1. Summary Information

		Country	India
Company Name	KURLON LIMITED	Principal Name 1	Mrs. Jaya S. Pai
Fine	Satisfactory	Principal Name 2	Mr. Nitin Gajanan Rao Khot
		Registration #	--
Street Address	N-301, 3^rd Floor, North Block, Front Wing, Manipal Centre, 47, Dickenson Road, Bangalore – 560042, Karnataka , India
Established Date	09.02.1962	SIC Code	--
Telephone#	91-80-25595367/ 25597168/ 25597262	Business Style 1	Manufacturer, Importer and Exporter
Fax #	91-80-25587189	Business Style 2	--
Homepage	www.kurlon.com	Product Name 1	Rubberised Coir Products (such as Mattresses, Beds, Pillows etc.)
# of employees	Not Divulged	Product Name 2	--
Paid up capital	Rs.148,826,050/-	Product Name 3	--
Shareholders	Bodies Corporate –91.56% Directors or relatives of directors-2.65% Other top fifty (50) shareholders-.75% Others – 2.04%	Banking	The Ratnakar Bank Limited
Public Limited Corp.	--	Business Period	52 years
IPO	---	International Ins.	-
Public Enterprise	---	Rating	Ba (45)
Related Company
Relation --	Country --	Company Name	--
Subsidiary		Kurlon Enterprise Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1838,220,000	Current Liabilities	704,505,000
Inventories	1,128,397,000	Long-term Liabilities	1675,379,000
Fixed Assets	1461,307,000	Other Liabilities	990,587,000
Deferred Assets	0	Total Liabilities	3,370,471,000
Invest& other Assets	247,152,000	Retained Earnings	1155,779,000
		Net Worth	1304,605,000
Total Assets	4,675,076,000	Total Liab. & Equity	4,675,076,000
Total Assets (Previous Year)	4,202,224,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	7277,494,000	Net Profit	354,000
Sales(Previous yr)	7,237,251,000	Net Profit(Prev.yr)	313,752,000

0MIRA INFORM REPORT

Report Date :

29.03.2014

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) :	31.03.2013
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
TAN No.:	BLRK00278F
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 :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 5300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track record. Profitability of the company seems to be low during 2013. However, the rating takes into consideration the company’s long and successful track record, brand strength and leadership position in the Indian matters market and its wide spread distribution network across the country. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan - BBB+
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Rating	Non Fund based limit (A2+)
Rating Explanation	The above average credit quality. It carry higher credit risk.
Date	06.04.2012

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.

INFORMATION DENIED

Management Non Co-operative

Contact No.: 91-80-40313131

LOCATIONS

Registered/ Corporate 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 bgr.ho@kurlon.org tvpai13@yahoo.com
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 · 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
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 30.09.2013

Name :	Mrs. Jaya Sudhakar Pai
Designation :	Managing Director
Address :	No. 5, Chitrakala, Ananthanagar, Manipal – 576119, Karnataka, India
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, Belgaum – 590016, Karnataka, India
Date of Birth/Age :	10.09.1948
Qualification :	Degree
Date of Appointment :	22.10.1994
Din No.:	00030613
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 :	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
Name :	Mr. Kumble Taranath Bhagath
Designation :	Director
Address :	No. 47, Shashikiran Apartments, Flate No.607, 18^th Floor, Cross, Malleshwaram, Bangalore – 460003, Karnataka, India
Date of Birth/Age :	24.07.1927
Qualification :	Degree
Date of Appointment :	13.09.1984
Din No.:	00057971

KEY EXECUTIVES

Name :	Mrs. Sunanda Bhattacharya
Designation :	Secretary
Address :	Flat No. 4A, Block A2, P-42, Motijheel, 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 Shares Break – up

Category	Percentage
Bodies Corporate	91.56
Directors or relatives of directors	2.65
Other top Fifty (50) 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 polyurethan foam

Product :

Product Code	Product Description
39211310	PU Foam
94036000	Furniture
94042920	Rubberised C O I R Mattresses, Cushions And Pillows

