MIRA INFORM REPORT

Report Date :

23.08.2012

IDENTIFICATION DETAILS

Name :	KURLON LIMITED
Registered Office :	N-301, IIIrd Floor, North Block, Front Wing, Manipal Centre, 47, Dickenson Road, Bangalore – 560042, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.02.1962
Com. Reg. No.:	08-001443
Capital Investment / Paid-up Capital :	Rs.148.728 Millions
CIN No.: [Company Identification No.]	U17214KA1962PLC001443
PAN No.: [Permanent Account No.]	AABCK2150K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Rubberised Coir Products (such as Mattresses, Beds, Pillows etc.), Plain/Curled Coir Products (such as mats and spreads etc.) and Polyurethan Foam.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 4135000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. ‘Kurl-on’ brand enjoys very favorable reputation in the industry. Financial position of the company is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan - LBBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March, 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	N-301, IIIrd Floor, North Block, Front Wing, Manipal Centre, 47, Dickenson Road, Bangalore – 560042, Karnataka, India
Tel. No.:	91-80-25595367/ 25597168/ 25597262/ 40313131
Fax No.:	91-80-25587189
E-Mail :	md@kurlon.org krishnapra.ho@kurlon.org
Website :	www.kurlon.com
Area :	5000 Sq. ft.
Location :	Leased
Factory-1:	Jalahalli, Camp Road, Yeswanthpur, Bangalore – 560 022, Karnataka, India
Factory-2:	Dobbespet, Off. Bangalore, Karnataka, India
Factory-3:	Plot No.: 88, Chandaka, B-Sector, Industrial Estate, Bhubaneswar, Orissa
Factory-4:	Hosur, Dharmapuri District, Tamilnadu, India
Factory-5:	Rubber Plantation: Amasebil Village, Kundapura Taluk, Dakshin Kannada District, Karnataka, India
Area :	100000 Sq. ft.
Location :	Owned
Zonal Office :	Located at · Kolkata · Chennai · New Delhi · Kanpur · Mumbai
Coir Division Office :	32/2451, A-2, Namaskar Buildings, S N Junction, Palarivattom, Cochin – 25.
South Centre Zone :	Located at: · Bangalore · Hyderabad · Karimnagar · Bowenpally · Tirupathi · Mangalore · Vijaywada · Vizag · Hubli · Mysore
South Zone :	Located at: · Chennai · Calicut · Madurai · Cochin · Coimbatore · Trichy · Trivandrum · Hosur
West Zone :	Located at: · Bhandup · Pune · Bhiwandi · Nagpur · Ahmedabad · Bhopal · Baroda · Indore · Jabalpur · Surat · Aurangabad · Jaipur · Faridabad · Jodhpur · Jalandar · Jammu · Chandigarh · Ghaziabad · Kanpur · Chandigarh · Haridwar · Agra
East Zone :	Located at: · Calcutta · Bhuwaneshwar · Burdwan · Siliguri · Patna · Ranchi · Guwahati · Jamshedpur · Sambalpur · Berhampur · Hyderabad · Coimbatore · Gurgaon · Nirman · Lucknow
Sales Offices :	Located at: v Ahmedabad v Aurangabad v Bangalore (No.3, 1^st Cross St Queens Road, Bangalore – 2, and At 29/26, J C Road, Bangalore, Karnataka, India. v Baroda v Bhopal v Bhubaneshwar v Mumbai v Burdwan v Calcutta v Calicut v Chandigard v Cochin v Coimbatore v Faridabad v Ghaziabad v Goa v Guwahati v Hoshiarpur v Jabalpur v Jodhpur v Hubli v Hyderabad v Indore v Jammu v Jaipur v Jalandhar v Kanpur v Chennai v Madurai v Mangalore v Mysore v Nagpur v New Delhi v Patna, Pune v Raipur v Rajkot v Ranchi v Rourkela v Siliguri v Surat v Tirupati v Visakhapatnam v Varanasi
Tel. No. :	91 – 80 – 22233212 (Bangalore)

DIRECTORS

AS ON 29.09.2011

Name :

Mrs. Jaya S. Pai

Designation :

Managing Director

Address :

Chitrakala, Ananthanagar, Manipal – 576119, Karnataka, India

Date of Birth/Age :

23.08.1958

Qualification :

BA

Date of Appointment :

15.06.2007

Din No.:

