KURLON Enterprise Limited Unlisted Shares

Annual Report Summary

Kurlon Annual Report 2023-24 Summary:

This document is the annual report for Kurlon Enterprise Limited for the financial year 2023-24. Kurlon, a leading mattress manufacturer in India, became a part of Sheela Foam Ltd in 2024. The report includes corporate information, financial highlights, and the Director's Report.

Corporate Snapshot:

Kurlon's Board of Directors includes Mr. Tushaar Gautam (Managing Director), Mr. Rahul Gautam, Ms. Jyothi Ashish Pradhan (Non-Executive Directors), Mr. Ravindra Dhariwal, and Ms. Meena Jagtiani (Independent Directors). Mr. Abhilash Kamti is the Chief Financial Officer (CFO), and Mr. Monu Kumar is the Company Secretary. Statutory auditor is M/s. MSKA & Associates. The bankers are Axis Bank Ltd., IDBI Bank Ltd., and Kotak Mahindra Bank Ltd.

Brand Story & Vision:

Founded in 1962 by Ramesh Pai, Kurlon initially focused on coir mattresses, pioneering the use of coir in India. Kurlon's vision is to sustain Brand Leadership with Highest Consumer Delight, through a world-class manufacturing process, innovation, and making it the best place to work. This involves delivering exponential growth and maximizing wealth for stakeholders responsibly.

Key Products & Services:

Kurlon delivers comfort through its stores, retail partners, and products, integrating technology for traceability, omnichannel shopping, and after-sales service. Products include rubberized coir, natural latex, pocket spring, and PU foam mattresses. Brands include OrthoMagic and Klassic.

Financial Highlights:

The company's standalone revenue from operations for FY 2023-24 was Rs. 80,031.89 lakhs, compared to Rs. 84,287.22 lakhs in the previous year. The company experienced a loss before tax of Rs. 5,060.58 lakhs and a loss after tax of Rs. 4,888.56 lakhs. The consolidated revenue from operations was Rs. 81,986.05 lakhs (FY 2022-23: Rs. 85,889.51 lakhs), with a loss before tax of Rs 5,475.46 lakhs and a loss after tax of Rs 5,427.93 lakhs. The financials were impacted by write-offs, goodwill impairment, and asset devaluation on physical verification.

Director's Report:

The Board of Directors presents the 13th Board Report, reviewing the company's performance and affairs. The revenue review indicates a decrease in both standalone and consolidated revenue compared to the previous financial year. The company's CSR efforts align with ESG responsibilities, focusing on health, education, and sanitation. The company's subsidiary details are provided, with Kurlon Retail Limited, Komfort Universe Products and Services Limited, Belvedore International Limited, Starship Value Chain and Manufacturing (P) Limited, and Kanvas Concepts Private Limited listed. There has been no change in the nature of business.

Operational Changes:

Kanara Consumer Products Limited and Kurlon Trading and Invest Management Private Limited sold a majority stake to Sheela Foam Limited. The company is now a material subsidiary of Sheela Foam Limited, and a scheme of amalgamation with Sheela Foam is in progress. KCPL transferred lands, Company acquired Gwalior Business, and Company sold its investments in Sevalal Solar group to KCPL, in addition to adjusting lease deposits for asset acquisitions from KCPL.

Corporate Governance & Compliance:

The report states compliance with applicable laws and ethical business practices. There were changes in the composition of various committees, such as the Audit Committee and CSR Committee. It includes details on board meetings, evaluation processes, and policies on director appointments and remuneration.

Risk Management & Internal Controls:

Kurlon has an adequate internal control system commensurate with its size and operations. There is a comprehensive Risk Assessment and Minimization Procedure.

Subsidiaries, Associates & Joint Ventures:

As of March 31, 2024, Kurlon has five wholly-owned subsidiaries: Kurlon Retail Limited, Komfort Universe Products and Services Limited, Belvedore International Limited, Starship Value Chain and Manufacturing (P) Limited, and Kanvas Concepts Private Limited.

Directors' Responsibility Statement:

The directors confirm responsibility for the preparation of financial statements in accordance with applicable standards and maintaining adequate accounting records.

Statutory Auditors & Internal Audit:

MSKA & Associates are the statutory auditors. The company also uses Secretarial Auditors and cost auditors.

Other Key Points:

• The company's plants are certified with OHSAS:18001 standards.
• Kurlon has a Whistle Blower Policy and also has taken steps to prevent the Sexual Harassment of Women at Workplace.
• A section on safety, health, and environment is included.
• The management discussion and analysis report outlines the economic scenario and industry-specific trends.
• The Independent Auditor's Report details responsibilities and opinions on the consolidated and standalone financial statements.

Appendices:

The report includes several appendices with detailed financial statements and related notes, auditor's reports, and CSR activities.