNATION XPRESS. In the verification report dated
11/10/2019, the chief manager has confirmed genuineness of
supplier and from the photographs sent, it clearly establishes
that supplier deals in Trading of GYM Equipment. Hence
satisfactory.

6.f. PARTNERS/PROMOTERS/BOARD OF DIRECTORS:

Name Residential Address Designation DIN PAN Aadhar Card No
Dr. Manas H.No. 219, Seujpur
Gogoi Road, Jalan Nagar, Proprietor -- AJQPG5491G 7712-7363-9402
Dibrugarh

6.g BRIEF PROFILE OF PROPRIETOR:

Dr. Manas Gogoi S/o. Dr. Girindra Nath Gogoi, age around 41 years hails from Doctor’s family
and is also actively involved in medical profession with expertise in Diabetics. Dr. Manas Gogoi
has ventured in GYM Business in the year 2016 and established his 1 st GYM with the Brand
name of GYMNATION. Since 2016 till date, he has expanded his GYM branches to 4
(GYMNATION, GYMNATION XPRESS, and 2 BRANCHES OF GYMNATION XTREME) and has
now proposed to open a new Branch in the name and brand of GYMNATION PINK at West
Millan Nagar.

7: OPERATIONAL RELATIONSHIP – Not applicable as it is a new account.

7.b DETAILS OF CROSS SELLING: We have re-associated with with Dr. Gogoi after discharge of
his Loan of Magpin Groups (April 2016) through Fresh Term Loan of M/s. GYM NATION
XPRESS (Sept 2019) and has now leveraged our relationship with him by canvassing another
Term Loan in the name of M/s. GYM NATION PINK. We shall also explore to takeover entire
business of GYM from UBI as per policy norms. Thereafter on discussion with Dr. Manas Gogoi
he informed that he is coming up with a Lodge Proposal at Paltan Bazar and will submit the
proposal in due course of time. Hence, there is ample score of cross selling with Dr. Gogoi.

(7.c) TOTAL INDEBTNESS AS ON 23-01-2020, Nil

(7 .d) POSITION OF ACCOUNT WITH US AS ON 23-01-2020, New Account.

(7.e)Details of Short Term Loan /Adhoc sanctioned during last 12 months by our Bank , if any. (Rs. In
Lacs) – None

Position of Account with other Banks:

(7.f) Term Loans from other Banks /FIs/Other Institution- (including Loans / CDs/ Corporate Loans,
Debentures etc. No loan in the name of M/s. GYMNATION XPRESS.
(7.g) Details of Working Capital limits under Consortium/JLA/MBA ( Amt in Lacs) – None
(7.h) Details of Working Capital limits outside Consortium/JLA, if any. ( Amt in Lacs) – None
(7.i) OPERATIONS IN THE ACCOUNT: None
(7.j) BILLS/LC/LG/Cheques - None
(7.k) Availment of limits: None

8.a Group Exposure (As on 23-01-2020) (Rs. in Lacs)

Name of the A/c Last Sanction Fund Based Non-Fund Based Total
Limit O/s. Limit O/s Limit O/s
1 M/s. Gym Nation Xpress 30-09-2019 30.00 28.83 -- -- 30.00 28.83
Conduct of the Group Accounts and Overdue Position, If Any: The Term Loan sanction stand
fully disbursed and end use of funds have also been verified wherein asset creation is satisfactory.
The Gym Nation Xpress is already operation and has approx 200 Plus members as on date.
Monthly installments as and when due is being paid and there is no sign of sickness observed in
the account. Hence satisfactory.

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Group Financials

1. M/s. Magpin Group (Rs. in Lacs)

S.No Particular FY 2017 FY 2018 FY 2019
1) Partner’s Capital 248.43 261.62 225.77
2) Un-Secured Loan 0.00 0.00 0.00
3) Fixed Assets 225.40 226.16 209.35
4) Current Assets 54.79 61.37 39.11
5) Current Liability 58.40 53.88 52.20
6) Non Current Assets 26.64 28.19 29.51
7) Long Term Liability 0.00 0.00 0.00
8) Receipts 413.35 480.02 556.79
9) PAT 131.92 160.41 165.95
10) Depreciation 26.02 27.50 26.62
11) Cash Accrual 157.94 187.91 192.57
B/S for the FY 2019 is yet to be finalized. The same shall be obtained in due course of time.

2. M/s. GYM NATION & M/S GYMNATION XTREME (CONSOLIDATED) (Rs. in Lacs)
S.No Particular FY 2017 FY 2018 FY 2019
1. Proprietor’s Capital 25.74 32.17 104.13
2. Un-Secured Loan 0.00 0.00 0.00
3. Fixed Assets 48.95 52.63 191.50
4. Current Assets 9.03 3.23 25.87
5. Current Liability 9.19 0.00 16.51
6. Non Current Assets 0.00 0.00 0.00
7. Long Term Liability 23.05 (loan under 23.69 96.73
disbursement)
8. Receipts 8.61 8.99 63.17
9. PAT 0.99 (2.61) 8.30
10. Depreciation 4.06 8.06 24.95
11. Cash Accrual 5.05 5.45 33.25

For the FY 2019, Dr. Manas Gogoi has submitted consolidated Balance sheet of his GYM Business which
had two Branches – GYMNATION and GYMNATION XTREME.