00030515

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65993KA1994PTC015958	MANIPAL HOLDINGS PRIVATE LIMITED	Director	31-07-01	31-07-01	-	Active	NO
2	U99999MH1997PTC111438	JITENDRA HARJIVANDAS SECURITIES PRIVATE LIMITED	Director	11-01-02	11-01-02	-	Active	NO
3	U67120KA1995PLC017705	MANIPAL STOCK AND SHARE BROKERS LIMITED	Director	05-11-02	05-11-02	-	Active	NO
4	U17214KA1962PLC001443	KURLON LIMITED	Director	15-06-07	11-03-05	-	Active	NO
5	U85110KA2006PTC038793	ANAMALLAIS HOSPITALITY PRIVATE LIMITED	Director	20-02-07	20-02-07	08-02-08	Active	YES
6	U51909KA2008PLC048067	KURLON TRADE AND INVESTMENT LIMITED	Director	21-10-08	21-10-08	-	Active	NO
7	U65910KA1984PLC005876	SEA ROCK INVESTMENT LIMITED	Director	25-07-09	25-07-09	-	Active	YES
8	U65910KA1983PLC005749	CHITRAKALA INVESTMENT TRADE AND BUSINESS FINANCE LIMITED	Director	25-07-09	25-07-09	-	Active	YES
9	U85110KA1989PTC010535	MANIPAL BUILDERS AND DEVELOPERS PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	YES
10	U21014KA1982PTC004659	EFFICIENT MANAGEMENT SERVICES PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	NO
11	U74999KA1993PTC014946	JAYAMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	YES
12	U85110KA1946PTC001122	JAIBHARAT MILLS PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	YES
13	U67120KA1991PTC012022	ANIL SUNIL TRADE AND INVESTMENT PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	NO
14	U65910KA1984PTC005874	RAJMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25-07-09	25-07-09	-	Active	YES
15	U34102KA1994PTC015899	MANJUNATH SUSPENSION PRODUCTS PRIVATE LIMITED	Director	27-07-09	27-07-09	27-08-09	Active	NO
16	U67120KA1940PLC001103	GENERAL INVESTMENT AND COMMERCIAL CORPORATION LIMITED	Director	27-07-09	27-07-09	-	Active	NO
17	U70102KA2011ULL056471	MANIPAL INFRASTRUCTURE LIMITED	Director	03-01-11	03-01-11	-	Active	NO
18	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Director	03-10-11	03-10-11	-	Active	NO

Name :

Mr. Nitin Gajanan Rao Khot

Designation :

Director

Address :

B.C. 27, Fort, Belgaum – 590016, Karnataka, India

Date of Birth/Age :

10.09.1948

Qualification :

Degree

Date of Appointment :

22.10.1994

Din No.:

00030613

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17214KA1962PLC001443	KURLON LIMITED	Director	22-10-94	22-10-94	Active	NO
2	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Director	03-10-11	03-10-11	Active	NO

Name :

Mr. S Ananthanarayanan

Designation :

Director

Address :

B1 Casa Lavelle-5, 12/8 Lavelle Road, Bangalore, 560001,Karnataka, India

Date of Birth/Age :

22.06.1935

Qualification :

B.E., A.I.C.W.A., F.I.I.E.

Date of Appointment :

16.06.2006

Din No.:

00025505

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31109KA1989PTC010074	DHRUVA ENERGY SYSTEMS PRIVATE LIMITED	Director	26-09-01	26-09-01	26-12-07	Strike off	NO
2	U17214KA1962PLC001443	KURLON LIMITED	Director	16-06-06	16-06-06	-	Active	NO
3	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Director	03-10-11	03-10-11	-	Active	NO

Name :

Mr. Tonse Sudhakar Pai

Designation :

Managing Director

Address :

No.5, Chitrakala, Anathnagar, Manipal, Udupi – 576119, Karnataka, India

Date of Birth/Age :

26.04.1953

Qualification :

B. E., Management Training from IIM, Bangalore

Date of Appointment :

15.06.2007

Din No.:

00043298

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67120KA1940PLC001103	GENERAL INVESTMENT AND COMMERCIAL CORPORATION LIMITED	Director	30/08/1989	30/08/1989	-	Active	NO
2	U65993KA1994PTC015958	MANIPAL HOLDINGS PRIVATE LIMITED	Director	21/07/1994	21/07/1994	-	Active	NO
3	U65923GA1995PLC001988	GOA NIDHI LIMITED	Director	11/12/1995	11/12/1995	10/6/2007	Dormant	NO
4	U72900KA1996PLC020194	MANIPAL ECOMMERCE LIMITED	Director	2/4/1996	2/4/1996	-	Active	NO
5	U99999KA1946PLC001072	CCI LIMITED	Director	9/6/1997	9/6/1997	-	Active	YES
6	U85110KA1998PLC023549	MANIPAL GOLD COMPANY LIMITED	Director	27/03/1998	27/03/1998	10/6/2007	Active	NO
7	U65992KA1999PTC024795	MANIPAL CHIT FUND PRIVATE LIMITED	Director	22/02/1999	22/02/1999	9/6/2007	Active	NO
8	U99999MH1997PTC111438	JITENDRA HARJIVANDAS SECURITIES PRIVATE LIMITED	Director	3/1/2000	3/1/2000	-	Active	NO
9	U52591MH2001PTC132918	PLUTUS LOTTERIES PRIVATE LIMITED	Director	12/10/2001	12/10/2001	30/04/2008	Active	NO
10	U85110KA1994PLC016671	MANIPAL HOME FINANCE LIMITED	Director	25/02/2005	25/02/2005	-	Active	NO
11	L85110KA1943PLC001177	MAHA RASHTRA APEX CORPORATION LIMITED	Director	10/3/2005	10/3/2005	25/05/2007	Active	NO
12	U74999DL2007PTC163154	MANIPAL ACADEMY OF HEALTH AND EDUCATION PRIVATE LIMITED	Director	19/05/2007	19/05/2007	-	Active	NO
13	U17214KA1962PLC001443	KURLON LIMITED	Managing director	31/08/2009	15/06/2007	-	Active	NO
14	U20229KA2007PTC043554	KURLON-CESARE FURNITURE PRIVATE LIMITED	Director	26/09/2008	18/01/2008	-	Active	NO
15	U51909KA2008PLC048067	KURLON TRADE AND INVESTMENT LIMITED	Director	21/10/2008	21/10/2008	-	Active	NO
16	U65910KA1984PLC005876	SEA ROCK INVESTMENT LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
17	U65910KA1983PLC005749	CHITRAKALA INVESTMENT TRADE AND BUSINESS FINANCE LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
18	U85110KA1989PTC010535	MANIPAL BUILDERS AND DEVELOPERS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
19	U21014KA1982PTC004659	EFFICIENT MANAGEMENT SERVICES PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
20	U74999KA1993PTC014946	JAYAMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
21	U85110KA1946PTC001122	JAIBHARAT MILLS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
22	U67120KA1991PTC012022	ANIL SUNIL TRADE AND INVESTMENT PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
23	U65910KA1984PTC005874	RAJMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	YES
24	U70102KA2011ULL056471	MANIPAL INFRASTRUCTURE LIMITED	Director	3/1/2011	3/1/2011	-	Active	NO
25	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Managing director	19/11/2011	3/10/2011	-	Active	NO

Name :

Mr. Kumble Taranath Bhagath

Designation :

Director

Address :

Flat No-1, Prestige Dafodiles, Langford Town, BG-25, No-6, Berile Street, Bangalore, 560025, Karnataka, India

Date of Birth/Age :

24.07.1929

Qualification :

Degree

Date of Appointment :

13.09.1984

Din No.:

00057971

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17214KA1962PLC001443	KURLON LIMITED	Director	13-09-84	13-09-84	Active	NO
2	U01132KA1988PTC009737	K.T. PLANTATIONS PRIVATE LIMITED	Managing director	21-05-90	21-05-90	Active	NO

KEY EXECUTIVES

Name :	Mrs. Shital Darak Mandhana
Designation :	Secretary
Address :	462A, 7th B Cross, 5th Main, Jagadeesh Nagar, New, Thippasandra Post, Bangalore-560075, Karnataka, India
Date of Birth/Age :	25.12.1984
Date of Appointment :	22.03.2010
PAN No.:	AIMPD1341H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Jaya S Pai	282295
Nitin Gajanan Rao Khot	83016
Tonse Sudhakar Pai	29011

AS ON 30.09.2011

Equity Shares Break – up

Category	Percentage
Bodies Corporate	91.00
Directors or relatives of directors	2.70
Other top Fifty (50) Shareholders	6.30
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Rubberised Coir products (such as mattresses, beds, pillows etc.), plain/curled coir products (such as mats and spreads etc.) and polyurethan foam
Products :	Home and Sleep Comfort Products.
Brand Names :	“Kurlon”, “Kurlo-Mat”, “Comforel”.

