Kurlon Limited Unlisted Shares

KURLON Limited

Kurl-on Ltd (old name – Karnataka Consumer Products Ltd), subsidiary of Maha Rashtra Apex Corporation Ltd (38.25% stake) was incorporated in Year 1962. Kurlon Ltd undertakes its manufacturing /Distribution of Rubberized coir, Latex Foam, Polyurethane foam, Pillows, Spring Mattresses, Furniture, Furnishing etc under brand name “Kurlon”.Kurlon Ltd with total mattress sale of Rs 600+ Crs as on March 2017 enjoys a market share of 35% to 40%.

Financial Highlights – (Fig in Crs.) Annual Report 2017 – Kurlon Ltd

Particulars	Standalone		Consolidated
Particulars	2017	2016	2017	2016
Total Income	100	81	963	824
PAT	6	8	56	42
EPS	3.93	5.69	37.55	28.34
Equity	14.88	14.88	14.88	14.88
Face value	10	10	10	10
Book value	108.74	104.81	233.90	196.98

SUBSIDIARY COMPANY: KURLON ENTERPRISE LTD

Kurl-on Ltd incorporated a subsidiary company Kurlon Enterprises Ltd in 2011. In 2014 Kurlon Ltd undertook a business transfer agreement in which it transferred its business (including assets, liabilities, contracts and licenses) of Rubberized Coir, Latex Foam, Polyurethane Foam, Pillows, Spring Mattresses, Furniture, Furnishing, and related products were transferred to Kurlon Enterprise Ltd. Buy Kurlon Limited Unlisted share.

Kurlon Enterprises Ltd sells its products under the flagship brand name “Kurlon” along with sub-brands i.e Bounty, Fantasy, Grandeur, Klassic, Mermaid, Ortho, Panacea, Relish, SpineKare, etc

Top 3 Shareholders of Kurlon Enterprise Ltd– As on 31/3/2017

Shareholder	% Holding
Kurlon Ltd	82.31%
India Business Excellence Fund IIA	10.47%
India Business Excellence Fund II	5.89%

Arms Securities Pvt Ltd Selling Kurlon Limited shares on best price in Delhi, Mumbai, Bangluru, India. Kurlon share Price.

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Kurlon Enterprise Limited Unlisted Share – Company Overview

Kurlon Enterprise Limited was established in 2011. It is a subsidiary company of Kurlon Limited. Kurlon Limited is the innovator of coir mattresses in India and it offers a wide range of comfort solutions for retail as well as institutional clients.

When Kurlon Enterprise was created, A business agreement between Kurlon Enterprise Limited and Kurlon Limited was being done. According to the agreement, the business rubberized coir, latex foam, polyurethane foam, pillows, spring mattresses, furniture, furnishing, and related products were transferred to Kurlon Enterprise Limited with effect from 1st April 2014.

Kurlon Enterprise Limited is now the operating company. It is headquartered in Bengaluru. The company is now manufacturing mattresses in 126 different configurations. Kurlon Enterprise Limited boasts its network of more than 10,000 dealers, 72 branches, and stock points across India. The company also has 12 manufacturing facilities across Karnataka, Orissa, Madhya Pradesh, Uttaranchal, and Gujarat. Every minute, about 5 homes in India buy a Kurlon Mattress.

Kurlon Enterprise Limited Share is available on unlisted share market. Kurlon share price used to change on daily basis. It keeps fluctuating regularly.

