MIRA INFORM REPORT
|
Report No. : |
313894 |
|
Report Date : |
25.03.2015 |
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) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
09.02.1962 |
|
|
|
|
Com. Reg. No.: |
08-001443 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.148.826
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U17214KA1962PLC001443 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account 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
: |
Not Available |
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 3870000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established company having satisfactory track record. Profitability of the company seems to be low during 2014. However, general financial position of the company seems to be decent. However, trade relations are fair. Business is active. Payment terms are reported to be slow but 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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2014.
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 : |
|
|
Website : |
|
|
Area : |
5000 Sq. ft. |
|
Location : |
Leased |
|
|
|
|
Factory-1: |
Jalahalli, |
|
|
|
|
Factory-2: |
Dobbespet, Off. |
|
|
|
|
Factory-3: |
Plot No.: 88, Chandaka, B-Sector, Industrial Estate, |
|
|
|
|
Factory-4: |
Hosur, Dharmapuri District, |
|
|
|
|
Factory-5: |
Rubber |
|
Area : |
100000 Sq. ft. |
|
Location : |
Owned |
|
|
|
|
Zonal Office : |
Located at · Kolkata · Chennai ·
·
· Mumbai |
|
|
|
|
Coir Division Office : |
32/2451, A-2, |
|
|
|
|
South Centre 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 |
|
|
|
|
Sales Offices : |
Located at:
|
|
Tel. No. : |
91 – 80 – 22233212 ( |
DIRECTORS
AS ON 15.09.2014
|
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, |
|
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, |
|
Date of Birth/Age : |
26.04.1953 |
|
Qualification : |
B. E., Management Training from IIM, |
|
Date of Appointment : |
15.07.2014 |
|
Din No.: |
00043298 |
|
|
|
|
Name : |
Mr. Kumble Taranath Bhagath |
|
Designation : |
Director |
|
Address : |
Flat No.1, Prestinge
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 : |
Shaila Kalai Nayak |
|
Designation : |
Secretary |
|
Address : |
P1880, 1st Main, Brindavan Layout, 4th Cross,
Kavalbyrasandra, R T Naga, Bangalore –
560032, Karnataka, India |
|
Date of Birth/Age : |
25.06.1988 |
|
Date of Appointment : |
01.08.2014 |
|
PAN No.: |
AGHPN0541J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 15.09.2014
SHAREHOLDING DETAILS FILE ATTACHED
AS ON 15.09.2014
Equity Shares Break – up
|
Category |
|
Percentage |
|
Bodies Corporate |
|
91.58 |
|
Directors or relatives of directors |
|
2.00 |
|
Other top Fifty (50) Shareholders |
|
6.42 |
|
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 : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
Not Available |
||||||||
|
|
|
||||||||
|
Agencies Held : |
Not Available |
||||||||
|
|
|
||||||||
|
Exports : |
Not Available |
||||||||
|
|
|
||||||||
|
Imports : |
Not Available |
||||||||
|
|
|
||||||||
|
Terms : |
Not Available |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
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 : |
|
|
|
|
|
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 : |
Manipal Advertising Services Private Limited [U74300KA1991PTC011770] |
|
|
|
|
Subsidiary : |
Kurlon Enterprise Limited
[U36101MH2011PLC222657] |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25,000,000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14,882,605 |
Equity Shares |
Rs.10/- each |
Rs.148.826 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
148.826 |
148.826 |
148.826 |
|
(b) Reserves &
Surplus |
1204.678 |
1155.779 |
1155.426 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.349 |
|
Total Shareholders’ Funds
(1) + (2) |
1353.504 |
1304.605 |
