MIRA
INFORM REPORT
|
Report Date : |
31.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KURLON LIMITED |
|
|
|
|
Registered
Office : |
N-301, IIIrd Floor, North Block, Front Wing, Manipal Centre, 47,
Dickenson Road, Bangalore – 560042, Karnataka
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
09.02.1962 |
|
|
|
|
Com. Reg. No.: |
08-001443 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.148.826
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 Polyurethane Foam. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is well-established company having satisfactory track record. The rating reflects the company’s long and successful track record,
brand strength and leadership position in the Indian mattress market and its
wide spread distribution network across the country. Profitability of the
company seems to be decent. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The concern can be considered for business dealings at usual trade
terms and condition. Note: Latest financial for the year 2013 is not available with us. |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million estimated
losses suffered by India due to phishing attacks during the third quarter,
according to a study by RSA. India ranks fourth in the list of nations hit by
phishing attacks. The US remained at the top of the charts. Phishing is the
process of acquiring information such as user names, passwords and credit card
details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan = BBB |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
April, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund Based = A3+ |
|
Rating Explanation |
Moderate degree of safety and higher credit risk |
|
Date |
April, 2013 |
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 : |
|
|
Website : |
|
|
|
|
|
Factory-1: |
Jalahalli, |
|
|
|
|
Factory-2: |
Dobbespet, Off. |
|
|
|
|
Factory-3: |
Plot No. 88, Chandaka, B-Sector, Industrial Estate, Bhubaneswar, Orissa, India |
|
|
|
|
Factory-4: |
Hosur, Dharmapuri District, |
|
|
|
|
Factory-5: |
Rubber Plantation: |
|
|
|
|
Zonal Office : |
Located at · Kolkata · Chennai ·
·
· Mumbai |
|
|
|
|
Coir Division
Office : |
32/2451, A-2, |
|
|
|
|
South Central Zone
: |
Located at: ·
·
· Karimnagar · Bowenpally · Tirupathi · Mangalore · Vijaywada · Hubli ·
· Goa · Nagole · Vishakapatnam · Hosur · Gulbarga · Rajmundry · Warangal |
|
|
|
|
South Zone : |
Located at: · Chennai ·
·
·
·
· Trichy ·
· Thrissur |
|
|
|
|
West Zone : |
Located at: · Bhandup · Pune · Nagpur · Aurangabad · Baroda · Surat · Ahmedabad · Rajkot · Bhopal · Indore · Jabalpur · Pimpri · Bhiwandi |
|
|
|
|
North Zone : |
Located at: · Delhi · Chandigarh · Faridabad · Jalandhar · Jammu · Jaipur · Jodhpur · Ghaziabad · Haridwar · Lucknow · Varanasi · Kanpur · Agra · Gurgaon · Dehradun |
|
|
|
|
East Zone : |
Located at: · Kolkata · Burdwan · Siliguri · Guwahati ·
· Ranchi · Bhuwaneshwar · Raipur · Jamshedpur · Sambalpur · Berhampur · Dhanbad |
|
|
|
|
Nests : |
Located at: · Jayanagar · Yelhanka · Malleshwaram · Gurgaon · Mangalore · Hyderabad · Lucknow · Coimbatore · Udupi · Pathankot |
|
|
|
|
HUB : |
Located at: · Delhi · Bangalore · Pune · Bhubanehwar |
DIRECTORS
As on 30.09.2013
|
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 |
|
|
|
|
Name : |
Mrs. Jaya S. Pai |
|
Designation : |
Managing Director |
|
Address : |
Chitrakala, Ananthanagar, Manipal – 576119, |
|
Date of Birth/Age : |
23.08.1958 |
|
Qualification : |
BA |
|
Date of Appointment : |
15.06.2007 |
|
DIN No.: |
00030515 |
|
|
|
|
Name : |
Mr. Nitin Gajanan Rao Khot |
|
Designation : |
Director |
|
Address : |
B.C. 27, Fort, |
|
Date of Birth/Age : |
10.09.1948 |
|
Qualification : |
Degree |
|
Date of Appointment : |
22.10.1994 |
|
DIN No.: |
00030613 |
|
|
|
|
Name : |
Mr. Tonse Sudhakar Pai |
|
Designation : |
Managing Director |
|
Address : |
No.5, Chitrakala, Anathnagar, Manipal, Udupi – 576119, |
|
Date of Birth/Age : |
26.04.1953 |
|
Qualification : |
B. E., Management Training from IIM, |
|
Date of Appointment : |
01.06.2012 |
|
DIN No.: |
00043298 |
|
|
|
|
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 : |
24.07.1927 |
|
Qualification : |
Degree |
|
Date of Appointment : |
13.09.1984 |
|
DIN No.: |
00057971 |
KEY EXECUTIVES
|
Name : |
Mr. Sunanda Bhattacharya |
|
Designation : |
Secretary |
|
Address : |
Flat No. 4A, Block A2, P=42, Motijhebl Avenue, Kolkata – 700074, West
Bengal. India |
|
Date of Birth/Age : |
24.02.1988 |
|
Date of Appointment : |
30.09.2013 |
|
PAN No.: |
BEGPB6336B |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
SHAREHOLDING DETAILS FILE ATTACHED.