Kurlon Share price Details as of March 31, 2022

Kurlon Enterprise Outstanding Shares:	36,552,261
Face Value of Kurlon Enterprise Unlisted Share:	Rs. 5 Per Equity Share
ISIN of Kurlon Enterprise Limited Unlisted Share:	INE387W01025
Lot Size of Kurlon Enterprise Limited Unlisted Share:	100 Shares
Kurlon Enterprise Share Price:	Best in Industry
PAN Number of Kurlon Enterprise Limited:	AAECK5045N

Incorporation Details of Kurlon Enterprise Limited

Kurlon Enterprise Limited CIN Number	U36101MH2011PLC222657

Kurlon Enterprise Limited Registration Date	03-Oct-2011

Category / Sub-Category of Kurlon Enterprise	Company limited by Shares

Kurlon Enterprise Registered Office Address	No. 1002/1006, The Avenue, International Airport Road, Opp. Hotel Leela, Andheri East, Mumbai – 400059


Kurlon Enterprise Registrar & Transfer Agent Address and Contact Details	Purva Share Gistry India Limited 9, Shiv Shakti Industrial Estate, J.R. Boricha Marg, Opp. Kasturba Hospital Lane, Lower Parel East, Mumbai-400011

Board of Directors of Kurlon Enterprise Limited

Mr. T. Sudhakar Pai, Managing Director

Mrs. Jaya S. Pai, Non-Executive Non Independent Director

Sri. H. N. Shrinivas, Independent Director

Sri. Sivaramakrishnan Nagarajan, Independent Director

Mrs. Jy othi Ashish Pradhan, Chief Executive Officer

Mr. Jamsheed Minoo Panday, Non-Executive Non Independent Director

Mr. Monu Kumar, Company Secretary

Principal Business Activities of Kurlon Enterprise Limited

Name and Description of main products/services	NIC Code of the product/service	% to total turnover of the Company
Mattresses/Pillows/Foam/Sofa & furniture	31005	97.18%

Particulars of Subsidiary and Associate Companies of Kurlon Enterprise Limited

S.No.	Name of the Company	Holding/Subsidiary/Associate	% of shares held
1.	Kurlon Retail Limited	Subsidiary	100
2.	Sevalal Solar Private Limited	Subsidiary	93.80
3.	Sirar Dhotre Private Limited	Subsidiary	93.80
4.	Sirar Solar Private Limited	Subsidiary	93.80
5.	Belvedore Internaonal Limited	Subsidiary	100
6.	Komfort Universe Products and Services Limited	Subsidiary	100
7.	Starship Value chain and Manufacturing Private Limited	Subsidiary	100
8.	Kanvas Concepts Private Limited	Subsidiary	100
9.	Home Komfort Retail LLP	Subsidiary	100
10.	Starship Global VCT LLP	Subsidiary	100

Shareholding Pattern of Kurlon Enterprise Limited (As on 31-03-2022)

S. No.	Shareholders’ Name	No. of Shares	% of total Shares of the company
1.	Kurlon Limited	3,09,24,115	84.600%
2.	Tonse Sudhakar Pai	347	0.005%
3.	Jaya Sudhakar Pai	347	0.005%
4.	Others	56,27,452	15.390%
	Total	3,65,52,261	100.00%

Kurlon Enterprise Limited Balance Sheet (Amt. in Lakhs)

Particulars	31-03-2024	31-03-2023
ASSETS
Non-current assets
Property, plant and equipment	25,073.09	18,905.74
Right-of-use assets	4,722.05	6,063.82
Capital work-in-progress	55.15	98.26
Goodwill	–	2,103.16
Other Intangible assets	124.04	132.34
Loans	–	2.28
Other financial assets	1266.03	2954.34
Non current tax assets (net)	1368.56	2,382.39
Other non-current assets	27.36	1510.85
Current assets
Inventories	9,001.11	8,049.43
Investments	1027.82	1602.3
Trade receivables	6889.17	5529.89
Cash and cash equivalents	280.09	345.97
Bank balances other than cash and cash equivalents	225.86	164.26
Other financial assets	67.69	15590.09
Other current assets	2977.38	10270.8
Total assets	53,105.40	75715.92
EQUITY AND LIABILITIES
Equity share capital	1,827.62	1,827.62
Other equity	26,545.76	45,176.24
Equity attributable to shareholders of the Holding Company	28,373.38	47,003.86
Non-controlling interests	–	-15.69
Non-current liabilities
Borrowings	–	59.32
Lease liabilities	3135.63	3,911.16
Other non current financial liabilities	5484.94	5835.60
Provisions	723.42	446.45
Deferred tax liabilities (Net)	92.37	600.83
Current liabilities
Borrowings	15.20	1668.13
Lease liabilities	1,048.76	1,346.50
Trade payables
Total outstanding dues of micro enterprises and small enterprises	100.03	313.09
Total outstanding dues of creditors other than micro enterprises and small enterprises	11,780.33	11,025.04
Other financial liabilities	647.63	1,073.27
Provisions	863.29	706.35
Current tax liabilities (net)	84.99	684.1
Other current liabilities	757.43	1,057.91
Total equity and liabilities	53,105.40	75715.92