1304.601 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
342.438 |
393.924 |
303.611 |
|
(b) Deferred tax
liabilities (Net) |
26.227 |
29.912 |
53.333 |
|
(c) Other long term
liabilities |
473.242 |
518.364 |
454.294 |
|
(d) long-term provisions |
5.192 |
3.049 |
4.073 |
|
Total Non-current
Liabilities (3) |
847.099 |
945.249 |
815.311 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1017.265 |
1248.113 |
924.997 |
|
(b) Trade payables |
637.924 |
690.704 |
770.098 |
|
(c) Other current
liabilities |
386.259 |
474.831 |
324.637 |
|
(d) Short-term provisions |
16.699 |
15.054 |
62.581 |
|
Total Current Liabilities
(4) |
2058.147 |
2428.702 |
2082.313 |
|
|
|
|
|
|
TOTAL |
4258.750 |
4678.556 |
4202.225 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
602.360 |
1451.053 |
950.585 |
|
(ii) Intangible Assets |
0.170 |
10.357 |
4.918 |
|
(iii) Capital
work-in-progress |
70.392 |
197.675 |
70.859 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
49.267 |
49.477 |
0.483 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
394.630 |
388.883 |
177.864 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.112 |
|
Total Non-Current Assets |
1116.819 |
2097.445 |
1204.821 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
927.608 |
1128.398 |
822.261 |
|
(c) Trade receivables |
599.386 |
1018.634 |
1723.496 |
|
(d) Cash and cash
equivalents |
229.481 |
214.183 |
222.595 |
|
(e) Short-term loans and
advances |
211.926 |
216.547 |
229.052 |
|
(f) Other current assets |
1173.530 |
3.349 |
0.000 |
|
Total Current Assets |
3141.931 |
2581.111 |
2997.404 |
|
|
|
|
|
|
TOTAL |
4258.750 |
4678.556 |
4202.225 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7011.504 |
7277.494 |
7237.251 |
|
|
|
Other Income |
|
31.073 |
28.679 |
|
|
|
TOTAL |
7011.504 |
7308.567 |
7265.930 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
|
3749.436 |
3527.764 |
|
|
|
Purchases of stock-in-trade |
|
681.766 |
867.807 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
|
(245.059) |
(131.549) |
|
|
|
Employee Related Expenses |
|
330.829 |
273.045 |
|
|
|
Extraordinary Items |
|
84.441 |
0.000 |
|
|
|
Other Expenses |
|
2445.360 |
2087.418 |
|
|
|
TOTAL |
6968.308 |
7046.773 |
6624.485 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
261.794 |
641.445 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
221.950 |
145.590 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
39.844 |
495.855 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
78.571 |
65.754 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
43.196 |
(38.727) |
430.101 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(5.703) |
(39.081) |
116.349 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
48.899 |
0.354 |
313.752 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD |
682.874 |
682.520 |
443.386 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
Nil |
Nil |
31.375 |
|
|
|
Dividend |
Nil |
Nil |
37.207 |
|
|
|
Tax on Dividend |
Nil |
Nil |
6.036 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO THE B/S |
731.773 |
682.874 |
682.520 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN CURRENCY |
|
|
|
|
|
|
F.O.B. Value of Exports |
9.884 |
6.601 |
NA |
|
|
|
TOTAL EARNINGS |
9.884 |
6.601 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.29 |
0.02 |
21.10 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin |
(%) |
0.70 |
0.00 |
4.34 |
|
|
|
|
|
|
|
Operating Profit Margin |
(%) |
NA |
3.60 |
8.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.04 |
-0.87 |
10.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
-0.03 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.00 |
1.26 |
0.94 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.53 |
1.06 |
1.44 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT/EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
