MIRA INFORM REPORT

Report Date :

25.11.2006

IDENTIFICATION DETAILS

Name :	KUTTY FLUSH DOORS & FURNITURE COMPANY PRIVATE LIMITED
Registered Office :	1167, Purasawakkam High Road, Koyambedu, Chennai-600107, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.06.1962
Com. Reg. No.:	18-4814
CIN No.: [Company Identification No.]	U36101TN1962PTC004814
TAN No.: [Tax Deduction & Collection Account No.]	CHEK00305E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter Doors, Frames and other wooden items

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 625000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track records. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	1167, Poonamallee High Road, Koyambedu, Chennai-600107, Tamilnadu, India
Tel. No.:	91-44-24871424/24799494
Mobile No.:	91-9840017434
Fax No.:	91-44-24871434/24799434
E-Mail :	kutys@vsnl.com
Area :	44000 Sq. ft
Location :	Owned
Branch	2A, I Floor, Vinodh Complex, 25/1, J C Road, Bangalore – 560002 Tel. No. 91-80-22236817 122, I Floor, Babu Khan Estate, Basheerbagh, Hyderabad – 500001 Tel. No. 91-40-23235831 63/A – 1, Ground Floor, KPRS Towers, Thennur, Trichy – 620017 Tel. No. 91-431-2791188 Located at: Ø Bangalore Ø Mumbai Ø Cochin
Area Office.:	D – 86/B, West Jyoti Nagar Extinction, Loni Road, Delhi – 110094 Contact Person – Mr. Mayank Pal Singh Mobile No.: 91-9312511584 218/F, Priti Yari Road, Versova, Mumbai – 400061 Contact Person – Mr. Noorudin Kilan Mobile No.: 91-9223301091 Type II Quarters, 375, Block No. 6. New A G Colony, Opposite Kalinga Stadium, Nayapalli, Bhubaneshwar – 751012, Orissa Contact Person – Mr. H V Dora Mobile No.: 91-9937378588 710, Lalleswari Group Housing Society, Sector – 21D, Dadkal Chowk. Faridabad, Haryana – 124001 Contact Person – Mr. Ashutosh Choubey Mobile No.: 91-9312693904

DIRECTORS

Name :	Mr. K Sankarakrishnan
Designation :	Director
Address :	Thejai No. 7, W Block, Main Road, Anna Nagar, Chennai – 600040
Date of Birth/Age :	24.08.1939
Qualification :	B. Sc (Tex) Hons. University First and Gold Medalist
Experience :	44 Years
Name :	K Natarajan
Designation :	Director
Date of Birth/Age :	04.07.1936
Name :	P K Hashim
Designation :	Director
Date of Birth/Age :	07.06.1940
Name :	P K Haris
Designation :	Director
Date of Birth/Age :	31.05.1944
Name :	Vibhu Natajan
Designation :	Director
Date of Birth/Age :	03.07.1961
Name :	P. K. Kader Kutty
Designation :	Director
Date of Birth/Age :	23.06.1962
Name :	Dhruva S. Chandrie
Designation :	Director
Date of Birth/Age :	23.05.1968

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. K Sankarakrishnan	8950
Kalavathi Natarajan	5590
P. K. Hashim	4285
P. K. Haris	4115
Manu Natarajan	3137

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter Doors, Frames and other wooden items
Product.:	Moulded Raised HDF Panel Door Shutter
Brand Names :	Kutty’s Heera , Kutty’s Vishala, Kutty’s Fantasy and Kutty’s Eleganza
Exports to :	Sri Lanka and Dubai
Terms :
Selling :	120 Days

PRODUCTION STATUS

Particulars	Production in 2005	Production in 2004
Doors in numbers	58286	44719
Sheets	--	14178 cbm
Resins	52250 kgs	52014 kgs

GENERAL INFORMATION

Customers :

Builders

Bankers :

Canara Bank

Nerkundrum Branch

Chennai – 600 107

Facilities :

SECURED LOANS
Canara Bank
a. Term Loan	0.000
(Secured by Hypothection of Forklift)
b. Cash Credit	9.595
(Secured by Hypothection of Raw materials & guaranteed by Directors)
TOTAL	9.595
UNSERURED LOANS
Short Term Loans and advances	5.609

Banking Relations :	Good
Auditors :	N. Sankar & Company Chartered Accountants Chennai

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,00,000	Equity Shares	Rs. 100/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
72,207	Equity Shares	Rs. 100/- each	Rs. 7.220 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		7.220	7.220	7.220
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		151.385	10.973	9.750
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.605	18.193	16.970
LOAN FUNDS
1] Secured Loans		0.000	8.559	9.596
2] Unsecured Loans		0.000	5.760	5.610
TOTAL BORROWING		0.000	14.319	15.206
DEFERRED TAX LIABILITIES		0.221	0.301	0.018
TOTAL		158.826	32.813	32.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.062	4.019	2.463
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.219	0.219	0.220
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	23.499	19.079
	Sundry Debtors	0.000	24.996	20.528
	Cash & Bank Balances	197.265	3.289	2.458
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances		6.736	7.106
Total Current Assets		197.265	58.520	49.170
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	41.720	27.221	19.659
	Provisions		2.724
Total Current Liabilities		41.720	29.945	19.659
Net Current Assets		155.545	28.575	29.512
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		158.826	32.813	32.194