Kurlon Enterprise Limited Profit & Loss Statement (Amt. in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operation	81,986.05	85,889.51
Other Income	871.54	842.55
Total Revenue	82,857.59	86,732.06
Cost of Materials Consumed	39,336.19	37930.92
Purchase of Stock in trade	7644.26	9,181.32
Changes in inventories of finished goods, WIP and Stock in trade	-132.66	1627.12
Other manufacturing expenses	5428.84	5031.59
Employee Benefits Expenses	7888.37	7002.44
Finance Costs	572.96	729.03
Depreciation and Amortization Expenses	2,531.33	3,590.98
Other Expenses	22952.30	20846.95
Total Expenses	86,221.59	85,940.35
Profit /(Loss) before Tax	-3,363.99	791.71
Exceptional items	2,111.47	–
Profit /(Loss) before tax from continuing operations	-5,475.46	791.71
Current tax	163.57	824.35
Tax expenses related to earlier years	–	-45.45
Deferred Tax	-517.46	-1,033.85
Profit / (Loss) for the period	-5,121.57	1,046.66
Other comprehensive income (net of tax)
Items that will not be reclassified to profit or loss
Remeasurements gain / (loss) of the net defined benefit plans	-296.37	-27.77
Income tax on above item	-9.99	10.35
Total Other comprehensive income/ (loss) (net of tax)	-306.36	-17.42
Total comprehensive income for the year	-5,427.93	1,029.24

Kurlon Enterprise Limited Consolidated Cash Flow Statement (Amt. in Lakhs)

Particulars	31-03-2024	31-03-2023
CASH FLOW FROM OPERATING ACTIVITES
Profit before Tax	-5475.46	791.71
Adjustments for:
Depreciation and amortisation expense	2531.33	3590.98
Finance costs	478.31	527.01
Advances to suppliers written oﬀ	4.78	1.42
Liabilities/provisions no longer required written back	-526.69	-59.5
Provision for doubtful advances	–	276.68
Provision for expected credit loss	18.17	73.78
Provision for warranty	237.12	363.07
Advances/Balances written oﬀ	1,870.14	–
Bad debts written oﬀ	10.37	25.44
Fair value (gain) / loss on investments (net)	-15.39	511.28
(Profit) / Loss on sale of investments (net)	-26.1	-491.04
(Profit) / Loss on sale of property, plant and equipment (net)	1,528.46	304.19
Gain on early termination of lease	-166.94	-72.93
Net Loss on Foreign Currency	3.43	–
Goodwill written oﬀ	2,103.16	–
Rental Income	-7.8	–
Interest income	-39.9	-149.59
Operating Profit before Working Capital Charges	2526.99	5692.50
Changes in working capital:
Decrease / (Increase) in Inventories	-951.68	3964.60
Decrease / (Increase) in loans and trade receivables	-1375.54	389.52
Decrease / (Increase) in other financial and non-financial assets	4817.39	-22801.30
Increase / (Decrease) in trade payables	593.99	-657.35
Increase / (Decrease) in other financial liabilities, non-financial liabilities and provisions	-660.72	-149.68
Cash generated from operations	4950.43	-13561.71
Income taxes paid (net of refunds)	260.14	-774.71
Net cash ﬂows from operating activities (A)	5210.57	-14,336.42
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and change in capital work in progress	-6,357.28	-611.22
Proceeds from sale of property, plant and equipment	494.22	1,319.18
Capital Advances (paid)/ received	1,483.49	638.19
Investment in mutual funds (net)	615.97	9,086.00
Reduction of reserves on sale of subsidiaries	266.39	–
Bank deposits (Investment)/Redemption	-61.6	4,085.74
Rental income received (short term lease)	7.8	–
Interest income received	39.9	190.09
Net Cash Flow from Investing Activities	-3,511.12	14707.98
CASH FLOW FROM FINANCING ACTIVITIES
Net (repayment of)/proceeds from short-term borrowings	-1,714.25	971.01
Payment of lease liabilities (principal and interest)	-1,416.08	-790.87
Finance costs	-80.11	-529.65
Dividend paid	-658.05	-183.08
Net cash ﬂows from/(used in) ﬁnancing activities	-3,868.49	-532.59
Net increase / (decrease) in cash and cash equivalents	-2,169.03	-161.03
Cash and cash equivalents at the beginning of the year	345.97	507
Cash and cash equivalents at the end of the year	-1,823.07	345.97

