MIRA INFORM REPORT

Report Date :

20.05.2013

IDENTIFICATION DETAILS

Name :	KURLON LIMITED
Registered Office :	N-301, IIIrd Floor, North Block, Front Wing, Manipal Centre, 47, Dickenson Road, Bangalore – 560042, Karnataka
Country :	India
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 (53)

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 :	Fine
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. ‘Kurl-on’ brands enjoys very favorable reputation in the market, the company is progressing very well. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 - BBB+
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	October, 2012

Rating Agency Name	ICRA
Rating	Non Fund based limit - A2+
Rating Explanation	The above average credit quality it carry higher credit risk.
Date	October, 2012

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 customercare@kurlon.com sreeraj.acs@gmail.com
Website :	www.kurlon.com
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, India
Factory-4:	Hosur, Dharmapuri District, Tamilnadu, India
Factory-5:	Rubber Plantation: Amasebil Village, Kundapura Taluk, Dakshin Kannada District, Karnataka, India
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 Central Zone :	Located at: · Bangalore · Hyderabad · Karimnagar · Bowenpally · Tirupathi · Mangalore · Vijaywada · Hubli · Mysore · Goa · Nagole · Vishakapatnam · Hosur · Gulbarga · Rajmundry · Warangal
South Zone :	Located at: · Chennai · Calicut · Madurai · Cochin · Coimbatore · Trichy · Trivandrum · 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 · Patna · 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: 28.09.2012

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

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31109KA1989PTC010074	DHRUVA ENERGY SYSTEMS PRIVATE LIMITED	Director	26/09/2001	26/09/2001	26/12/2007	Strike off	NO
2	U17214KA1962PLC001443	KURLON LIMITED	Director	16/06/2006	16/06/2006	-	Active	NO
3	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Director	03/10/2011	03/10/2011	-	Active	NO
4	U36104KA2012PTC065664	KURLON MATTRESS PRIVATE LIMITED	Director	31/08/2012	31/08/2012	-	Active	NO

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

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65993KA1994PTC015958	MANIPAL HOLDINGS PRIVATE LIMITED	Director	31/07/2001	31/07/2001	-	Active	NO
2	U99999MH1997PTC111438	JITENDRA HARJIVANDAS SECURITIES PRIVATE LIMITED	Director	11/01/2002	11/01/2002	-	Active	NO
3	U67120KA1995PLC017705	MANIPAL STOCK AND SHARE BROKERS LIMITED	Director	05/11/2002	05/11/2002	-	Active	NO
4	U17214KA1962PLC001443	KURLON LIMITED	Director	15/06/2007	11/03/2005	-	Active	NO
5	U85110KA2006PTC038793	ANAMALLAIS HOSPITALITY PRIVATE LIMITED	Director	20/02/2007	20/02/2007	08/02/2008	Active	YES
6	U51909KA2008PLC048067	KURLON TRADE & INVESTMENT LIMITED	Director	21/10/2008	21/10/2008	16/08/2012	Active	NO
7	U65910KA1984PLC005876	SEA ROCK INVESTMENT LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
8	U65910KA1983PLC005749	CHITRAKALA INVESTMENT TRADE AND BUSINESS FINANCE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
9	U85110KA1989PTC010535	MANIPAL BUILDERS & DEVELOPERS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
10	U21014KA1982PTC004659	EFFICIENT MANAGEMENT SERVICES PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
11	U74999KA1993PTC014946	JAYAMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
12	U85110KA1946PTC001122	JAIBHARAT MILLS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
13	U67120KA1991PTC012022	ANIL SUNIL TRADE AND INVESTMENT PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
14	U65910KA1984PTC005874	RAJMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
15	U34102KA1994PTC015899	MANJUNATH SUSPENSION PRODUCTS PRIVATE LIMITED	Director	27/07/2009	27/07/2009	27/08/2009	Active	NO
16	U67120KA1940PLC001103	GENERAL INVESTMENT AND COMMERCIAL CORPORATION LIMITED	Director	27/07/2009	27/07/2009	-	Active	NO
17	U70102KA2011ULL056471	Manipal Infrastructure Limited	Director	03/01/2011	03/01/2011	-	Active	NO
18	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Additional director	19/11/2012	03/10/2011	-	Active	NO
19	U36104KA2012PTC065664	KURLON MATTRESS PRIVATE LIMITED	Director	31/08/2012	31/08/2012	-	Active	NO
20	U74900KA2012PTC067200	DEEPA JYOTHI TRADING AND SERVICES PRIVATE LIMITED	Director	12/12/2012	12/12/2012	-	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