148.826 |
148.826 |
148.826 |
|
Reserves & Surplus |
1155.426 |
1155.779 |
1204.678 |
|
Share Application money pending allotment |
0.349 |
0.000 |
0.000 |
|
Net worth |
1304.601 |
1304.605 |
1353.504 |
|
|
|
|
|
|
long-term borrowings |
303.611 |
393.924 |
342.438 |
|
Short term borrowings |
924.997 |
1248.113 |
1017.265 |
|
Total borrowings |
1228.608 |
1642.037 |
1359.703 |
|
Debt/Equity ratio |
0.942 |
1.259 |
1.005 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
7265.930 |
7308.567 |
7011.504 |
|
|
|
0.587 |
(4.065) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
7265.930 |
7308.567 |
7011.504 |
|
Profit |
313.752 |
0.354 |
48.899 |
|
|
4.32% |
0.00% |
0.70% |
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 |
No |
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
|
Particulars |
31.03.2014 Rs.
In Million |
31.03.2013 Rs.
In Million |
|
Short Term
Borrowing |
|
|
|
Loans from related parties |
20.575 |
24.326 |
|
Total |
20.575 |
24.326 |
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 - 41600 |
B38990172 |
|
2 |
10334892 |
10/02/2014 * |
300,000,000.00 |
THE RATNAKAR BANK LIMITED |
SHAHUPURI,KOLHAPUR,, KOLHAPUR, MAHARASHTRA - 41600 |
B96069273 |
|
3 |
10330443 |
09/04/2014 * |
230,000,000.00 |
DCB BANK LIMITED |
DCB BANK LIMITED, TOWER A, SENAPATI BAPAT MARG, L |
C04200093 |
|
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,
KA |
A83762716 |
|
6 |
10205422 |
01/03/2010 |
55,000,000.00 |
IDBI BANK LIMITED |
BANGALORE MAIN BRANCH,, IDBI HOUSE, NO.58, MISSIO |
A80057185 |
|
7 |
80007716 |
13/06/2014 * |
1,340,000,000.00 |
IDBI BANK LIMITED |
SPECIALISED CORPORATE BRANCH, NO 102, SHAKTHI COM |
C40661134 |
* Date of charge modification
PERFORMANCE
As per provisions of revised Schedule VI of the Companies Act, 1956, during the year the Company has faced a 3.44% decrease in gross sales of products at Rs.7416.188 Million as compared to Rs. 7680.120 Million of previous year and total income decreased by 3.86% from Rs.7296.462 Million to Rs. 7011.504 Million. The Profit before tax is Rs. 43.196 Million in the current year compared to the loss of Rs.38.727 Million of the previous year. The profit after tax is Rs.48.899 Million in 2013-14 compared to Rs.0.354 Million in 2012-13.
OPERATIONS:
This fiscal year was demanding from an operational perspective. The new foam plant at Jhagadia was integrated into operations and yields were improved. The new Fecken Kirfel Looper for manufacturing peeled foam for automotive and shoe applications was also commissioned during the year. They are also nearing project completion for the IPF bulk handling unit at the Jhagadia plant which will enable us to handle ultra-long length 30 meter PU foam blocks automatically and improve yield. This handling unit is expected to be commissioned in August 2014.
Product development efforts are underway in PU to provide both a peeled foam range as well as provide commodity foam which caters to the commodity end of the market. We are currently not represented in both these markets. They plan to have a wider basket of products available in PU foam for the next financial year. Sales focus in this category was on margins. Un-remunerative sales avenues which were not margin accretive were not pursued as a strategy.
In mattresses Kurlon continued to expand its product portfolio by introducing new products .e.g, Teensy a sandwich foam mattress was successfully launched and is gaining acceptance. Additional Product improvements and modifications were carried out across a range of products. Quality improvement initiatives were carried out in all the plants and across the range of mattresses based on analysis of warranty claims and feedback from the sales organization.
RETAIL OPERATIONS:
The retail division had achieved another mile stone by designing and building 137 operational stores till March 2014.
Efforts were focused in Retail operations to improve the economics of these outlets by further enhancing the exclusive product range they have through the introduction of mattress protectors as a new category.
Vigorous BTL activities and local advertising support were provided to these outlets to drive more footfalls through these stores.
A small store format for Tier 2 and 3 towns was planned and worked out keeping in mind the economics and logistics challenges of smaller markets. They will be pleased to note that the first such stores are planned to be launched in Aug 2014.
The current store count as on June 30th has gone up to 161 stores.
FUTURE OUTLOOK
The industry outlook, barring any lagged impact of a poor monsoon seems to be improving in both the major segments of mattress and PU foam that we operate in. They expect a 5-6% volume growth in both categories in the coming year.