PRODUCTION STATUS (AS ON 31.03.2011):-

Particulars	Unit	Installed Capacity	Actual Production
Rubberized Coir*	M.T.	20400	17862
Polyurethane Foam**	M.T.	675	1284
Polyurethane Foam***	M.T.	10200	7104
Spring Mattresses	Nos	60000	22477

NOTE:

* Before adjustment of Moisture loss / rejection.

** In house consumption for Coir mattresses production

*** For commercial production including pillow division.

GENERAL INFORMATION

No. of Employees :

120 (Approximately)

Bankers :

· State Bank of India

Industrial Finance Branch, Residency Road, Bangalore- 560025, Karnataka, India

· Bank of Baroda,

Corporate Banking Branch, Richmond Road, Bangalor-560025, Karnataka, India

· Abu Dhabi Commercial Bank,

Infantary Road, Bangalore – 560001, Karnataka, India

· IDBI Bank Limited

102, Shakthi comforts Towers, K H Road, Bangalore – 560027, Karnataka, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Banks Secured	164.188	232.055
Working Capital Loans Bank Secured	420.388	234.204
Working Capital Loans Financial Institutions Secured	23.500	0.000
Loans Taken for Vehicles	7.219	5.310
Total	615.295	471.569
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Deposit Related Partied Unsecured	0.793	4.000
Total	0.793	4.000

Banking Relations :	--
Auditors :
Name :	Deloitte, Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage ll, 100/2 Richmond Road, Bangalore – 560 025, Karnataka
Tel. No. :	91-80-66276000
Fax No. :	91-80-66276011
PAN No.:	AACFD3771D
Subsidiaries :	· Kurlon Cesare Furniture Private Limited CIN No.: U20229KA2007PTC043554
Other Related Parties :	· Maharashtra Apex Corporation Limited · Commercial Corporation of India Limited · General Investments and Commercial Corporation Limited · Manipal Stock and Share Brokers Limited · Manipal Holdings Private Limited · Manipal Home Finance Limited · Jayamahal Trade and Investments Private Limited · Manipal Advertising Services Private Limited · Manipal Infrastructure Limited

CAPITAL STRUCTURE

(AS ON 29.09.2011)

Authorised Capital : Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :Rs.148.826 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs. 350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14872870	Equity Shares	Rs.10/- each	Rs.148.728 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		148.728	148.728	148.728
2] Share Application Money		0.097	0.000	0.000
3] Reserves & Surplus		884.915	688.848	526.496
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1033.740	837.576	675.224
LOAN FUNDS
1] Secured Loans		615.295	471.569	436.729
2] Unsecured Loans		0.793	4.000	4.000
TOTAL BORROWING		616.088	475.569	440.729
DEFERRED TAX LIABILITIES		46.457	36.957	30.607
Others		0.909	1.507	2.122
TOTAL		1697.194	1351.609	1148.682
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		887.467	663.765	529.201
Capital work-in-progress		4.876	8.362	6.402
INVESTMENT		0.483	20.403	25.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	654.398	437.174	459.650
	Sundry Debtors	808.621	563.142	551.704
	Cash & Bank Balances	135.982	241.667	134.070
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	207.325	203.378	292.641
Total Current Assets		1806.326	1445.361	1438.065
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	573.663	384.065	306.467
	Other Current Liabilities	373.153	294.485	267.454
	Provisions	55.142	107.732	276.067
Total Current Liabilities		1001.958	786.282	849.988
Net Current Assets		804.368	659.079	588.077
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1697.194	1351.609	1148.682