8.c Compliance of Prudential Cap: Central Office item

8.d EXPOSURE LIMITS ( INDUSTRY/EXPOSURE WISE)
i Type of Industry Gym
ii Cap fixed for the industry for ........... Central Office item
iii Existing Exposure as on Central Office item
Total Exposure including Proposed Exposure (Fresh/ Enhancement) Fresh Rs. 20.00 Lacs

8.e Unsecured exposure (Including Proposed) as at : Central Office item

Gross Bank Credit as at Rs Central Office item
Percentage: Central Office item

9 RISK ASSESSMENT:
I Status of Compliance of Terms of Sanction. Not applicable
ii Whether any of the Directors/Company/ Guarantor appearing in - (Give date of report)
Caution Advices circulated by the Bank: - No default observed
RBI’s Defaulter List - No, as per available report as on Sep 2017 (latest available on Intranet)
RBI’s Wilful defaulters list: - No, as per available report as on Sep 2017 (latest available on
Intranet)
Caution advice of ECGC/SAL – Not applicable as it is not an Export Account.

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 CIR Verification – As the proposed exposure is above Rs. 10.00 Lacs, so CIR of Proprietor /
Guarantor / Sister Concerns have been verified from two CIR agencies as detailed below

Dr. Manas Gogoi (Proprietor)

CIBIL vide Control No. 3,18,38,55,181 Dated 01-12-2019
CIBIL Credit Vision Score -767
CIBIL Personal Loan Score -690
CRIF vide CHM Ref #CENT191201CR703174280, Dated 01-12-2019
PERFORM CONSUMER 2.0 – 762
CRIF vide CHM Ref # CENT191201CR703174193, Dated 01-12-2019
PERFORM CONSUMER 2.0 – 728
Experian Reference Number (ERN): 1575955405500, Dated 10-12-2019
EXPERIAN CREDIT SCORE - 756

Following Commercial CIR are verified

1) M/s. Magpins Group vide CIBIL Report Order Number W-49604391, Dt 10-12-2019
2) M/s Gymnation vide CIBIL Report Order Number: W-49296652, Dated 01-12-2019
3) M/s. Gymnation Pink vide CIBIL Report Order Number: W-49296662, Dated 10-12-2019
4) M/s. Gymnation Xtreme, vide CIBIL Report Order Number: W-49296647, Dated 01-12-19
5) M/s. Gymnation Xpress, vide CIBIL Report Order No: W-49296644, Dated 01-12-2019
6) M/s. Gymnation vide Experian Reference Number (ERN): 1575956218087, 10/12/2019
7) M/s. Gymnation Xpress vide Experian Reference Number (ERN): 1575956063700
10/12/2019
8) M/s. Gymnation Xtreme vide Experian Reference Number (ERN): 1575956390014
10/12/2019
9) M/s. Gymnation Pink vide Experian Report Dated 10/12/2019, no record found.
10) M/s. Magpins Group vide CRIF Report CHM Ref # CENT191201CR703174959, Dated
01-12-2019
No irregularities / overdue observed in above Consumer and Commercial CIR reports. Hence
satisfactory.
CRILIC – Not applicable, as proposed exposure is less than Rs. 5.00 Cr
Central Fraud Registry – Not applicable in the account.
iii Compliance of KYC Norms Yes
iv Whether any of the Directors/Company is connected in the past with any Not so
NPA/One Time Settlement etc? observed
iv Whether any of the Directors is related to Directors/Senior Officers of Central Not so
Bank of India/Other Banks? observed
V Whether there has been any change in the Management since last sanction? No
Vi Whether there is any litigation initiated against the Borrower by any Not so
Bank/FI/Govt Agency etc.? observed
vii Whether account has been restructured in the past by the Bank/CDR or BIFR .If Not so
yes, present status viz-a-viz restructuring package approved ? observed
viii Whether the proposal is in conformity with RBI/FEMA Guidelines/Banks Loan Yes
Policy
ix Whether increase in investment in subsidiaries/affiliates is noticed. If yes, its No
impact on company’s liquidity position, return on such investment, necessity,
justification and when investment made is likely to be received back?
X Whether all Statutory permissions required under the law of the Land are in Yes
place? (Permissions/Approval pending should be mentioned here.) AND
Risk envisaged due to anticipated delay/delay in commissioning of Project.
Xi Group Risk (i.e. our total exposure to the Group should be discussed here and None
commented upon as to safety of Bank Funds etc.)
xii Product/Activity Risk Low
xiii Market Risk i.e acceptability of product manufactured by the Company Low
xiv Country risk in case Export Bills discounted without L/C N/Ap
xv In case of Export oriented accounts whether opinion on foreign buyer is N/Ap
obtained periodically from ECGC/MIRA Inform/Dun& Bradstreet
xvi Whether opinion report on the suppliers of raw material/P&M obtained in case N/Ap
of L/C opened by us on behalf of our Borrower?
xvii Whether Dun& Bradstreet or approved agency report obtained in case of finance N/Ap
to Joint Ventures abroad on the foreign JV Partner?
Xviii In case Company is engaged Export/Import, following information should be N/Ap
informed
Total Foreign Exchange exposure --
Out of which hedged position --