Let ‘s break down the Cash Flow Statement for the years 2024 and 2023, activity-wise:

Cash Flows from Operating Activities

Profit before Tax

31-03-2024: -5475.46 / 31-03-2023: 791.71 A significant loss before tax in 2024 compared to a profit in 2023.

Adjustments for Non-Cash and Other Items

These adjustments reconcile net income to the cash generated or used in operations, accounting for items that affect reported profits but not cash.

Depreciation and Amortization Expense

31-03-2024: 2531.33 / 31-03-2023: 3590.98 non-cash expense added back to net income.

Finance Costs

31-03-2024: 478.31 / 31-03-2023: 527.01 Added back as these are financing costs.

Advances to Suppliers Written Off

31-03-2024: 4.78 / 31-03-2023: 1.42 non-cash expense indicating funds previously advanced to suppliers were written off.

Liabilities/Provisions No Longer Required Written Back

31-03-2024: -526.69 / 31-03-2023: -59.5 Reduction in liabilities or provisions, increasing cash flow.

Provision for Doubtful Advances

31-03-2024: – / 31-03-2023: 276.68 Added back as it ‘s a non-cash provision in 2023.

Provision for Expected Credit Loss

31-03-2024: 18.17 / 31-03-2023: 73.78 non-cash expense added back.

Provision for Warranty

31-03-2024: 237.12 / 31-03-2023: 363.07 non-cash provision added back.

Advances/Balances Written Off

31-03-2024: 1870.14 / 31-03-2023: – non-cash write-off added back in 2024.

Bad Debts Written Off

31-03-2024: 10.37 / 31-03-2023: 25.44 non-cash write-off added back.

Fair Value (Gain) / Loss on Investments (Net)

31-03-2024: -15.39 / 31-03-2023: 511.28 Gain subtracted and loss added back.

(Profit) / Loss on Sale of Investments (Net)

31-03-2024: -26.1 / 31-03-2023: -491.04 Gain subtracted and loss added back.

(Profit) / Loss on Sale of Property, Plant and Equipment (Net)

31-03-2024: 1528.46 / 31-03-2023: 304.19 Loss added back and gain subtracted.

Gain on Early Termination of Lease

31-03-2024: -166.94 / 31-03-2023: -72.93 Gain subtracted.

Net Loss on Foreign Currency

31-03-2024: 3.43 / 31-03-2023: – Added back as it ‘s a non-cash loss.

Goodwill Written Off

31-03-2024: 2103.16 / 31-03-2023: – non-cash write-off added back in 2024.

Rental Income

31-03-2024: -7.8 / 31-03-2023: – Subtracted as its non-operating income.

Interest Income

31-03-2024: -39.9 / 31-03-2023: -149.59 Subtracted as its non-operating income.

Operating Profit before Working Capital Changes

31-03-2024: 2526.99 / 31-03-2023: 5692.50 Adjusted profit indicating cash generated before working capital changes.

Changes in Working Capital

Changes in working capital reflect the movement in current assets and liabilities affecting cash flow.