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5206.016	4088.134	3672.506
		Other Income	47.895	13.390	5.713
		TOTAL (A)	5253.911	4101.524	3678.219
Less	EXPENSES
		Consumption Materials Changes Inventories	3152.039	2454.705
		Manufacturing Service Costs	609.560	503.171
		Employee Related Expenses	201.078	175.229	3332.129
		Administrative, Selling and other Expenses	801.547	544.706
		Exceptional Items	(0.599)	(0.615)
		TOTAL (B)	4763.625	3677.196	3332.129
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		490.286	424.328	346.090
Less	FINANCIAL EXPENSES (D)		54.400	46.115	65.161
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		435.886	378.213	280.929
Less/ Add	DEPRECIATION/ AMORTISATION (F)		55.758	42.003	36.833
	PROFIT BEFORE TAX (E-F) (G)		380.128	336.210	244.096
Less	TAX (H)		94.574	125.500	101.362
	PROFIT AFTER TAX (G-H) (I)		285.554	210.710	142.735
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		220.981	232.163	138.502
Less	APPROPRIATIONS
		Transfer to General Reserve	28.555	21.071	14.273
		Dividend	29.765	37.182	29.745
		Tax on Dividend	4.829	6.175	5.055
	BALANCE CARRIED TO THE B/S		443.386	378.445	232.163
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.631	11.190	16.308
	TOTAL EARNINGS		1.631	11.190	16.308
	IMPORTS
		Raw Materials	437.231	215.424	170.324
		Stores & Spares	13.965	3.631	3.011
		Capital Goods	61.549	28.947	4.009
		Others	24.497	16.606	33.478
	TOTAL IMPORTS		537.242	264.608	210.822
	Earnings Per Share (Rs.)		19.19	14.17	9.60

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.44	5.14	3.88
Net Profit Margin (PBT/Sales)	(%)	7.30	8.22	6.65
Return on Total Assets (PBT/Total Assets}	(%)	10.60	15.94	12.40
Return on Investment (ROI) (PBT/Networth)		0.37	0.40	0.36
Debt Equity Ratio (Total Liability/Networth)		1.57	1.51	1.91
Current Ratio (Current Asset/Current Liability)		1.80	1.84	2.61

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if Available	Yes

PERFORMANCE

The Company has achieved a 27.34% increase in sales at Rs. 5206.015 Millions as compared to Rs.4088.134 Millions of previous year and total income raised by 28.10% from Rs.4101.523 Millions to Rs.5253.911 Millions. The Profit before tax is Rs.380.128 Millions in the current year compared to Rs.336.210 Millions of the previous year. The profit after tax is increased from Rs 210.711 in 2009-10 to Rs.285.554 Millions in 2010-11.

OPERATIONS

This fiscal year was exciting and challenging. A systematic and meticulous approach to business was adopted. Systems and processes were streamlined and rationalized. The Products front saw new and innovative products being introduced and phase out of non-performing products from the range gradually. Promotions were designed bearing in mind Market requirements. The KKK program was a runaway success as anticipated. National and local promotions were devised and implemented. A judicious blend of PUSH and PULL strategies yielded desired outcomes. Placement of Kurlon products was revisited and efforts to increase the market share saw new dealer enlistments in virgin territories of Tier 3 and Tier 4 towns. Pricing of Kurlon products as usual were done with the philosophy of MRP and giving more value for money.

FUTURE OUTLOOK

With India having weathered the Global recession admirably and the economy on the track of growth, the future prospects for business in the Home Comforts Industry never looked better. The Tier II and Tier III towns are also gradually catching up with lifestyle changes of Tier I towns. This change is leading to adoption of modern products including fabricated mattress and high quality furniture in large numbers. Additionally this awareness is leading to up gradation from cotton to fabricated mattress. The increased income of younger generations is also leading to generation of higher demand for premium segment mattresses and allied products. Housing, Hotel and Hospitality and medical tourism are on the increase and the prospect of business is looking good. In order to cater to this ever increasing demand, the Company resorted to optimization of its resources and planned to increase its manufacturing capacity. Mr. T. Sudhakar Pai, Chairman and Managing Director, has given personal guarantees of Rs.1586.300 Millions as on date to Banks for Loans and Advances given by them to the Company.

SUBSIDIARY COMPANIES

Kurlon Cesare Furniture Private Limited the subsidiary company got merged with the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN ECONOMY AND GLOBAL FINANCIAL MARKETS:

The world economy is moving from a post-crisis recovery to slower but solid growth this year. And developing economy is contributing almost half of total global growth. Despite some negative surprises, Global growth attained an annualized rate of 4.3 percent in the first quarter of 2011 (Source: IMF). Key among the negative surprises was the devastating effect of the earthquake and tsunami on the Japanese economy, with supply disruptions weighing heavily on industrial production, and consumer sentiment and spending. Growth also disappointed in the United States, in part due to transitory factors-including higher commodity prices, bad weather, and supply chain disruptions from the Japanese earthquake on U.S. manufacturing. In contrast, growth surprised on the upside in the euro area, powered by more upbeat investment in Germany and France. Growth in most emerging and developing economies continues to be strong.