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 If un-hedged, how the borrower plans to cover it --
Xix Name of Auditor/ Audit Firm/ Membership No/ Firm Registration No and Greenfield
Address signed last and last but one Balance Sheet unit
Xx Last Audited Balance Sheet available if not reason thereof Greenfield
unit
xxi Auditor’s observations / adverse feature, as noticed in the Company’s last N/Ap
available audited accounts for the last year ended 31 st March__________
xxii Comments on Rectification of Deficiencies observed in: Internal / Concurrent N/Ap
/Statutory Auditor's Report/RBI Inspection/ Loan Review Reports/ Legal Audit

10. SECURITY((Mention whether Exclusive/1st /2nd /3rd Pari passu charge)

10.a PRIMARY SECURITY
Nature / Our Date of Valuation Insurance
Nature of Security
Description of share In & Name
Charge Value Amount Expiry Date
Security % of Valuer
Primary Security for Term Loan – Hypothecation of all present and
To be insured
future Equipment and Moveable Gross block of M/s. Gym Nation Pink
10.b COLLATERAL SECURITY
Nature / Nature of Security Our share Date of Valuation Insurance
Description of Charge Value In % & Name
Amount Expiry Date
Security of Valuer
1. CGTMSE Guarantee Cover for full exposure -- --
10.c Additional Security Proposed, If any: None

10.d PERSONAL/CORPORATE GUARANTEE: None

10.e FIXED ASSETS COVERAGE RATIO –TERM LOAN

Nature Existing Proposed

Primary -- Rs. 23.10 Lacs

Collateral (CGTMSE Guarantee cover with
-- Rs. 13.84 Lacs
80% coverage of Guarantee approved amount)
Total -- Rs. 36.94 Lacs
Term Loan -- Rs. 17.30 Lacs
FACR -- 2.14:1 Times

10.f ASSET COVERAGE RATIO: Total chargeable assets + value of collateral/total indebtedness
from the Banking system.
i Nature Existing Proposed

ii Primary -- Rs. 23.10 Lacs

iii Collateral (CGTMSE Guarantee cover
with 80% coverage of Guarantee -- Rs. 13.84 Lacs
approved amount)
iv Total -- Rs. 36.94 Lacs
v Working Capital -- 0.00
vi Term Loan -- Rs. 17.30 Lacs
vii Total -- Rs. 17.30 Lacs
viii ACR (iv/vii) -- 2.14:1 Times

10.g Reasons with justification

i Time period for Security Perfection Not applicable
ii Release of limits pending security creation. Not applicable
iii Release of limits on the basis of individual documents subject to Not applicable
NOC from Lead Bank
Iv Whether time for security Perfection was given, in last review/ Not applicable
sanction. If yes whether created within the extended period. If not,
whether additional interest was charged.

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v Waiver of pre-post shipment cover of ECGC Not applicable
Vi Waiver of insurance Not applicable
Vii Waiver of stock inspection etc, Not applicable

viii Date of inspection/verification of properties charged to us as prime/collateral 01-01-2020

security- (Pre-Sanction)
ix Comments on change in Prime/Collateral security /Guarantor, if any:- Not Applicable
X Status of creation of charge with ROC with date of creation Not Applicable
xi Whether Securities (Primary/ Collateral) created has been registered with the To be registered
Central Registry of Securitization Asset Reconstruction and Security Interest after sanction.
of India (CERSAI) as per guidelines

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9.15 Risk & Mitigating factors template, SWOT and Industry Scenario and comparison with
peer industries

Strength

1) Recognize Brand – GYM NATION is operating in the city Dibrugarh since last 3 years plus
and has sizeable number of members. Dr. Manas Gogoi has launched GYM NATION
XTREME, GYM NATAION XPRESS and now proposed as GYM NATION PINK
(exclusively for women only). Hence the Brand Name of GYM NATION will supplement
subscription to new GYM.