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· Development Credit Bank Limited, Bangalore Branch No.128, (31/1), Prestige Meridian Annexe, M.G. Road, Bangalore - 560001, Karnataka, India

· The Ratnakar Bank Limited, Shahupuri, Kolhapur - 416001, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2013	31.03.2012
Long Term Borrowing
Term Loans from Banks Secured	391.785	300.722
Other Loans and Advances Secured	2.138	2.889
Short Term Borrowing
Loans Repayable on Demand Secured	1049.749	886.775
Foreign Currency Term loan from others	207.381	37.429
Total	1651.053	1227.815

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 :	Maha Rashtra Apex Corporation Limited (L85110KA1943PLC001177) Manipal Infrastructure Limited (U70102KA2011ULL056471)
Subsidiary :	Kurlon Enterprise Limited (U36101MH2011PLC222657)

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	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	148.826
(b) Reserves & Surplus	1,155.779
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1,304.605
(3) Non-Current Liabilities
(a) long-term borrowings	393.923
(b) Deferred tax liabilities (Net)	29.912
(c) Other long term liabilities	518.259
(d) long-term provisions	3.049
Total Non-current Liabilities (3)	945.143
(4) Current Liabilities
(a) Short term borrowings	1,281.456
(b) Trade payables	686.402
(c) Other current liabilities	442.416
(d) Short-term provisions	15.054
Total Current Liabilities (4)	2,425.328
TOTAL	4,675.076
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,451.054
(ii) Intangible Assets	10.253
(iii) Capital work-in-progress	197.675
(iv) Intangible assets under development	0.000
(b) Non-current Investments	49.477
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	384.399
(e) Other Non-current assets	0.000
Total Non-Current Assets	2,092.858
(2) Current assets
(a) Current investments	0.000
(b) Inventories	1,128.397
(c) Trade receivables	1,018.634
(d) Cash and cash equivalents	215.166
(e) Short-term loans and advances	220.021
(f) Other current assets	0.000
Total Current Assets	2,582.218
TOTAL	4,675.076

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		148.826	148.729
2] Share Application Money		0.000	0.097
3] Reserves & Surplus		1155.424	884.915
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1304.250	1033.741
LOAN FUNDS
1] Secured Loans		1190.386	559.980
2] Unsecured Loans		38.222	0.793
TOTAL BORROWING		1228.608	560.773
DEFERRED TAX LIABILITIES		53.333	46.455
DEFFERED GOVERNMENT GRANT		0.350	0.909
TOTAL		2586.541	1641.878
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		955.504	887.467
Capital work-in-progress		70.859	4.877
INVESTMENT		0.483	0.483
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	822.260	654.398
	Sundry Debtors	1723.496	808.621
	Cash & Bank Balances	222.594	135.960
	Other Current Assets	0.112	0.022
	Loans & Advances	406.916	253.052
Total Current Assets		3175.378	1852.053
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	779.780	613.934
	Other Current Liabilities	767.358	421.793
	Provisions	68.545	67.274
Total Current Liabilities		1615.683	1103.001
Net Current Assets		1559.695	749.052
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		2586.541	1641.879

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	7277.494	7237.251	5206.016
		Other Income	31.073	28.679	50.768
		TOTAL	7308.567	7265.930	5256.784
Less	EXPENSES
		Consumption Materials Changes Inventories	3749.436	3527.764	2750.738
		Purchases of stock-in-trade	681.766	867.807	303.029
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(245.059)	(131.549)	(84.517)
		Employee Related Expenses	330.829	273.045	214.399
		Other Expenses	2445.360	2087.418	1578.752
		TOTAL	6962.332	6624.485	4762.401
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		346.235	641.445	494.383
Less	FINANCIAL EXPENSES		221.950	145.590	59.173
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		124.285	495.855	435.210
Less/ Add	DEPRECIATION/ AMORTISATION		78.571	65.754	55.158
	PROFIT BEFORE TAX, EXTRAORDINARY ITEMS		45.714	430.101	380.052
Less	EXTRAORDINARY ITEMS		84.441	0.000	0.000
	PROFIT BEFORE TAX		(38.727)	430.101	380.052
Less	TAX		(39.081)	116.349	94.498
	PROFIT AFTER TAX		0.354	313.752	285.554
	Earnings Per Share (Rs.)		0.02	21.10	19.19