Indias macroeconomic performance has also been vigorous, with industrial production at two year high. GDP growth is projected at 8.7% in 2010-11 and 8.5% in 2011-12 (Source: RBI), led increasingly by domestic demand. Robust corporate profits and favourable external financing will encourage investment.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is not only in industry of rubberized coir mattresses, foam mattresses and spring mattresses but also in furniture and furnishing industry. Traditional uses for the resilient and durable coir fiber include rope and twine, brooms and brushes, doormats, rugs, mattresses and other upholstery, often in the form of rubberized coir pads. The exports from this industry are around Rs.700.000 Millions. Coconut husk is the basic raw material for coir products. Around 50 per cent of the available coir husk is used to produce coir products. Hence, there is scope for growth of coir industry vis-a-vis rubberized coir mattresses. The exports of coir products last year including mats and mattings, fibre, ropes, Rubberised Coir was Rs.8100.000 Millions. Out of this Rubberised Coir Mattresses alone is Rs.700.000 Millions. Approximately 100,000 MTs of Brown fibre was consumed for the manufacture of Rubberised Coir in India during last year.

As regards foam mattresses, the most important ingredient for the production of the same is Polyol + Isocyanate + Catalysts + Surfactants + Blowing Agents = Polyurethane Foam. This chemicals are being imported and easily available in the market. Depending on the type of polyol and isocyanate used the generated foam exhibits different properties vis--vis different types of mattresses. In the last one decade usage of PU Foam has grown over 20%, and is expected to continue to be robust at an average rate of 15%. PU consumption in 2010-11 was approximately 300,000 Metric tons and could possibly touch 350,000 tons by next year.

India has a population of over one billion people, of which it is estimated less than 10% sleeps on a foam-based mattress. Hence there exists a good potential growth for PU foam in India. However, the dominance of natural bedding products, at times subsidised or protected by import duties on substitute materials, has also hindered the market penetration of PU foams at times. The Indian bedding market is substantial and dominated by low cost coir (coconut fibre), latex and cotton mattresses, but people are increasingly looking to upgrade to higher quality products made from or incorporating PU foam.

OUTLOOK

Subject is one of the very few branded manufacturing unit in India. Kurlon expects to emerge as a major player in this segment. There are huge opportunities for exports in European market as well.

As expected Kurlon crossed a Turnover of Rs. 5000.000 Millions during the year and maintained leadership position in mattress segment. Kurlon, has positioned itself a supplier of varied range of mattresses and introduced healthcare products which was welcomed by dealers as well as consumers.

CONTINGENT AND CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	7.717	10.600
Corporate Guarantee given on behalf of other companies.	--	52.000
Disputed demands under appeal not provided
For Sales Tax [appeal deposits of Rs. 7.584 millions (Previous year Rs. 4.801 millions)]	43.082	126.459
Advance License for clearance of Import	11.352	1.130

Fixed Assets:

Tangible Assets

v Land

v Building

v Plant and Machinery

v Computers

v Furniture and Fittings

v Office Equipments

v Vehicles

Intangible Assets

v Software

Form 8:-

Corporate identity number of the company	U17214KA1962PLC001443
Name of the company	Kurlon Limited
This form is for	Modification of charge
Address of the registered office or of the principal place of business in India of the company	N-301, IIIrd Floor, North Block, Front Wing, Manipal Centre, 47, Dickenson Road, Bangalore – 560042, Karnataka, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	IDBI Bank Limited Bangalore Main Branch IDBI House No.58, Mission Road. Bangalore-560027, Karnataka-KA, India.
Nature of description of the instrument creating or modifying the charge	Joint Deed Of Hypothecation.
Date of instrument Creating the charge	09.07.2011
Amount secured by the charge	Rs.514.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of interest for IDBI Bank Limited (Exclusive of Interest Tax other Levies/Duties) BPLR-1.25 bps (Presently BPLR is @13.25% p.a.) Payable Monthly. (Subject to minimum of 12% p.a.) Penal Interest for Non-Compliance of terms of sanction : Max2% p.a. over the normal rate. Prepayment Penalty as per terms of sanction for other Banks in the Consortium as per terms of sanction by respective Banks. Terms of Repayment WLC- On Demand. Advance is for a period of 12 months and subject to review as per sanction Margin 20% of current Assets for IDBI Bank as per terms of sanction by the respective Banks in the consortium Extent and Operation of the charge (a) The charge operates as security, inter alia, for the due repayment by Co to IDBI consortium (comprising of IDBI Bank Limited, SBI, BOB and AXIS Bank Limited) of its aggrt wlc facilities of Rs. 514.700 millions sanctioned together with interest, additional interest, liquidated damages, premia on redemption, costs, charges, expenses and all other money payable by the Company to IDVI Consortium in terms of WCL Consortium Agr date 09.07.2008 and shall rank pari-passu. Others Members of the IDBI consortium. (b) The Company has undertaken to keep the goods hypothecated in marketable and good condition at its own costs and to insure the same in the joint names of the Company and the members of the IDBI consortium. (c) All goods hypothecated and all realizations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive prop of the members IDBI Consortium.
Short particulars of the property charged	The whole of the Current Assets of the company namely, stocks of raw materials. Stocks in Process, Semi-finished and finished Goods, Stores and Spares (consumable Stores and Spares), Bill Receivable and Book Debts and all other movables, both present and future and more particularly described in the Schedule to the Joint Deed of Hypothecation attached hereto.
Particulars of the present modification	The amount secured stands increased from Rs.320.000 millions to Rs.514.700 millions The consortium is IDBI Bank Limited and the consortium is now known as IDBI Consortium the securities described in col no.14 is available for enhanced limit IDBI Bank Limited entered the consortium all other terms and conditions remain unchanged

WEBSITE DETAILS :

Subject is into the business of pure comfort. A head start in the business in 1962 by Mr. Ramesh Pai, the chairman, it is now looking into an extensive brand extension, and a complete makeover - from sleep comfort, to home comfort.

To give its expanding activities a definite direction and a wider dimension, Subject is repositioning itself as a major player in the comfort industry rather than a leader in just the mattress business. Thus operating on a larger canvas, the company will have more room to grow, and will manufacture a whole wide range of trusted quality products for its customers.

HISTORY

Subject is a Manipal Group Company came into existence in 1962. The Company was then called 'Karnataka Consumer Products Limited' and on the 8^th of December, 1995 the Company was renamed as Subject.

Subject is part of the 2,000 crore Manipal Group of companies founded by the Pai's of Manipal which is a major financial and industrial group in India. The Group has its activities spread over Financial Services, Manufacturing, Education, Electronic Commerce, Software Services, Share Broking, etc. The Group is headed by Mr. T. Ramesh U. Pai who is the Chairman of the Group. Mr. Pai is on the Boards of several well-known Industrial, Commercial and Educational Enterprises.

Subject was conceived when Mr. Pai was in Germany in 1959. He found that car seat cushions were manufactured of rubberised coir. The manufacturer was importing curled coir from Sri Lanka.In India, the coir industry has developed very well, mostly in Kerala where they produce 'Retted Fibre'. Green husks of coconut are immersed in the salty backwaters for 10 to 12 months and the retted husk is supplied to various homes to make Mats and Matting rolls after producing the yarn from this fibre. This has created employment to many women in the State.

Austrian technology was available to extract fibre from the dried coconut husk and curl it into ropes and keep it in that state for minimum 3 months. When uncurled, curled coir becomes tiny springs. The cars manufactured in India in 60s were very few in numbers. It was uneconomical to start the moulded product out of the rubberised coir to manufacture car seat cushions. After a lot of experiments and quality control steps, Mr.Ramesh Pai thought of entering into Rubberised Coir mattress manufacturing. Thus, Subject was born. became one of the most popular mattresses providing restful sleep to Indian consumers.

Today Subject has created direct employment over 1000 people and indirect employment to lakhs of coir workers across the sub-continent. Subject's success is built on a solid infrastructure and its powerful marketing strength. The Company has 44 Sales Offices, which are profit centers, strategically located all over the country. All the centers are working on and trade terms. The Company products are exported to West Asia viz; U.A.E., Qatar, Oman, Bahrain, UK, Europe, South and East of Africa, Indian Ocean rim, SAARC, South East and Far East countries.

Subject is the brand leader in the industry and has acquired major market share in the branded mattresses segment. Taking advantage of the market potential, Subject strongly believes in giving the customers quality products of a wide range at competitive prices, which will result in customer satisfaction.

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.55.51
UK Pound	1	Rs.87.60
Euro	1	Rs.69.15

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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 EXPLANATIONS

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.