As on 30.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
91.56 |
|
Directors or relatives of Directors |
2.65 |
|
Other top fifty shareholders |
3.75 |
|
Others |
2.04 |
|
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 polyurethane foam |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India · Axis Bank Limited, M G Road Branch, Bangalore - 560001, Karnataka, India |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte, Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte Centre, |
|
Tel. No.: |
91-80-66276000 |
|
Fax No.: |
91-80-66276011 |
|
PAN No.: |
AACFD3771D |
|
|
|
|
Enterprises which
are owned, or have
significant influence of or are
partners with Key management personnel and their
relatives : |
· Jayamahal Trade and Investments Private Limited · Kurlon Enterprise Limited · Maha Rashtra Apex Corporation Limited · Manipal Advertising Services Private Limited · Manipal Infrastructure Limited |
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14882605 |
Equity Shares |
Rs.10/- each |
Rs.148.826 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
148.826 |
148.729 |
|
(b) Reserves & Surplus |
|
1155.424 |
884.915 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
(d) Deferred government grants |
|
0.350 |
0.909 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.097 |
|
Total
Shareholders’ Funds (1) + (2) |
|
1304.600 |
1034.650 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
303.611 |
116.092 |
|
(b) Deferred tax liabilities (Net) |
|
53.333 |
46.455 |
|
(c) Other long term liabilities |
|
453.915 |
332.668 |
|
(d) long-term provisions |
|
4.073 |
0.000 |
|
Total Non-current Liabilities (3) |
|
814.932 |
495.215 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
924.997 |
444.681 |
|
(b) Trade payables |
|
779.780 |
613.934 |
|
(c) Other current
liabilities |
|
313.443 |
89.125 |
|
(d) Short-term provisions |
|
64.472 |
67.274 |
|
Total Current Liabilities (4) |
|
2082.692 |
1215.014 |
|
|
|
|
|
|
TOTAL |
|
4202.224 |
2744.879 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
950.586 |
885.209 |
|
(ii) Intangible Assets |
|
4.918 |
2.258 |
|
(iii) Capital
work-in-progress |
|
70.859 |
4.877 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.483 |
0.483 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
175.137 |
75.507 |
|
(e) Other Non-current assets |
|
0.112 |
0.022 |
|
Total Non-Current Assets |
|
1202.095 |
968.356 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
822.260 |
654.397 |
|
(c) Trade receivables |
|
1723.496 |
808.621 |
|
(d) Cash and cash
equivalents |
|
222.594 |
135.960 |
|
(e) Short-term loans and advances |
|
231.779 |
177.545 |
|
(f) Other current assets |
|
0.000 |
0.000 |
|
Total Current Assets |
|
3000.129 |
1776.523 |
|
|
|
|
|
|
TOTAL |
|
4202.224 |
2744.879 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
148.728 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
688.848 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
837.576 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
471.569 |
|
|
2] Unsecured Loans |
|
|
4.000 |
|
|
TOTAL BORROWING |
|
|
475.569 |
|
|
DEFERRED TAX LIABILITIES |
|
|
36.957 |
|
|
DEFFERED GOVERNMENT GRANT |
|
|
1.507 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1351.609 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
663.765 |
|
|
Capital work-in-progress |
|
|
8.362 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
20.403 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
437.174
|
|
|
Sundry Debtors |
|
|
563.142
|
|
|
Cash & Bank Balances |
|
|
241.667
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
203.378
|
|
Total
Current Assets |
|
|
1445.361
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
384.065
|
|
|
Other Current Liabilities |
|
|
294.485
|
|
|
Provisions |
|
|
107.732
|
|
Total
Current Liabilities |
|
|
786.282
|
|
|
Net Current Assets |
|
|
659.079
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1351.609 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7237.251 |
5206.016 |
4088.134 |
|
|
|
Other Income |
28.679 |
50.768 |
13.390 |
|
|
|
TOTAL (A) |
7265.930 |
5256.784 |