2) Business Expertise – Dr. Manas Gogoi is already having GYM as detailed above and is in
satisfactory operation since last 3 years plus. With past satisfactory GYM business
performance, Dr. Gogoi has proposed to expand in this line of business. Hence, this indicates
his ability to maintain business viability and steer the business through operational hurdles in
long run.

3) Collateral Coverage – The proposed exposure of Dr. Manas Gogoi shall be secured against
CGTMSE Guarantee Cover. Hence, with Guarantee cover, our Loan is adequately secured.
Further, there shall be no capital provisioning against the said loan.

4) Goodwill– Dr. Manas Gogoi carries satisfactory goodwill in the market and it is
supplemented by the name of his father – Dr. Girindra Nath Gogoi who is also a renowned
Doctor in the city of Dibrugarh.

5) Location – The proposed GYM will be situated at Millan Nagar and the area in its
catchment area of 3-5 KMs have no such standard GYM. Hence, this will cater the unmet
demand of area. Further, the GYM is proposed to be for “Women Only”, hence many women
who felt uncomfortable in unisex GYM can now join GYM NATION PINK.

6) Net Worth - Dr.Manas Gogoi has satisfactory worth and has filed ITR 2019 with total
income of Rs. 64.97 Lacs (inclusive of exempted income of Rs. 41.25 Lacs from M/s.
Magpins Group). Dr. Gogoi’s family owned partnership firm M/s. Magpins Group has
reported Net Profit of Rs. 165.95 Lacs (excluding Depreciation of Rs. 26.62 Lacs). Hence
with such source of income Dr. Gogoi falls in the category of High Net worth Individual.
Hence proposed loan of Rs. 17.30 Lacs against the scale of Dr. Manas Gogoi’s income seems
to be minuscule.

7) Growing Demand for Fitness - People are extremely focused on fitness and more and
more have started frequenting the GYM, hence to tap this opportunity Dr. Manas Gogoi has
proposed the expansion with GYM NATION PINK.

8) Qualified Trainers- Dr. Manas Gogoi has set of Qualified Trainers in existing GYM and
they will hire more such qualified trainers for his proposed new GYM

Risk Factors

1) Competition – In the city of Dibrugarh, the major competitor of GYMNATION, stands with
GOLD GYM which is also a well established premium brand. However GYM NATION
Brand has an advantage of having larger member base with lower subscription fees, which
on contrary GOLD GYM is having comparatively less members with premium cost. Hence,
as on date both GYMs operate with different set of target group. However any future
opening of similar GYM with modern Equipment might lead to lower cash flows of GYM
NATION Brand for which they need to upgrade the GYM at regular interval.

2) Substitution to GYM – With more modernization of lifestyle there is threat to GYM as

small fitness clubs are established in Apartment, Hotel, Colleges etc with no or very minimal
fees. However in the city Dibrugarh as on date, no such concept has shown its existence till
date except in some Apartments built by JSB which itself is a very micro segment. Hence
there seems to be no immediate such treat to GYM business.

Credit facilities- A/c . M/s. GYMNATION PINK Page 9 of 15

11 FINANCIAL INDICATORS: (Rs in Lacs)
FY 2020 FY 2021 FY 2022 FY 2023
Projection Projection Projection Projection
1 Paid-Up Capital 6.26 6.26 6.26 6.26
2 Reserves & Surplus 1.51 6.25 11.53 12.91
3 Intangible Assets 0.00 0.00 0.00 0.00
4 Tangible Net Worth 7.77 12.51 17.79 19.17
5 Adjusted TNW(4+7-11) 7.77 12.51 17.79 19.17
6 Long term Liabilities (Net of 7 below) 17.20 12.40 7.60 2.80
7 Unsecured loans from Promoters / family 0.00 0.00 0.00 0.00
8 Capital Employed(4)+(6)+(7) 24.97 24.91 25.39 21.97
9 Total Outside Liabilities 17.20 12.40 7.60 2.80
10 Net Block 22.45 19.11 16.27 13.85
11 Investments 0.00 0.00 0.00 0.00
12 Non-Current Assets 0.00 0.00 0.00 0.00
13 Current Assets 2.51 5.79 9.11 8.11
14 Current Liabilities 0.00 0.00 0.00 0.00
15 NWC 2.51 5.79 9.11 8.11
16 Net Sales/Revenues 19.20 43.20 48.00 48.00
% growth -- 1.25 0.11 0.00
17 Gross Profit 10.98 26.10 30.61 30.21
18 EBIDTA 6.24 18.05 20.45 19.47
19 Net Profit Before Tax 5.01 18.20 23.26 23.40
20 Net Profit After Tax 3.51 12.74 16.28 16.38
21 Depreciation 1.80 3.34 2.84 2.42
22 Cash Accruals 5.31 16.08 19.12 18.80
23 Long Term sources (8) 24.97 24.91 25.39 21.97
24 Long Term uses (10+11+12) 22.45 19.11 16.27 13.85
25 Surplus/Deficit (To tally with point 15) 2.52 5.80 9.12 8.12
27 Average DSCR (for proposed Term Loan) 3.86 Times

