The movie 'Katha Parayumbol' is produced by popular south Indian actors Srinivasan and Mukesh under the banner Lumiere Film Company. Directed by debutante M. Mohan, the movie narrates a humorous village based story.

The story revolves around Balan (Srinivasan), a local barber in Melukavu village, a straightforward guy, who never likes to depend on anyone to meet his needs. He struggles to support his family of three children. Although he dreams of putting up a better shop with revolving chairs and the works, the fact remains that he is not able to meet even the expenses of his children's education. Adding to his trouble a new barber shop with modern facilities comes up in the village and villagers flock to the new shop.

Meanwhile a film that is going to be shot in the village has popular actor Ashok Raj (Mammootty) in the lead. A news spreads in the village that Ashok Raj and Balan studied together in the same school and were childhood friends. This news begin to change the life of Balan and his wife Sreedevi. Balan becomes sort of a VIP in the village with each and everybody in the village wanting some favour related to the actor. His wife too boasts much about her husband’s friendship with Ashokraj. Unwittingly Balan is pulled into a series of unfortunate incidents as the story unfolds.

Mammooty is Ashok Raj and Meena plays Sreenivasan’s wife Sreedevi in the film. The rest of the cast include Salimkumar, Mukesh, Jagadish, Innocent, K.P.A.C Lalitha etc. The songs are beautifully tuned by M.Jayachandran. P.Sukumaran is the cameraman. The film shot at Thodupuzha in Kerala is ready for release during Christmas.