Decrease / (Increase) in Inventories

31-03-2024: -951.68 / 31-03-2023: 3964.60 Increase in inventory reduces cash flow, while a decrease improves it.

Decrease / (Increase) in Loans and Trade Receivables

31-03-2024: -1375.54 / 31-03-2023: 389.52 Increase in receivables reduces cash flow, while a decrease improves it.

Decrease / (Increase) in Other Financial and Non-Financial Assets

31-03-2024: 4817.39 / 31-03-2023: -22801.30 A significant decrease in other assets improves cash flow in 2024, while a substantial increase in 2023 reduces it.

Increase / (Decrease) in Trade Payables

31-03-2024: 593.99 / 31-03-2023: -657.35 Increase in payables improves cash flow, while a decrease reduces it.

Increase / (Decrease) in Other Financial Liabilities, Non-Financial Liabilities, and Provisions

31-03-2024: -660.72 / 31-03-2023: -149.68 Decrease in liabilities and provisions reduces cash flow.

Cash Generated from Operations

31-03-2024: 4950.43 / 31-03-2023: -13561.71 Significant improvement in cash generated from operations in 2024 compared to a large outflow in 2023.

Income Taxes Paid (Net of Refunds)

31-03-2024: 260.14 / 31-03-2023: -774.71 Positive cash flow from tax refunds in 2024 compared to tax payments in 2023.

Net Cash Flows from Operating Activities (A)

31-03-2024: 5210.57 / 31-03-2023: -14336.42 Positive net cash flow in 2024 compared to a significant outflow in 2023.

Cash Flows from Investing Activities

Purchase of Property, Plant and Equipment and Change in Capital Work in Progress

31-03-2024: -6357.28 / 31-03-2023: -611.22 Significant cash outflow for capital expenditures in 2024 compared to 2023.

Proceeds from Sale of Property, Plant and Equipment

31-03-2024: 494.22 / 31-03-2023: 1319.18 Cash inflow from asset sales, lower in 2024 compared to 2023.

Capital Advances (Paid) / Received

31-03-2024: 1483.49 / 31-03-2023: 638.19 Positive cash flow from advances in 2024 compared to 2023.

Investment in Mutual Funds (Net)

31-03-2024: 615.97 / 31-03-2023: 9086.00 Positive cash flow from mutual fund investments in both years, significantly higher in 2023.

Reduction of Reserves on Sale of Subsidiaries

31-03-2024: 266.39 / 31-03-2023: – Positive cash flow from the sale of subsidiaries in 2024.

Bank Deposits (Investment) / Redemption

31-03-2024: -61.6 / 31-03-2023: 4085.74 Cash flow from bank deposits shows a small outflow in 2024 compared to a significant inflow in 2023.

Rental Income Received (Short Term Lease)

31-03-2024: 7.8 / 31-03-2023: – Positive cash flow from rental income in 2024.

Interest Income Received

31-03-2024: 39.9 / 31-03-2023: 190.09 Positive cash flow from interest income in both years, higher in 2023.

Net Cash Flow from Investing Activities

31-03-2024: -3511.12 / 31-03-2023: 14707.98 Net cash outflow in 2024 compared to a significant inflow in 2023 due to various investing activities.

Cash Flows from Financing Activities

Net (Repayment of) / Proceeds from Short-Term Borrowings

31-03-2024: -1714.25 / 31-03-2023: 971.01 Cash outflow from repaying borrowings in 2024 compared to an inflow from borrowings in 2023.

Payment of Lease Liabilities (Principal and Interest)

31-03-2024: -1416.08 / 31-03-2023: -790.87 Cash outflow for lease payments in both years, higher in 2024.

Finance Costs

31-03-2024: -80.11 / 31-03-2023: -529.65 Cash outflow for financing costs in both years, lower in 2024.

Dividend Paid

31-03-2024: -658.05 / 31-03-2023: -183.08 Cash outflow for dividends paid, higher in 2024.