11.1 Key Financials up to last quarter – Not applicable as it is not a listed company

11.2 RATIOS FY 2021 FY 2022 FY 2023 FY 2024

Projection Projection Projection Projection
1. Current Ratio -- -- -- --
2. Debt/Equity Ratio 2.21 0.99 0.43 0.15
3. Debt/Equity Ratio ( quasi-equity as a part of 2.21 0.99 0.43 0.15
TNW)
4. TOL/TNW Ratio 2.21 0.99 0.43 0.15
5. TOL/TNW Ratio with unsecured loan as quasi 2.21 0.99 0.43 0.15
capital & included in Net Worth
6. Gross Profit margin % 57.19 60.42 63.77 62.94
7. Net Profit margin % 18.28 29.49 33.92 34.13
8. EBIDTA/DEBT % 36.28 145.56 269.08 695.36
9. FACR 2.14:1 Times
10. ACR 2.14:1 Times
11. Return on Equity % (PAT/Paid up capital)% 45.17 101.84 91.51 85.45
12. Return on Assets % (PAT/Total Assets) % 14.06 51.14 64.12 74.56
13. ROCE (PBDIT/CAP EMPD) 0.25 0.72 0.81 0.89
14. PBDIT/Interest (times) ICR 6.70 9.16 15.49 28.63
15. PAT/Operating Profit % 100.00 100.00 100.00 100.00

11.3 COMMENTS ON FINANCIAL INDICATORS:

i TNW TNW of the firm represent capital of Dr. Manas Gogoi infused in the
proposed GYM project and accrual of profit in the projected year. As per
the project report submitted against the total project cost of Rs.24.26 Lacs,
promoter’s margin is Rs. 6.96 Lacs. It is worth noting that as per Personal
Balance Sheet of Dr. Manas Gogoi as on 31.03.2019, he maintains Capital
balance of Rs. 1.61 Cr, hence sourcing of proposed capital of Rs. 6.96
Lacs for the proposed GYM project is easily tied up.

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ii Long Term Loans Dr. Manas Gogoi has proposed for Term Loan of Rs. 18.00 Lacs for
purchase of GYM Equipment and other electronic item wherein margin
contribution is 25%. The said loan is proposed to be repaid in 5 years
starting from February 2020. However, Loan is recommended for
purchase of GYM Equipment only and accordingly eligible loan amount
comes to Rs. 17.30 Lacs. Hence, the loan is projected to be reducing by
repayment.
iii Net Block As the proposed GYM is Greenfield in nature, hence with the
disbursement of term loan and infusion of promoter margin, Gross Block
of the firm has increased and the same with the application of
depreciation, net block is proposed to be reduced.
iv Investments None
v Non-Current Assets None
vi NWC NWC of the firm is proposed to be maintained at satisfactory level, which
shows adequate liquidity from business operation of GYM.
vii Net Sales Dr. Manas Gogoi has ventured in the line of GYM Business since 2016
and as on date is operating 4 Branches of GYM (GYMNATION,
XPRESS, XTREME) of which 3 are in Dibrugarh and 1 in Duliajan. Dr.
Manas Gogoi from his existing GYMs have around 2500-3000 Members
(floating) which is reflected from the credit summations in Current
Account of GYM NATION and GYM NATION XTREME maintained
with Union Bank of India. Further, we have recently sanctioned
GYMNATION XPRESS in the month of September 2019 and during the
course of inspection, it was observed that the GYM has around 200+
members in just 1 month of its operation (achievement of 50% of target
membership in just one month). Also It is informed by Dr. Gogoi that
majority of GYM members are paying monthly fees in cash which is not
reflected in account statement. As on date Dr. Manas Gogoi is charging
Rs. 1000/- per member per month and based on P&L for the FY 2019, Dr.
Manas Gogoi has reported Gross Receipt of Rs. 63.17 Lacs and Net Profit
of Rs. 8.30 Lacs (excluding depreciation Rs. 24.95 Lacs) from the
business operation of GYM NATION & GYM NATION XTREME.