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.00	4.32	5.44
Net Profit Margin (PBT/Sales)	(%)	(0.53)	5.94	7.30
Return on Total Assets (PBT/Total Assets}	(%)	(0.87)	10.41	10.60
Return on Investment (ROI) (PBT/Networth)		0.03	0.33	0.37
Debt Equity Ratio (Total Debt/Networth)		1.28	0.94	0.37
Current Ratio (Current Asset/Current Liability)		1.06	1.96	1.80

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	5,206.016	7,237.251	7,277.494
		39.017	0.556

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	5,206.016	7,237.251	7,277.494
Profit After Tax	285.554	313.752	0.354
	5.49%	4.34%	0.00%

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	No
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.

UNSECURED LOANS

(Rs. In Millions)

Particulars	31.03.2013	31.03.2012
Short Term Borrowing
Loans and Advances from others	24.326	0.793
Total	24.326	0.793

PERFORMANCE

As per provisions of revised Schedule VI of the Companies Act, 1956, during the year the Company has achieved a 2.63% increase in gross sales of products at Rs.7680.120 Millions as compared to Rs. 7482.969 Millions of previous year and total income raised by 0.59% from Rs.7265.930 Millions to Rs.7308.567 Millions. The Loss before tax is Rs. 38.727 Millions in the current year compared to the profit of Rs. 430.104 Millions of the previous year. The profit after tax is Rs.0.354 Millions in 2012-13 compared to Rs.3131.735 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 nonperforming products were phased out gradually. In the current fiscal year, Kurlon continued to expand its product portfolio by introducing several new products in all the three mattress categories, i.e. Rubberized 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 market requirements in mind. 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 had achieved a mile stone by designing and building 100 operational stores till March 2013.The company has come up with exclusive product range for Mattress Xpress in category of mattress and pillows and plans to increase the range by adding comforters, bed-sheets, Mattress and pillow- protectors to increase the product range. These EBO (Exclusive Business Outlet) showcases all Their Kurlon products only. In the year 2012-13, we went till extent of appointing KMX in Tier II and III as these towns are becoming a happening place. In the way forward, the cumulative number of signups until FY 2013-14 is expected to be 250 KMXs out of which200 KMXs are expected to begin full operations. The end consumers are now aware of the Franchisee and we are confident of reaching all towns having population of 0.500 million plus by this year end.

FUTURE OUTLOOK

Despite the looming global recession and domestic listless economy, the future prospects for Business in the Home Comforts Industry are not disturbed much. With better awareness and media penetration customer everywhere are also catching up very fast with lifestyle changes of modern world. 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 automation of plant in Gujarat apart from enhancements in Yeshwantpur and Dabaspet. This should be sufficient to meet the demands of the customers for the next 3-5years.

This increase in capacities will also be augmented with a ramp-up in the geographical coverage both with increase in Area Sales Offices and dealer network. We estimate that in the next 1-2 years we will be able to increase the number of towns we serve by 50-60%, thereby giving success 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 2012, Indi as economic growth has slowed to 5 percent and the stock markets mirrored the weakening economic conditions. Agriculture and Services sectors continue to perform well. 2.7 % growth in Agro sector forecast. Services sector grows by 6.3%its share in GDP continues to beat 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 10.9%. 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)Global growth is projected to remain subdued at slightly above 3 percent in 2013, the same as in 2012. This is less than forecast in the April 2013World Economic Outlook (WEO) , driven to a large extent by appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as a more protracted recession in the euro area. Downside risks to global growth prospects still dominate: while old risks remain, new risks have emerged, including the possibility of a longer growth slowdown in emerging market economies, especially given risks of lower potential growth, slowing credit, and possibly tighter financial conditions if the anticipated unwinding of monetary policy stimulus in the United States leads to sustained capital flow reversals. Stronger global growth will require additional policy action. Specifically, major advanced economies should maintain a supportive macroeconomic policy mix, combined with credible plans for reaching medium-term debt sustainability and reforms to restore balance sheets and credit channels. Many emerging market and developing economies face a tradeoff between macroeconomic policies to support weak activity and those to contain capital outflows (www.imf.org)