4101.524 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3527.764 |
2750.738 |
3677.196 |
|
|
|
Purchases of stock-in-trade |
867.807 |
303.029 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(131.549) |
(84.517) |
|
|
|
|
Employee Related Expenses |
273.045 |
214.399 |
|
|
|
|
Other Expenses |
2087.418 |
1578.752 |
|
|
|
|
TOTAL (B) |
6624.485 |
4762.401 |
3677.196 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
641.445 |
494.383 |
424.328 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
145.590 |
59.173 |
46.115 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
495.855 |
435.210 |
378.213 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
65.754 |
55.158 |
42.003 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
430.101 |
380.052 |
336.210 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
116.349 |
94.498 |
125.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
313.752 |
285.554 |
210.710 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
443.386 |
220.981 |
232.164 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
31.375 |
28.555 |
21.071 |
|
|
|
Dividend |
37.207 |
29.765 |
37.182 |
|
|
|
Tax on Dividend |
6.036 |
4.829 |
6.176 |
|
|
BALANCE CARRIED TO
THE B/S |
682.520 |
443.386 |
378.446 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
3.113 |
1.631 |
11.190 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.10 |
19.19 |
14.17 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.32
|
5.44
|
5.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.94
|
7.30
|
8.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.41
|
10.60
|
15.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.37
|
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.94
|
0.37
|
0.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.44
|
1.46
|
1.84 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATIONS DETAILS
HIGH COURT OF KARNATAKA - PRINCIPAL BENCH AT BANGALORE
MISC.CVL 10761/2009
CASE PENDING
|
Petitioner/Appnt.
Name (Click) |
THE COMMISSIONER OF INCOME TAX |
|
Respondent/Defnt.
Name |
M/S KURLON LIMITED |
|
Petnr./Appnt.
Advocate |
M V SESHACHALA |
|
Respnt./Defnt.
Advocate |
|
|
Date Filed |
17/06/2009 |
|
District |
Bangalore City |
|
|
|
|
Stage |
PENDING FOR ADMISSON |
Lower Court Details
[Appeal from below case.]
|
Case No |
Court name |
|
ITA 24/2009 |
HC Bangalore |
NOTE:
The Registered office of the company has been shifted from, Chitrakala
Upendra Nagar, Manipal – 576104, Karnataka, India, to the present address w.e.f
25.09.2009.
PERFORMANCE
As per provisions of revised Schedule VI of the Companies Act, 1956,
during the year the Company has achieved a 40.48% increase in gross sales of
products at Rs.7419.377 Millions as compared to Rs.5281.135 Millions of
previous year and total income raised by 38.22% from Rs.5256.785 Millions to
Rs.7265.930 Millions. The Profit before tax is Rs.430.101 Millions in the
current year compared to Rs.380.053 Millions of the previous year. The profit
after tax is increased from Rs.94.499 Millions in 2010-11 to Rs.116.349
Millions in 2011-12.
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 non-performing products were phased out gradually. In the
fiscal year 2012, Kurlon continued to expand its product portfolio by
introducing several new products in all the three mattress categories, ie
Rubberised Coir, Spring and Foam. This initiative helped Kurlon to penetrate
into many untapped niche areas especially in Tier 3 and Tier 4 towns. At the
same time low contribution or low volume products were phased out so as to
reduce clutter at the factories, sales offices and at the dealers end.
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
concept of MRP and giving more value for money.
RETAIL OPERATIONS:
The retail division commenced its operations with two exclusive and
industry changing retail formats i.e the Kurlon Store (KS) and Kurlon Mattress
Xpress (KMX).
The KS and KMX showcase all Kurlon products. In the year 2011-12, they
began operations of eight Kurlon Stores. They launched the concept of Kurlon
Mattress Xpress from November 2011 and began operations for most of the KMXs
from March - April 2012.