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17214KA1962PLC001443	KURLON LIMITED	Director	22/10/1994	22/10/1994	-	Active	NO
2	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Additional director	19/11/2012	03/10/2011	-	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 :

01.06.2012

DIN No.:

00043298

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP 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	U72900KA1996PLC020194	MANIPAL ECOMMERCE LIMITED	Director	02/04/1996	02/04/1996	-	Amalgamated	NO
4	U99999KA1946PLC001072	CCI LIMITED	Director	09/06/1997	09/06/1997	-	Active	NO
5	U85110KA1998PLC023549	MANIPAL GOLD CO LIMITED	Director	27/03/1998	27/03/1998	10/06/2007	Active	NO
6	U65992KA1999PTC024795	MANIPAL CHIT FUND PRIVATE LIMITED	Director	22/02/1999	22/02/1999	09/06/2007	Active	NO
7	U99999MH1997PTC111438	JITENDRA HARJIVANDAS SECURITIES PRIVATE LIMITED	Director	03/01/2000	03/01/2000	-	Active	NO
8	U52591MH2001PTC132918	PLUTUS LOTTERIES PRIVATE LIMITED	Director	12/10/2001	12/10/2001	30/04/2008	Active	NO
9	U85110KA1994PLC016671	MANIPAL HOME FINANCE LIMITED	Director	25/02/2005	25/02/2005	-	Active	NO
10	L85110KA1943PLC001177	MAHA RASHTRA APEX CORPORATION LIMITED	Director	10/03/2005	10/03/2005	25/05/2007	Active	NO
11	U74999DL2007PTC163154	Manipal Academy of Health & Education Private Limited	Director	19/05/2007	19/05/2007	-	Active	NO
12	U17214KA1962PLC001443	KURLON LIMITED	Managing director	01/06/2012	15/06/2007	-	Active	NO
13	U20229KA2007PTC043554	KURLON-CESARE FURNITURE PRIVATE LIMITED	Director	26/09/2008	18/01/2008	-	Amalgamated	NO
14	U51909KA2008PLC048067	KURLON TRADE & INVESTMENT LIMITED	Director	21/10/2008	21/10/2008	-	Active	NO
15	U65910KA1984PLC005876	SEA ROCK INVESTMENT LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
16	U65910KA1983PLC005749	CHITRAKALA INVESTMENT TRADE AND BUSINESS FINANCE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
17	U85110KA1989PTC010535	MANIPAL BUILDERS & DEVELOPERS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
18	U21014KA1982PTC004659	EFFICIENT MANAGEMENT SERVICES PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
19	U74999KA1993PTC014946	JAYAMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
20	U85110KA1946PTC001122	JAIBHARAT MILLS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
21	U67120KA1991PTC012022	ANIL SUNIL TRADE AND INVESTMENT PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
22	U65910KA1984PTC005874	RAJMAHAL TRADE AND INVESTMENTS PRIVATE LIMITED	Director	25/07/2009	25/07/2009	-	Active	NO
23	U70102KA2011ULL056471	Manipal Infrastructure Limited	Director	03/01/2011	03/01/2011	-	Active	NO
24	U36101MH2011PLC222657	KURLON ENTERPRISE LIMITED	Managing director	28/01/2013	03/10/2011	-	Active	NO
25	U74900KA2012PTC067200	DEEPA JYOTHI TRADING AND SERVICES PRIVATE LIMITED	Director	12/12/2012	12/12/2012	-	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 :

24.07.1927

Qualification :

Degree

Date of Appointment :

13.09.1984

DIN No.:

00057971

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17214KA1962PLC001443	KURLON LIMITED	Director	13/09/1984	13/09/1984	-	Active	NO
2	U01132KA1988PTC009737	K.T. PLANTATIONS PRIVATE LIMITED	Managing director	21/05/1990	21/05/1990	-	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
Email :	shital@kurlon.org

MAJOR SHAREHOLDERS

As on: 28.09.2012

SHAREHOLDING DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Bodies Corporate	91.50
Directors or relatives of directors	2.54
Other top Fifty (50) Shareholders	3.77
Others	2.19
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 :

ITC Code	Products Descriptions
94042900	Rubberised Coir Mattresses, Cushions
94041000	Polyfibre Good
94049009	Mattresses

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)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans from Banks Secured	300.722	112.526
Other Loans and Advances Secured	2.889	3.566
Loans Repayable on Demand Secured	886.775	443.888
Total	1190.386	559.980

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
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 CIN No.: U74999KA1993PTC014946 Kurlon Enterprise Limited CIN No.: U36101MH2011PLC222657 Maha Rashtra Apex Corporation Limited CIN No.: L85110KA1943PLC001177 Manipal Advertising Services Private Limited CIN No.: U74300KA1991PTC011770 Manipal Infrastructure Limited CIN No.: U70102KA2011ULL056471

CAPITAL STRUCTURE

As on: 28.09.2012

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

As on: 31.03.2012

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
14882600	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	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		148.826	148.729	148.728
2] Share Application Money		0.000	0.097	0.000
3] Reserves & Surplus		1155.424	884.915	688.848
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1304.250	1033.741	837.576
LOAN FUNDS
1] Secured Loans		1190.386	559.980	471.569
2] Unsecured Loans		38.222	0.793	4.000
TOTAL BORROWING		1228.608	560.773	475.569
DEFERRED TAX LIABILITIES		53.333	46.455	36.957
DEFFERED GOVERNMENT GRANT		0.350	0.909	1.507
TOTAL		2586.541	1641.878	1351.609
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		955.504	887.466	663.765
Capital work-in-progress		70.859	4.877	8.362
INVESTMENT		0.483	0.483	20.403
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	822.260	654.398	437.174
	Sundry Debtors	1723.496	808.621	563.142
	Cash & Bank Balances	222.594	135.960	241.667
	Other Current Assets	0.112	0.022	0.000
	Loans & Advances	406.916	253.052	203.378
Total Current Assets		3175.378	1852.053	1445.361
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	779.780	613.934	384.065
	Other Current Liabilities	767.358	421.793	294.485
	Provisions	68.545	67.274	107.732
Total Current Liabilities		1615.683	1103.001	786.282
Net Current Assets		1559.695	749.052	659.079
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2586.541	1641.878	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)		1.96	1.80	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	----------------------
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	Yes
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

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

Fixed Assets:

Tangible Assets

· Land

· Building

· Plant and Machinery

· Computers

· Furniture and Fittings

· Office Equipments

· Vehicles

· Software

AS PER WEBSITE DETAILS:

HISTORY:

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

Kurlon 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 booking, etc. The group is headed by Mr. Sudhakar Pai who is the Chairman of the group. Mr. Pai is on the board of several well-known industrial, commercial and educational enterprises.

Subject was conceived when Mr. Pai was in Germany in 1962. He found that car seat cushions were manufactured of rubberized coir. The manufacturer was improving curled coir from Sri Lanka.

In India, the coir industry has developed very well, mostly in Kerala where they produce ‘Retted Fiber’. Green husks of coconut are immersed in the salty backwards for 10 to 12 months and the retted husk is supplied to various homes to make Mats and Matting rolls after producing the yam from this fiber. This has created employment to many women in the state.

Austrian technology was available to extract fiber from the dried coconut husk and curl it into ropes and keep it in that state for minimum 3 months. When uncurled, they become tiny springs. The cars manufactured in India in 60’s were very few in numbers. It was uneconomical to start the molded product out of the rubberized coir to manufacture car seat cushions. After a lot of experiments and quality control steps, Mr. Ramesh Pai thought of entering into Rubberized coir mattress manufacturing. Thus Kurlon was born, become one of the popular mattresses providing restful sleep to millions of Indian consumers.