Now, on similar line, Dr. Manas Gogoi has proposed income @ Rs. 1000/-
per member with average member during a month of 400 in
GYMNATION PINK. Hence monthly receipt with 100% capacity
utilization shall be Rs. 400,000/- and per annum receipt shall be Rs.
48,00,000/-. Dr. Gogoi has proposed capacity utilization @ 40%, 90% and
100% for the first 3 years of operation. In view of satisfactory operations
in existing GYMs of Dr. Gogoi, the receipt from proposed GYM seems to
be realistic and achievable.
viii PAT Satisfactory.
ix Current Ratio As Dr. Gogoi has not proposed CC / OD Limit in the project, hence
Current Ratio in the proposed Term Loan is not applicable. The firm has
sufficient cash flows from business operation to meet proposed term loan
liability, hence satisfactory
x Debt/Equity Ratio Satisfactory and within the benchmark ratio.
xi TOL/TNW Ratio Satisfactory and within the benchmark ratio.
xii ACR Satisfactory and within the benchmark ratio.
xiii FACR Satisfactory and within the benchmark ratio.
xiv Interest Coverage Satisfactory and within the benchmark ratio.
Ratio
xv Others Satisfactory

11.4 DETAILS OF OTHER CURRENT ASSETS (OCA) – Satisfactory

DETAILS OF OTHER CURRENT LIABILITIES (OCL) – Satisfactory

11.5 BUILD UP OF NWC (Rs. in Lacs)

AS ON FY 2022 FY 2023 FY 2024
Projection Projection Projection
i Opening NWC 2.51 5.79 9.11
ii + Long Term Sources -0.06 0.48 -3.42
iii - Long Term Users -3.34 -2.84 -2.42
iv Surplus/Deficit 3.28 3.32 -1.00
v Closing NWC 5.79 9.11 8.11

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11.6 MOVEMENT ON TNW
AS ON FY 2022 FY 2023 FY 2024
Projection Projection Projection
i Opening TNW 7.77 12.51 17.79
ii +Increase in paid up capital/Share application money 0.00 0.00 0.00
iii Increase Decrease in Reserves (Excl. Revaluation Reserves) 4.74 5.28 1.38
iv -Debit balance in PL, if any 0.00 0.00 0.00
v Closing TNW 12.51 17.79 19.17
vi Less Intangibles Assets 0.00 0.00 0.00
vii Less investment in affiliates/
0.00 0.00 0.00
Subsidiaries etc
viii Adjusted TNW 12.51 17.79 19.17

11.7 STATUTORY DUES AND OTHER CONTIGENT LIABILITIES – None

12.a ASSESSMENT OF WORKING CAPITAL LIMITS: Not applied.

12.i ASSESSMENT OF LETTER OF CREDIT LIMIT for Working Capital Purpose: Not applied.

12.k JUSTIFICATION OF PROPOSED WORKING CAPITAL LIMITS: Not applied.

12.1 ASSESSMENT AND JUSTIFICATION OF NON FUND BASED LIMITS: Not applied.

12.3 REVIEW OF EXISTING TERM LOAN: Not applicable

12.4 REVIEW TERM LOAN (PROJECT UNDER IMPLEMENTATION) Not applicable

12.5 FRESH TERM LOAN POPOSAL:

12.5 Purpose: For purchase of new Equipment for Gym (M/s. Gym Nation Pink)
(a)
12.5 About the project : Dr. Manas Gogoi, has proposed to set up new GYM in the Brand name of
(b) GYMNATION PINK (for Women only) at West Millan Nagar, Dibrugarh. The said GYM is on
rental premises and Rent Agreement has already been executed by Dr. Manas Gogoi on 12-07-
2019 valid for 15 Years.

During the course of inspection, it was observed that all the interior and electric work has been
completed by Dr. Manas Gogoi from his own sources and the GYM has sufficient electric
connection and only installation of GYM Equipment is pending for which Loan from our Bank
is sought.

Dr. Manas Gogoi has satisfactory experience in GYM line of industry as he is already running 4
GYMs in the name of M/s. GYMNATION (one Branch), M/s. GYMNATION XTREME (two
Branches at Dibrugarh and Duliajan each) and M/s. GYMNATION XPRESS (one Branch) with
this proposed new Gym he shall have 5th GYM.

Publicity and hording for launch of new GYM (PINK) is already been undertaken by the
Proprietor and during our pre-inspection, we have been informed by the receptionist that pre-
launch discount offer for membership scheme is announced and they are getting good response

12.5 Need for the project (in case of expansion project- existing capacity utilization etc.) – Not
(c) applicable as it is not an existing unit with expansion project.

12.d Project Information Memorandum (PIM) by: Dr. Manas Gogoi

Loan syndicated by: Sole Banking
Cost of Project Rs. 24.26 Lacs Total Debt Rs. 17.30 Lacs
Term Loan from our Bank Rs. 17.30 Lacs DE Ratio 2.49 Times
Our Share 100% Loan Tie up status Sole Banking
Average DSCR 3.86 Times
Minimum DSCR 2.67 Times
Maximum DSCR 6.39 Times
Rate of interest RBLR+4.55 IRR N/Ap Margin Project - 25.80%
Equipment – 25%

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Arriving of Proposed Loan from Total Project Cost
S.No Rate as per Promoter
Particular of Supplier and item Bank Finance
Quotation Contribution
1. Gym Equipment from M/s.
Rs. 23,09,606/- Rs. 17,30,000/- Rs. 579606/-
Bodyline Sports
2. Electrification Rs. 56,200 Nil Rs. 56,200
3. Furniture & Fixture Rs. 60,000 Nil Rs. 60,000
Total Project Cost Rs. 24,25,806/- Rs. 17,30,000/- Rs. 695,806/-
Bank finance is allowed only against the GYM Equipment with Promoter margin contribution of 25%,
and other cost of project like, electrification and Furniture is to be tied up with Promoter margin of 100%.
Hence Bank’s overall margin comes to 25.80% and for GYM Equipment finance margin comes to 25%.

