A Japanese ship is sailing in the Indian Ocean. The captain of the ship feels tired and decides to take shower to be rejuvenated. He goes to take the shower after keeping his diamond-studded Rolex watch and gold chain on the table.
When he comes back after 15 minutes, he finds them missing. There are 4 crew members on the ship and he calls them one by one to ask them what they were doing in that duration.

Following are the answers:
1. Crew 'A' who is the cook replies that he was cooking mutton for the crew members.
2. Crew 'B' who is a housekeeper tells that he was sleeping in his room.
3. Crew 'C' who is the engineer says that he was checking on the generator.
4. Crew 'D' who is another housekeeper says that he was correcting the hoisted flag that was put upside down.

It took only a couple of seconds for the captain to find the thief. Can you find the thief too?

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Take out my middle and still, I remain.
What word am I?