In the way forward, the cumulative number of signups until FY2013 is
expected to be 150 KMXs out of which 120 KMXs expected to begin full
operations. The growth story in retail has just begun.
FUTURE OUTLOOK
Despite the looming global recession and domestic listless economy, the
future prospects for Business in the Home Comforts Industry never looked
better. With better awareness and media penetration, the Tier II and Tier III
towns are also catching up very fast with lifestyle changes of Tier I towns. In
fact, on the retail side, it has been very evident that growth in consumer
goods has been predominantly through the Tier II , Tier III towns and the rural
population. This is also triggered by the increasing disposable incomes in
these towns. This change is leading to adoption of modern products including
fabricated mattress and high quality furniture in large numbers and also the
aspiration to upgrade to a 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, Hospitality and medical tourism
are on the increase and the prospect of business looks 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 in different locations across India and has been adding capacity at
existing locations as well as starting up green field projects. The coming year
will see us add a huge chunk of incremental capacities in Gwalior and the
upcoming plant in Gujarat apart from enhancements in Yeshwantpur and Dabaspet.
This should be sufficient to meet the demands of the customers for the next 3-5
years.
This increase in capacities will also be augmented with a ramp-up in the
geographical coverage both with increase in their Area Sales Offices and dealer
network. They estimate that in the next 1-2 years they will be able to increase
the number of towns they serve by 50-60%, thereby giving us access to new markets
and geographies. This will be coupled with new products, channel and
innovations, which will help us attract consumers across the socio-economic
spectrum.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Indian Economy and
Global Markets:
In 2011, Indias economic growth has slowed to below 7 percent and the
stock markets mirrored the weakening economic conditions, but recovered
somewhat in early 2012. Agriculture and Services sectors continue to perform
well. 2.5 % growth in Agro sector forecast. Services sector grows by 9.4 %, its
share in GDP goes up to 59%. Industrial growth pegged at 4-5 percent, expected
to improve as economic recovery resumes. India remains among the fastest
growing economies of the world. Exports grew at 40.5% in the first half of this
fiscal and imports grew by 30.4%. Foreign trade performance to remain a key
driver of growth. Forex reserves enhanced- covering nearly the entire external
debt stock. Sustainable development and climate change concerns on high
priority. ( www.pib.nic.in- survey) The global economic environment which was
tenuous at best throughout the year, turned sharply adverse in September, 2011,
owing to the turmoil in the euro-zone countries and questions about others,
reflected in sharp ratings downgrades of sovereign debt in most major advanced
countries. While a large part of the reason for the slowing of the Indian
economy can be attributed to global factors, domestic factors also played role.
Among these are the tightening of monetary policy owing to high and persistent
headline inflation and slowing investment and industrial activity. However, for
the Indian economy, which is primarily driven by domestic consumption, the
outlook for growth and price stability at this juncture looks more promising.
Industry Structure
and Development:
The company is not only the largest mattress company in India, it also
is a key player in the furniture, bed, furnishings and commercial foam.
Traditionally, Indian mattress market has been dominated by rubberized coir and
foam mattresses, but recent trends also indicate a fast growing preference for
spring mattresses.
As a market leader, the company has always been working on creating
innovative products which have triggered growth in the market of organized
mattress market. These new products, coupled with the newly introduced Kurlon
Mattress Express, have led to upgrades on the consumer front.
The overall organized mattress market is estimated to be around Rs
17500.000 Millions per annum and is estimated to grow around 18% CAGR during
the next couple of years and they estimate that they will be in a dominant
position as they have always been.
With regards to commercial foam, the current per capita consumption of
PU foam in India is estimated to be around 250 grams against the global average
of approximately 1.3 kgs. With rising income and more affluent lifestyle, India
is also expected to have a per capital consumption in excess of 1 Kg by 2020
and this clearly indicates the potential growth the PU foam industry would have
in the coming years.
In this sector, the Company is already the second largest player in
India and this position will be further augmented during the coming year with
their new state of the art factory coming up in Gujarat. The new plant will
also enable us to manufacture certain new type of foams helping us to address
the demands of the new market segments and also help us capture much larger
share of the market growth.
MATTRESSES:
I.