In order to cater to this increasing demand, the company is focused on emerging opportunities and is taking several steps to increase its share. In mattresses they have changed our organizational sales structure from 4 Zones to 10 regions to provide better focus. In addition they are in the process of creating a small and dedicated team to address the Hotel and Hospitality Industry segment in which they are inadequately represented. Efforts are also on to be a preferred supplier to large International retailers which are entering the country.
For the PU segment, they now have a wider range of products which will enable us to address markets which they were unable to do so earlier. Additionally we are strengthening the distributor network in unrepresented geographies as well as strengthening the PU Foam Business, technical and sales teams through hiring external talent.
The Company has been awarded by many reputed organisation as detailed under:
· After trending the Indian Coir Industry for years, Kurlon re-asserts its ascendency by winning the award in Domestic Market Development of Rubberized Coir Products for the 17th year and the Export Performance Award
in Rubberized Coir Products. The award was presented by Prime Minister Shri Manmohan Singh and Shri Muniyappa, K.H. Union Minister of Micro, Small and Medium Enterprises (MSME) at VigyanBhavan in New Delhi.
· Association with ET Now and Super brands surely an acclaimed activity for year where ET Now channel made documentary on Kurlon’s journey so far. This special episode was aired in weekly series called, The Super brands Show in May 2014.
· Shreshtha Suraksha Puraskar’ award from National Safety Council of India (NSCI) for Kurlon Yeswanthpur manufacturing unit.
· Bhubaneshwar Manufacturing Unit also won a State Government award for Safety Measures.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Indian Economy and
Global Markets:
In 2013, India’s economic growth continued to be slow at 4.9% the stock markets mirrored the weak economic conditions towards the end of the financial year 2013-14. With signs of a possible political change, the dark clouds
seem to be lifting with hopes of improved growth on the horizon. They hope 2014-15 offers a improved growth and business environment
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 continuing preference for spring mattresses.
It is estimated that both the mattress and foam markets will grow at 5 to 6% per annum in quantity terms in 2013-14 with a correspondingly larger growth rate in value terms depending on inflation in raw material costs. They plan to grow at a higher rate than the industry growth rate and to further enhance their market share in the segments that we operate in.
The company has continued to expand the range of its mattress products and the reach of its distribution. Their dealer network is now in excess of 7000 dealers and exclusive Kurlon stores were 131 as on 31st March.
With regards to commercial foam, the current annual production in India is in the 130,000 to 140,000 MT per annum range. The company retained its position as the second largest player in this space. Per capita consumption of PU foam in India is continuing to grow but is about 20% of the global average, offering large headroom for growth.
MATTRESSES:
Rubberised Coir
Mattress Market
As a category this segment is shrinking as preferences change toward spring and foam mattresses categories. With focus and new products in this category this trend has been slowed as they have been able to offer more variety and better features in the RC mattress products.
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 their manufacturing capabilities to cater to this demand. They are in the process of launching new mattress to have complete coverage of all consumers in this segment.
Foam mattresses
They have again augmented our products and focused on increasing their presence in the predominantly foam markets of West and North India. This has started to show good results.
FURNITURE AND
FURNISHING:
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 their current business of mattresses. They continue to see a great opportunity to explore this market. They have tied up some OEM arrangements to supply to large companies to improve our capacity utilization. They are in the process of talking to some more OEM?s and the prospects of additional tie ups are bright.
KEY SUCCESS FACTORS
Distribution expansion in geographic areas with low or no market share. Profitable Expansion of franchisee model of business and providing exclusive range of products for KMXs to maintain exclusivity.
SEGMENT REPORTING:
The Company is predominantly engaged in the business of manufacture, purchase and sale of coir, foam and related products, which constitutes a single business segment. The Company has limited export sales and as such there are no reportable geographical segments. Hence Segment information as per the requirements of Accounting Standard 17-Segment Reporting is not required to be disclosed.
Fixed Assets:
Tangible Assets
- Land
- Building
- Plant and Machinery
- Computers
- Furniture and Fittings
- Office Equipments
- Vehicles
Intangible Assets
- 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.62.20 |
|
|
1 |
Rs.92.93 |
|
Euro |
1 |
Rs.68.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis don by: |
RAS |
|
|
|
|
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 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.