Industry Structure and Development:

The company is not only the largest mattress manufacturer and marketer in India, but also a key player in the furniture, furnishings and commercial foam. Traditionally, Indian branded 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 we estimate that we will be in a dominant position as we 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 aper capita 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 the 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:

Rubberised Coir Mattress Market

At the outset we plan to hold on to existing markets and intend to penetrate TIER 3 and TIER 4 and untapped markets with new and innovative products which are competitively priced and uncompromised quality. The rubberized coir mattress market continues to dominate the organized mattress sector.

Spring Mattress Market

The spring mattress market has seen exponential growth which is fuelled by changes in customer expectation, experience and affordability. They have understood these changes and expanded manufacturing capabilities to cater to this demand.

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.50.47 Crores 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:

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 current business of mattresses. We see a great opportunity to explore this market. They guarantee to give not only good quality product with better innovative designs but also very effective after sales service.

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 products are priced right so that bottom line is maintained and channel partners make their margins. We are proposing to channel their products through Franchisees as well.

Key success factors

1. Aggressive foray into interior markets and channel expansion helped increase its market share.

2. Rapid Expansion of franchisee model of business and providing exclusive range of products for KMXs to maintain exclusivity.

3. Training and upgrading the trade to sell Kurlon mattress to every customer.

4. Widening the range of offerings to customers of all categories.

5. Aggressive marketing and promotional consumer campaigns which creates demand and pull for products.

6. Improvising, monitoring, streamlining and rationalizing of systems and procedures.

7. Careful planning and deployment of resources and an effective reviewing mechanism.

Business Concerns

1. Increase in number of new players because of no entry barriers

2. Increase in Raw Material and Input costs

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
Charge identification (ID) number of the charge to be modified	10334892
Type of charge	Immovable Property Movable Property
Particular of charge holder	The Ratnakar Bank Limited
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation and Memorandum of Entry
Date of instrument Creating the charge	10.02.2014
Amount secured by the charge	Rs.30.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 1.50% p.a Terms of Repayment Repayment to commence from end of the month of first disbursement. Repayment to be done in 30 equal installments of Rs.3.333 millions each Margin Nil Extent and Operation of the charge All present and future movable fixed assets of the Borrower lying or stored in the Borrower's factories, premises and godowns, or any other places, particularly plant and machinery, equipments, furnitures and fixtures, equipments, computer, vehicles, whether installed in the factory shed or not etc. Movable fixed assets including plant and machinery located at plot no.7, KIADB Industrial Area, Dabaspet, Bangalore-562211. Others NA
Short particulars of the property charged	All That Piece And Parcel Of Propertybearing No.7 Of Dobaspet Indusrial Area, Comprised And Carved Out Of Land Bearing Number 106 & 107, Situated At Yedehalli Village, Somapura Hobli, Nelamangala Tal All That Piece And Parcel Of Plot Nos. 22 & 23 Of Dobaspet Indusrial Area Yedehalli Village, Somapura Hobli, Nelamangala Taluk, Bangalore District All That Part And Parcel Of Land And Building Consisting Plot No.49 In Survey No.34, In 3rd Phase, Peenya Industrial Area, Chokkasandra Village, Yeshwanthpura Hobli, Banglaore Movable Fixed Assets Including Plant & Machinery Located At Plot No. 7, Kiadb Industrial Area, Dabaspet, Bangalore- 562211

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.61.05
UK Pound	1	Rs.100.81
Euro	1	Rs.84.18

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	SNT

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	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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		45

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.