Rubberised Coir
Mattress Market
At the outset we plan to hold on to our existing markets and intend to
penetrate interior and untapped markets with new and innovative products which
are competitively priced. The rubberized coir mattress market continues to
dominate the organized mattress sector.
II.
Spring Mattress
Market
The spring mattress market has seen a steady growth which is fuelled by
changes in customer expectation, experience and affordability. We have
understood these changes and expanded our manufacturing capabilities to cater
to this demand.
III.
Foam mattresses
Total market size of foam mattresses in INDIA is around Rs. 4000.000
Millions/ annum. Market is the mixture of PU Foam and Rubber Foam, in which PU
Foam has a larger chunk. Major market is unorganized because foam sheets are
directly getting converted to mattresses at dealers counter. However, Kurlon
managed to grow in this division of mattresses too and increased its share in
total market for foam mattresses in India. It managed to achieve turnover of
Rs.285.000 Millions during the last year from foam mattresses. Kurlon has
ambitious plans with respect to foam and foam mattresses and expect to grow
tremendously this year too
FURNITURE AND
FURNISHING:
I.
Furniture:
Furniture industry as a whole is managed by unorganized sector of
carpenters. 85% of the total market requirement is managed by them on a very
local and customized basis. There are very few companies who are trying to give
this industry a shape of organized structured business.
Furniture is an integral part of any house and the business is in line
with our current business of mattresses. We see a great opportunity to explore
this market. We guarantee to give not only good quality product with better
innovative designs but also very effective after sales service.
II.
Furnishing:
A different strategy has been developed for addressing this product
portfolio. We are focusing on developing new and trendy designs based on the
consumer feedback which would ensure that the products move in the market. Due
care is taken to ensure that our products are priced right so that our bottom
line is maintained and our channel partners make their margins. We are
proposing to channel our products through our Franchisees as well.
Concerns
Key success
factors
1) Aggressive foray into interior markets, channel expansion and new
product innovations helped increase its market share
2) Aggressive marketing and promotional campaigns creating a demand and
pull for our products
3) Improvising, monitoring, streamlining and rationalizing of systems
and procedures
4) Careful planning and deployment of resources and an effective
reviewing mechanism.
Business Concerns
1) Entry of a number of competitors into the mattress market
2) Availability of low price and low quality products
3) Increase in Raw Material and Input costs
UNSECURED LOANS
(Rs.
In Millions)
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Deposit Related Partied
Unsecured |
38.222 |
0.793 |
|
Total |
38.222 |
0.793 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10353839 |
17/04/2012 |
100,000,000.00 |
THE RATNAKAR BANK LIMITED |
SHAHUPURI,KOLHAPUR,, KOLHAPUR, MAHARASHTRA - 416001, INDIA |
B38990172 |
|
2 |
10334892 |
02/03/2012 * |
100,000,000.00 |
THE RATNAKAR BANK LIMITED |
"MAHAVEER", 179/E WARD, SHRI SHAHU MARKET YARD, KOLHAPUR, KOLHAPUR, MAHARASHTRA - 416005, INDIA |
B35129006 |
|
3 |
10330443 |
25/05/2012 * |
150,000,000.00 |
DEVELOPMENT CREDIT BANK LIMITED |
BANGALORE BRANCH NO.128, (31/1), PRESTIGE MERIDIAN ANNEXE,
M.G.ROAD, BANGALORE, KARNATAKA - 560001, |
B41037417 |
|
4 |
10306133 |
28/01/2012 * |
600,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, EXPRESS BUILDING, SECON |
B32290801 |
|
5 |
10216185 |
25/03/2010 |
50,000,000.00 |
AXIS BANK LIMITED |
NO.9, " ESQUIRE CENTER", M G ROAD,, BANGALORE, KARNATAKA - 560001, INDIA |
A83762716 |
|
6 |
10205422 |
01/03/2010 |
55,000,000.00 |
IDBI BANK LIMITED |
BANGALORE MAIN BRANCH,, IDBI HOUSE, NO.58, MISSIO |
A80057185 |
|
7 |
80007716 |
15/12/2012 * |
1,570,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B64453673 |
* Date of charge modification
FIXED ASSETS
· Land
· Building
· Plant and Machinery
· Computers
· Furniture and Fittings
· Office Equipments
· Vehicles
· Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 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.62.00 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.85.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.