Today, Kurlon has created direct employment to over 1000 people and indirect employment to lakhs of coir workers across the sub-continent . Kurlon’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 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, Kurlon strongly believes in giving the customers quality products of a wide range at competitive prices, which will result in customer satisfaction.

PRESS RELEASES:

KURLON PLANS TO RAISE RS 2000.000 MILLIONS FOR EXPANSION VIA PE

Mattress-maker Kurlon is looking to invest Rs 2000.000 Millions to expand its footprint and add capacity. CNBC-TV18's Vineetha Athrey reports that the company is all set to raise money through the private equity route.

India's leading mattress-maker Kurlon is having sleepless nights as it rushes to finalize the contours of a Rs 2000.000 Millions fund-raising exercise to finance its expansion drive for FY13. The company's plans also involve selling a 10%-15% stake to private-equity (PE) firms with whom talks are in the final stages.

Also watch the accompanying video

T Sudhakar Pai, MD, Kurlon, "Our present expansion requires liquidity of around Rs 2000.000 Millions. Out of this, we're looking to give 10-15% of the company's equity to PE firms and raise the rest from banks. So the liquidity with the company will go from the present Rs 7500.000 Millions to Rs 12000.000-15000.000 Millions will suffice for our requirement for the next couple of years."

The expansion drive includes adding capacity and increasing the dealership network to 10,000 from the current 7,000. A major chunk of the funds will go towards setting up a new Rs 100-crore factory in Gujarat, a move, the company says, will increase its monthly manufacturing capacity from 1,60,000 mattresses to 2,20,000 mattresses. It also plans brown field expansion to add 30,000 mattresses.

"The fund of Rs. 2000.000 Millions will be used for land, building, machinery, adding capacity as well as working capital margin required for the company."

The expansion is not just about increasing presence, it's the groundwork for Kurlon's plans to eventually go public, which will be possible only after it doubles revenues from the current Rs 7500.000 Millions.

As far as the timelines is concerned, the company says that with the right conditions, a listing should be possible soon.

PE INVESTORS SET TO FUEL KURLON EXPANSION

Global private equity majors and large buyout funds are understood to be in advanced discussions with the promoters of Subject to acquire a minority stake in the company. Kurlon Limited is a Rs 7500.000 Millions group company of the Manipal Group has around 20 per cent market share in the Rs 40000.000 Millions branded mattresses business in India.

According to investment bankers close to the company, Apax Private Equity which focuses on large transactions including taking management control is in advanced discussions for a Rs 2000.000 Millions investment. Investment bankers further add that Darby Private Equity, an arm of Franklin Templeton is also in discussions with Kurlon. A statement from the company without declining to name any investors said that it is planning to raise capital through private equity. “The organisation is looking at raising funds to stimulate its expansion plans and double its manufacturing capacity in India. Presently the company is under negotiations with PE companies and is likely to announce the equity funding in few weeks,” the statement added.

Kurlon is looking at raising approximately Rs 2000.000 Millions from the funding from which 5-15 per cent will go to the PE company. The amount that will come from PE route will be spent on Kur-lon’s mattress business towards increasing manufacturing and workforce capacity for the future growth of the company. Additionally Kurlon has also applied for bank loans to fund the capex requirement.

Kurlon is one of the leading manufacturer of mattresses and furnishing products in India. Kurlon started business in 1962 and manufactures, supply and sell rubberised coir mattresses, foam mattresses and spring mattresses; polyurethane foam (PU foam); pillows, cushions and bolsters; home furniture and furnishing products, all under the brand name ‘Kurl-on’. The company currently has 6,380 dealers, 55 area sales offices and a workforce of 1,570 employees across India.

It is understood that Maha Rashtra Apex, an NBFC which ceased to operate during 1999 holds around 35 per cent stake while the rest is held by the promoters. The company has three manufacturing units in Bangalore, Gwalior and Bhubaneshwar and is understood to be churning out a million beds per annum.

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 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.54.89
UK Pound	1	Rs.83.66
Euro	1	Rs.70.58

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.