12.5 (e) Gist of T E V Study & its conclusion – Not applicable as proposed exposure is less than Rs.
5.00 Crores
12.5 (f) Summary of Cost of Project & Means of Finance: (Rs. in Lacs)
Cost of Project
Particulars Amount Raised Up to 23/01/2020
i Civil Construction 0.00 --
ii GYM Equipments 23.10 5.00
iii Electrification 0.56 --
iv Furniture & Fixtures 0.60 --
Total 24.26 5.00
Means of Finance
Particulars Amount Raised Up to 23/01/2020
i Promoter Equity 6.96 5.00
ii Bank Loan 17.30 --
iii TOTAL 24.26 5.00

12.5 Source of promoter’s contribution, upfront contribution to be brought and the time schedule for
(g) the remaining contribution.

Promoter Margin – The projection for the project requires margin of Rs. 6.96 Lacs, out of which
Rs. 5.80 Lacs is margin contribution for purchase of GYM Equipment. Dr. Gogoi shall purchase
other furniture and fixture, Electrification etc from balance amount of Rs. 1.16 Lacs. As per
Balance Sheet for the year 2019, Dr. Manas Gogoi has a capital balance of Rs. 160.99 Lacs which
is sufficient to meet the proposed residual GYM Margin Cost of Rs. 1.96 Lacs.

Upfront Contribution – Entire payment for Bodyline inclusive of promoter margin contribution
shall be paid in one go. Hence 100% residual Promoter margin for Equipment purchase shall be
paid up fronts with the disbursement of loan.

12.5 Brief about major items of cost of project, reputation of suppliers, availability of performance
(h) guarantee from suppliers, EPC contract etc. along with comments on the technology used.

The GYM Equipment is proposed to be purchased from M/s. Bodyline Sports, Kolkata and Dr.
Manas Gogoi has informed of having purchased all Equipment of his existing GYM from the
same firm since the inception of his GYM. We have verified the credentials of M/s. Bodyline
Sports online and observe the said firm having its website bodylinefitness.net and is also listed
with E-commerce company like Justdial.com, indiamart.com, sulekha.com etc. Also Supplier
Verification of M/s. Bodyline Sport has been assigned to Park Street Branch (at the time of
financing M/s. Gymnation Xpress) through ZO Kolkata and vide B/o. Park Street report
dated 11/10/2019 the Chief Manager has confirmed genuineness of supplier and from the
photographs submitted it is confirmed that the supplier – M/s. Bodyline Sports deals in
Trading of GYM Equipment. Hence satisfactory. As per quotation supplied by the firm it offers
standard warranty and free maintenance and service for 12 months.

12.5 Comments in brief on aspects like locational advantage, availability of infrastructure facilities. –
(i) The GYM of Dr. Manas Gogoi is proposed to be set up at West Millan Nagar in the 1 st floor of
commercial building. The said GYM is launched to cater the demand of the area and will have all
modern equipments. The proposed GYM Site is well connected with road and has ample parking
facility for member.

12.5. (j) LC/NFB Limit as sub limit of Term Loan: Not any proposed.

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12.5 (k) Status of various statutory approvals and clearances. – No approval or clearances required. Dr.
Manas Gogoi is already having Trade License in the name of M/s. GYM NATION PINK.

12.5 (l) Implementation schedule.

Activity Starting Date Completion Date
i Civil work September 2019 Already completed
ii Electrification November 2019 Already completed
iii GYM Equipments January 2020 Within 7-10 Days from disbursement
iv Commencement of GYM -- Within 15 Days from full payment

12.5 (m) Draw Down Schedule Quarter wise – Full loan amount to be disbursed in one bullet with
Prop margin directly in favour of M/s. Bodyline Sports for purchase of GYM Equipment.