Net Cash Flows from / (Used in) Financing Activities

31-03-2024: -3868.49 / 31-03-2023: -532.59 Significant cash outflow in 2024 compared to a smaller outflow in 2023.

Net Increase / (Decrease) in Cash and Cash Equivalents

31-03-2024: -2169.03 / 31-03-2023: -161.03 Overall decrease in cash and cash equivalents in both years, much larger in 2024.

Cash and Cash Equivalents at the Beginning and End of the Year

Beginning of the Year

31-03-2024: 345.97 / 31-03-2023: 507

End of the Year

31-03-2024: -1823.07 / 31-03-2023: 345.97

The end-of-year cash position shows a negative balance in 2024, indicating an overdraft or deficit situation compared to a positive balance in 2023.

Financial Ratios of Kurlon Enterprise Limited

Particulars	2023
Current ratio	2.46
Debt equity ratio	0.03
Debt service coverage ratio	-8.38
Return on equity ratio	-0.03
Inventory turnover ratio	4.97
Trade receivable turnover ratio	14.90
Trade payable turnover ratio	6.11
Net capital turnover ratio	3.42
Net profit ratio	-0.02
Return on capital employed	-0.03
Return on investment	0.06

Insight of the financial ratios of Kurlon Enterprise Limited for March 31, 2023

Current Ratio:

It decreased from 2.54 in 2022 to 2.46 in 2023, indicating a slight reduction in the company ‘s short-term liquidity. However, the ratio still suggests that the company has more than enough current assets to cover its current liabilities.

Debt Equity Ratio:

The debt equity ratio increased from 0.01 in 2022 to 0.03 in 2023, indicating a higher level of debt relative to equity. This could suggest increased leverage or borrowing by the company.

Debt Service Coverage Ratio:

The ratio significantly deteriorated from 3.35 in 2022 to -8.38 in 2023. A negative ratio indicates that the company ‘s cash flow from operations is insufficient to cover its debt service obligations. This is a concerning trend and may indicate financial distress.

Return on Equity (ROE) Ratio:

The ROE ratio declined from 0.01 in 2022 to -0.03 in 2023, indicating a negative return on shareholders ‘ equity. This implies that the company ‘s profitability relative to shareholders ‘ equity worsened during the period.

Inventory Turnover Ratio:

The inventory turnover ratio increased from 4.01 in 2022 to 4.97 in 2023, indicating that the company is selling its inventory at a faster rate. This could suggest improved efficiency in inventory management.

Trade Receivable Turnover Ratio:

The trade receivable turnover ratio increased slightly from 14.14 in 2022 to 14.90 in 2023, indicating that the company is collecting its receivables slightly more efficiently.

Trade Payable Turnover Ratio:

The trade payable turnover ratio decreased from 6.95 in 2022 to 6.11 in 2023, suggesting that the company is taking longer to pay its suppliers. This could indicate potential cash flow challenges or changes in payment terms.

Net Capital Turnover Ratio:

The net capital turnover ratio increased from 3.32 in 2022 to 3.42 in 2023, indicating that the company generated more sales per unit of capital invested.

Net Profit Ratio:

The net profit ratio worsened from 0.00 in 2022 to -0.02 in 2023, indicating that the company ‘s profitability decreased, and it incurred a net loss during the period.

Return on Capital Employed (ROCE) and Return on Investment (ROI):

Both ROCE and ROI declined from positive figures in 2022 to negative figures in 2023, indicating decreased returns relative to the capital employed and investment made in the company.

Overall, these financial ratios suggest that while there have been some improvements in operational efficiency (such as inventory turnover), the company ‘s financial health deteriorated significantly in 2023, as evidenced by the negative profitability, declining return ratios, and poor debt service coverage ratio. Further analysis and corrective actions may be necessary to address these issues and improve the company ‘s financial performance.

Dividend History of Kurlon Enterprise Limited

Particulars	31-03-2024	31-03-2023
Dividend Per Share (in Rs.)	–	2.00
Retained Earnings (Rs. In Lakhs)	8893.23	28713.69

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