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	152.077	106.699	81.789
Profit/(Loss) Before Tax	2.230	1.209	0.208
Provision for Taxation	0.783	0.246	(0.44)
Profit/(Loss) After Tax	1.447	0.963	0.252
Total Expenditure	(149.847)	(105.489)	NA

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2004	31.03.2003
PAT / Total Income	(%)	--	0.90	0.25
Net Profit Margin (PBT/Sales)	(%)	--	1.13	0.25
Return on Investment (ROI) (PBT/Networth)		--	0.07	0.01
Debt Equity Ratio (Total Liability/Networth)		0.26	--	1.16
Current Ratio (Current Asset/Current Liability)		4.72	--	2.50

LOCAL AGENCY FURTHER INFORMATION

Some interesting article in THE HINDU about the Company:

Kutty Flush Doors and Furniture Company Private Limited has come out with single moulded panel door. Made of high-density fiberboard, this latest offering from the company can withstand 0.100 millions slams. The single panel doors are water resistant and the cost of a single panel bedroom door is fixed at Rs.0.003 millions.

It’s a door that can withstand 0.100 millions slams, “says the company. The Doa Door is the latest offering from the Chennai-based Kutty Flush Doors and Furniture Company Private Limited.

The Doa door made of a single moulded panel from high-density fiberboard has been launched in response to popular market demand.

The price of the single panel bedroom door is Rs. 0.003 million. Doors, like other products have life cycle.

Just for comparison, the main door in a five star hotel takes 50000 to 70000 openings and closings, while the bedroom door in a girl’s school takes 50000 to 60000.

Mr. K. Sankarakrishnan, Director, Kutty Flush Coors and Furniture Company, said that the single panel was an advance on the two, four and six panel doors, which were earlier available.

The Rs.100.000 millions company had entered into an alliance with US-based Masonite International Corporation in 1996, to manufacture water resistant doors

Mr. Sankarakrishnan said that Kutty’s dedicated door plant was set up in 1962 and this flush door was an economic alternative to solid wood doors.

To meet the shortage of wood harvested from forests, plantation wood and wood-based panels were being used by Kutty’s for over 20 years.

The company also manufactures fire-resistant doors, Mr. Sankarakrishnan said that the company’s products could be seen in a range of buildings in Chennai starting from the All-India Radio to the Slum Clearance Board buildings.

Breif Discription

Eco-friendly door shutters with core of block board type internal structure (with voids behind the face in the vicinity of sunken portions of mouldings in a total area not exceeding 35% of the face area of the shutter and Pfresin bonded panel faces of pre-treated, compressed, oil tempered and hardened high density moulded raised fibre board. Rails, stiles and strips used in the construction of the door are eco-friendly non-forest wood, seasoned and treated. At the customer’s/ user’s specific request the voids are filled with fiber.

Scope of Assessment

Use in dry situations and moderate wet situations (with coating, special provisions) in residential, commercial and factory buildings, of Kutty’s Heera, Kutty’s Vishala, Kutty’s Fantasy and Kutty’s Eleganza eco-friendly, fully phenolic bonded, formaldehyde resin bonded eco-friendly door sjutters, with moulded and raised panels of pre-treated, compressed, oil tempered and hardened high density fiber board phenolic bonded to block board type core.

The rails, stiles and core strips are of eco-friendly non- forest timber, seasoned and treated.

Note:

Items of Production / Marketing etc. since 1962

Kutty’s ® Bond Wood Flush Doors:

Treated, sterilized and kiln-seasoned, phenol-formaldehyde resin boinded. (Also, with ISI Certification Marking)

Paint grade (Commercial):

Teak wod veneered with or without Torina, Penta Torina Tanjore Art Patterns.

Kuty-Coat :

A special coating of phenolic base fort high banter properties for moisture and somne water splash. The Ideal alternate for toilet doors. It is unlike filmy plastic doors.

Kutty’s® Elequanza Panel Doors (in alliance with Masonite USA and Canada) using imported phenolic moulded compressed high density plates.

Stands 4-hour boiling water test and 100000 slamming test. Four attractive patterns – Vishala, Heera, Fantasy and Elequanza.

Kutty’s ® Cebrina & Cebrina Super : 100% eco-friendly. CPWD approved, confirming to TAD cell specifications Cebrina (CISR-know-how) and 100% solid strip core Cebrina Super.

Kutty’s 6 Stonyply ® Half-an-hour and One-hour Fire Rated Door

Manufactured as per the prototype tested and certified by CBRI, Roorkee.