12.5 (n) Working of DSCR, with brief comments thereon and comments on assumptions underlined
sales/profitability projections: Dr. Manas Gogoi has proposed income @ Rs. 1000/- per
member with average member during a month of 400. Hence monthly receipt with 100%
capacity utilization shall be Rs. 400,000/- and per annum receipt shall be Rs. 48,00,000/-.
Dr. Gogoi has proposed capacity utilization @ 40%, 90% and 100% for the first 3 years of
operation. In view of satisfactory operations in existing GYMs of Dr. Gogoi, the receipt from
proposed GYM seems to be realistic and achievable

12.5 (o) DSCR CALCULATION:

Particulars FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 TOTAL

Profit After Tax 3.51 12.74 16.28 16.38 16.32 65.33
Add Depreciation 1.80 3.34 2.84 2.42 2.06 12.46
Interest on Term Loan 0.93 1.97 1.32 0.68 0.09 4.99
Total (A) 6.24 18.05 20.44 19.48 18.47 82.78
Instalment on Term Loan 0.80 4.80 4.80 4.80 2.80 18.00
Interest on Term Loan 0.93 1.97 1.32 0.68 0.09 4.99
Total (B) 1.73 6.77 6.12 5.48 2.89 22.99
Gross DSCR (A/B) 3.61 2.67 3.34 3.55 6.39 3.86 Times

12.5 (p) COMMENTS ON ADEQUACY OF CASH FLOWS: The average DSCR for the period FY
2020 till FY 2025 comes to 3.86 Times, which is satisfactory and signifies satisfactory
capacity of the promoters to repay the Bank’s debt as per schedule.

12.5 (q) Sensitivity analysis

Particulars Average DSCR IRR
Base Case
A. Profit decreased by (50 % variation) 2.39 Times N/Ap
B. Interest Rate increase by (2% variation) 3.82 Times N/Ap
C. Combination of above 2 Base Cases 2.34 Times N/Ap
After Sensitivity Analysis DSCR is well above 1.50 Times, hence satisfactory.

12.5 (r) Status of tie up of loans – under sole banking, hence fully tied up.
12.5 (s)Repayment of Term Loan - Interest to be served every month as and when debited during the
moratorium period. Thereafter monthly instalments shall be payable in arrears on the last day of each
month commencing 01/02/2020. Details of Term Loan Repayment Schedule is as under:
Door to Door Maturity 60 Months
Moratorium / Implementation period Up to January 2020
Tentative Date of C.O.D 29-02-2020
Actual Repayment Period 60 Months
Instalment frequency Monthly
EMI ₹ 36502/-
st
1 instalment due on 29-02-2020
Last instalment due on 31-01-2025
Loan Availability Period Up to February 2020
Whether interest is to be serviced during moratorium Yes.
Reason for not allowing Moratorium – We have been informed by Dr. Manas Gogoi, that he has
already enrolled Members of his new GYM and till the PINK Gym is not inaugurated, the members have
been allowed to visit other nearby GYM Branches as per their convenience. Post inauguration /
commission of PINK GYM, members shall shift from other Branches to new GYM, hence source of
repayment has already been tied up and accordingly no moratorium is allowed.

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RECOMMENDATIONS / JUSTIFICATION FOR SANCTION OF LOAN

Financial projections of the firm seem to be realistic and achievable.

Dr. Manas Gogoi is already having experience in working / dealing / management of GYM and he is
successfully operating 4 GYMs in the city Dibrugarh and Duliajan.

The Activity of GYM qualifies under MSME-Service, hence comes under Priority Sector cum Thrust
area of Lending.

As the proposed Loan is under CGTMSE Guarantee Cover, hence there shall be no Provisioning
Applicable in this Loan.

Dr. Manas Gogoi has satisfactory repayment history with us in past (M/s. Magpin Group) and is also
maintaining satisfactory repayment history with other Banks, hence he is a good pay master.

The Location of proposed GYM is satisfactory as as there is no GYM of such stature in the vicinity.

GYM NATION has become a Good Brand in the city and Dr. Manas Gogoi keeps on displaying his
Brand in various Bodybuilding events. Also trainers in his GYM are winner of events like Mr. Assam
etc.

Market report and Due Diligence on Dr. Manas Gogoi is found to be satisfactory and he has sufficient
worth.

Dr. Manas Gogoi has other source of income like Profession income from Medical Profession, Profit
income from SRL Labs through M/s. Magpins Group and Income from other 4 GYMs.

Conduct of Group Accounts – M/s. GYMNATION XPRESS is satisfactory and end use of its loan
sanctioned is found to be satisfactory.

Conduct of accounts of Dr. Manas Gogoi with other Banks is satisfactory. There is also amble scope
for takeover of existing GYM Business of Dr. Gogoi from UBI

So, in view of above justification, genuine request of the promoter, good market reputation of the
Promoters, realistic financial projection, SME Status, Satisfactory security coverage, better future
business opportunities with the promoters, aforesaid justifications, we recommend sanction of following
credit limits in favour of Dr Manas Gogoi. Gist of facility recommended is given herebelow

Facility Limits Proposed Rate of Interest Margin

Term Loan Rs.17.30 Lacs RBLR+4.55 25%

RECOMMENDED BY

(RICKU DEORI) (ARJUN YADAV)

ASST. MANAGER MANAGER

SANCTIONED BY

(MOHAMMAD DANISH)
CHIEF MANAGER Date: 29-01-2020

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