Kutty’s ® Stonply ® Promat one hour and Two hours rated fire doors (in alliance with Promat- Etex group of Holland)

Frames : Kiln-seasoned and chemically treated hardwood door and window frames.

K. Sankarakrishnan

Director

Research Bodies:

Served for 3 terms on the Board of Governors of Indian Plywood Industries Research and Training Institute (IPIRTI)

Member, DST-TIFAC Monitoring Committee

Research Advisory Committee Institute of Wood Science and Technology, Government of India

United Nation Agencies:

Served on the panel of Experts of UNCTAD – GATT; and UNIDO

Other Government Sponsored Nominated Committees

Vice-Chairman SSI- Regional Advisory Committee, Central Excise

Publications:

3 publications and 5 Scientific Papers

Patents and Product Developments:

Two patents to his credit, two more awaiting patents

Kutty, a Chennai based door maker, has tied up with Masonite International Corporation for compressed moulded high-density wood fiber skin doors, and with Promat Asia Pacific for fiber doors. Kutty’s flush doors have a solid core that consists of a block core of wood strips laid edge to edge, and bonded with cross band and face veneers on each side. They are available in a variety of veneer facings such as paint grade, decorative, high-pressure laminates etc., the most popular being the decorative n atural teak veneer faced doors. Kutty’s Masonite doors are available in four patterns and in thickness of 30, 35 and 40 mm, in heavy-duty and light duty designs and are recommended for interiors in dry areas. They can withstand 100000 slams and 4 hour boiling. Doors that are commonly used in bathrooms are plastic coated to give them greater resistance to water.

Kutty products are available mainly in natural wood colours and come with a life long warranty. Even a single door order is accepted. With a network of 21 dealers in a place, it is looking for 6 more in major cities of India. The company feels that since this industry is very sensitive to government levies, that increases the finished product prices by up to 30 percent, it is unable to remain competitive at the lower segment of the market. It feels threatened by manufacturers and traders offering factory made complete door sets along with fixing at site, to capture the market.

AS PER WEBSITE

KUTTY'S NEW DOOR CAN TAKE MORE SLAMS

Bureau

CHENNAI, November, 12

IT's a door that can withstand Rs. 0.100 Millions slams," says the company. The Doa Door is the latest offering from the Chennai-based Kutty Flush Doors And Furniture Co. Private Limited .

The Doa door made of a single moulded panel from high-density fibreboard has been launched in response to popular market demand.

The price of the single panel bedroom door is Rs 2,900. Doors, like other products, have a life cycle.

Just for comparison, the main door in a five star hotel takes 50,000 to 70,000 openings and closings, while the bathroom door in a girls' school takes 50,000 to 60,000!

Mr. K.Sankarakrishnan, Director, Kutty Flush Doors and Furniture Company, said that the single panel was an advance on the two, four and six panel doors, which were earlier available.

The Rs 100.000 Millions company had entered into an alliance with the US-based Masonite International Corporation in 1996, to manufacture water resistant doors.

Mr Sankarakrishnan said that Kutty's dedicated door plant was set up in 1962 and this flush door was an economic alternative to solid wood doors.

To meet the shortage of wood harvested from forests, plantation wood and wood-based panels were being used by Kuttys for over 20 years.

The company also manufactures fire-resistant doors, Mr Sankarakrishnan said. He said that the company's products could be seen in a range of buildings in Chennai starting from the All-India Radio to the Slum Clearance Board buildings.

KUTTY FLUSH DOORS & FURNITURE CO PRIVATE LIMITED
Established : 1962
Factory : Chennai
Workforce : 186
Capacity : 84,000 sq. m yearly
Tel : 044 4871424
Email : kutys@.vsnl.com
Inquiry # : H351

Kutty’s plant in Chennai is equipped with modern machinery made by companies from around the world–Germany, UK, US; and from India as well. Kutty offers flush doors under the brand name Bond-Wood. The wide range includes natural teak and rosewood veneered doors, with several layers of length. The panel doors, named Kutty’s Deurood are manufactured mostly from prime hardwood using waterproof plywood and other varieties of panel materials. The frames are made of seasoned and treated hardwoods which are water proof. The company provides external lipping on doors, cutting of arch doors and openings for vision panels and louvres. The moulding of special designs on surfaces is another feature, those are marketed under the brand name Torina. The fire-rated doors offered by have been developed with certification from the timber Research and Development Association, UK and in collaboration with the Central Building research Institute, Roorkee. They include 30 and 60-minute models. The non-forest solid rubber wood is employed for rails, stiles and core strips. The panels and the doors are both phenolic-resign bonded that stand accelerated water-resistance test of four hours as per IS : 4020 and TADS 3. The factory pre-primed teak/deodar/walnut etc are finished and painted easily.

Kutty has its headquarters at Chennai and its offices at Bangalore, Hyderabad, Trichy and Port Blair.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.87
UK Pound	1	Rs.85.99
Euro	1	Rs. 58.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions