MIRA INFORM REPORT
|
Report Date : |
26.10.2006 |
IDENTIFICATION DETAILS
|
Name : |
GINNI
FILAMENTS LIMITED |
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Registered Office : |
110
KM Stone, Delhi-Mathura Road, Chhata, Mathura – 281 401, Uttar Pradesh, India |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.12.1990 |
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Com. Reg. No.: |
20-12550 |
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CIN No.: [Company Identification No.] |
L71200UP1982PLC012550 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELG08946A |
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PAN No.: [Permanent Account No.] |
AABCG0942K |
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Legal Form : |
Subject is a Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing
of Combed Cotton Yarn, which is used to produce Hosiery, Under-garments,
Nightwear, T-shirts, Handkerchiefs, Quality Woven Fabrics, Knitted Shirts,
Fashion Garments, Socks, Embroidery Yarns, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. General financial position is satisfactory. Payments are reported
as slow but correct. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
110
KM Stone, Delhi-Mathura Road, Chhata, Mathura – 281 401, Uttar Pradesh, India |
|
Tel. No.: |
91-5662-242490/242491/242341/246648/232438 |
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Fax No.: |
91-5662-242223 |
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E-Mail : |
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Website : |
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Corporate Office : |
8th Floor, Padma
Tower – II, Rajendra Place, New Delhi – 110 008 |
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Tel. No.: |
91-11-25735852,
25735516, 25711734 |
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Fax No.: |
91-11-25751076, 25735899 |
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E-Mail : |
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Factory 1 : |
110
KM Stone, Delhi-Mathura Road, Chhata, Mathura – 281 401, Uttar Pradesh, India |
DIRECTORS
|
Name : |
Mr.
Rajaram Jaipuria |
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Designation : |
Chairman
& Managing Director |
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Name : |
Mr.
Shishir Jaipuria |
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Designation : |
Vice-Chairman
& Managing Director |
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Name : |
Mr.
J. K. Bhagat |
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Designation : |
Director |
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Name : |
Mr.
Gian Prakash |
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Designation : |
Director |
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Name : |
Mr.
M. P. Wadhawan |
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Designation : |
Director |
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Name : |
Mr.
Joginder Pal Kundra |
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Designation : |
Director |
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Name : |
Mr.
H. P. Bhattacharya |
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Designation : |
Director |
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Name : |
Mr.
Ashok Chopra |
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Designation : |
Director
(Nominee – IDBI) |
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Name : |
Mr.
Rattan Bansal |
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Designation : |
Director
(Nominee – IFCI) |
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Name : |
Mr.
A K Sharma |
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Designation : |
Detector
(Nominee - IFCI) |
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Name : |
Mr. D. C. Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters and Persons
acting in concert |
30811369 |
51.99 |
|
Mutual Funds and UTI |
2802154 |
4.73 |
|
Financial Institutions/Bank |
3274968 |
5.53 |
|
Foreign Institutional
Investors |
528703 |
0.89 |
|
NRIs/OCB’s |
182947 |
0.31 |
|
Bodies Corporate |
3656105 |
6.17 |
|
Resident Individuals |
17676606 |
29.83 |
|
Others |
329773 |
0.55 |
|
Sub-Total |
59262625 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Combed Cotton Yarn, which is used to produce Hosiery, Under-garments,
Nightwear, T-shirts, Handkerchiefs, Quality Woven Fabrics, Knitted Shirts, Fashion
Garments, Socks, Embroidery Yarns, etc. |
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Products : |
It’s product range include
:- v
Cotton Carded Yarns v
Cotton Combed Yarns v
Cotton Open End Yarns v
Cotton Grey Knit Yarns |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Spindles |
Nos. |
120672 |
54432 |
-- |
|
Knitting Machines |
Nos. |
42 |
27 |
-- |
|
Rotors |
Nos. |
2400 |
960 |
-- |
|
Garments |
Pieces |
360000 |
-- |
-- |
|
Yarn |
Nos. |
-- |
-- |
160.07 |
|
Knitted Fabrics |
Nos. |
-- |
-- |
17.04 |
|
Waste |
Nos. |
-- |
-- |
7.48 |
|
Garments |
Pieces |
-- |
-- |
-- |
|
Processing |
Kg/Batch |
-- |
2340 |
-- |
GENERAL INFORMATION
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No. of Employees : |
1271 |
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Bankers : |
v
State Bank of India v
Bank of Baroda v
The Federal Bank
Limited v
State Bank of Bikaner
& Jaipur v
UCO Bank |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
P. L. Gupta & Company Chartered Accountants |
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Associates: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity Shares of |
Rs.10/- each |
Rs. 750.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
59262625 |
Equity Shares of |
Rs.10/- each |
Rs. 592.626 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
592.626 |
330.000 |
330.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
701.264 |
357.757 |
365.306 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
-- |
|
NETWORTH
|
1293.890 |
687.757 |
695.306 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1265.403 |
1255.906 |
1280.615 |
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2] Unsecured Loans |
158.196 |
69.539 |
39.228 |
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TOTAL
BORROWING
|
1423.599 |
1325.445 |
1319.843 |
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|
DEFERRED TAX LIABILITIES |
206.921 |
200.444 |
180.397 |
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TOTAL
|
2924.410 |
2213.646 |
2195.546 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
1456.872 |
1190.037 |
1250.152 |
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Capital work-in-progress
|
327.055 |
301.354 |
0.354 |
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INVESTMENT
|
102.756 |
102.756 |
102.756 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
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Inventories
|
782.458 |
457.428 |
785.501 |
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Sundry Debtors
|
184.128 |
135.050 |
161.110 |
|
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Cash & Bank Balances
|
97.846 |
47.102 |
22.352 |
|
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Other Current Assets
|
82.647 |
52.980 |
58.616 |
|
|
Loans & Advances
|
75.211 |
60.587 |
40.487 |
Total Current Assets
|
1222.290 |
753.147 |
1068.066 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
192.103 |
143.200 |
237.447 |
|
|
Provisions
|
0.000 |
0.000 |
0.000 |
Total Current Liabilities
|
192.103 |
143.200 |
237.447 |
|
Net Current
Assets
|
1030.187 |
609.947 |
830.619 |
|
|
|
|
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MISCELLANEOUS EXPENSES
|
7.540 |
9.552 |
11.665 |
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|
|
|
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|
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TOTAL
|
2924.410 |
2213.646 |
2195.546 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
1943.955 |
1859.440 |
2020.791 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
70.184 |
42.890 |
90.438 |
Provision for Taxation
|
|
|
33.668 |
Profit/(Loss) After Tax
|
55.807 |
19.480 |
56.770 |
|
|
|
|
|
|
Exports |
1075.496 |
1076.844 |
1148.301 |
|
|
|
|
|
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Imports |
176.913 |
267.533 |
270.508 |
|
|
|
|
|
|
Expenditures |
1752.902 |
1708.032 |
1823.809 |
QUARTERLY
|
PARTICULARS |
|
|
30.06.2006 (1st Quarter) |
Sales Turnover
|
|
|
490.500 |
Other Income
|
|
|
5.800 |
Total Income
|
|
|
496.300 |
Total Expenditure
|
|
|
418.800 |
Operating Profit
|
|
|
77.500 |
Interest
|
|
|
27.400 |
Gross Profit
|
|
|
50.100 |
Depreciation
|
|
|
31.400 |
Tax
|
|
|
2.100 |
Reported PAT
|
|
|
10.000 |
200606
Quarter 1 - EPS is Basic and Diluted. 1. The figures of the previous year
have been regrouped, wherever necessary. 3. The Company's Debottlenecking
project of Open End Spinning has commenced commercial production during the
quarter. 4. The aforesaid results were taken on record by the Board at its Meeting
held on 31.07.2006. 5. During the quarter 52 investor complaints were received
which were dealt with by the Company. No complaints were pending either at the
beginning or at the end of the quarter.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.39 |
1.91 |
1.88 |
|
Long
Term Debt Equity Ratio |
1.06 |
1.34 |
1.26 |
|
Current
Ratio |
1.37 |
1.15 |
1.12 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.83 |
0.89 |
0.96 |
|
Inventory
|
3.11 |
3.03 |
3.21 |
|
Debtors |
12.08 |
12.72 |
14.76 |
|
Interest
Cover Ratio |
1.57 |
1.44 |
1.90 |
|
Operating
Profit Margin (%) |
15.27 |
13.26 |
14.65 |
|
Profit
Before Interest and Tax Margin (%) |
9.00 |
7.50 |
9.42 |
|
Cash
Profit Margin (%) |
8.86 |
6.80 |
8.03 |
|
Adjusted
Net Profit Margin (%) |
2.58 |
1.04 |
2.79 |
|
Return
on Capital Employed (%) |
7.36 |
7.05 |
9.83 |
|
Return
on Net Worth (%) |
5.03 |
2.82 |
8.34 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.
18.75/- |
|
Low |
Rs.
17.65/- |
LOCAL AGENCY FURTHER INFORMATION
Operations
During the year under review the Company has
improved its performance with increase in Sales and Services from Rs. 1883.561
Millions to 1927.694 Millions and net profit from Rs. 19.480 Millions to Rs.
55.807 Millions, which was mainly on account of improved availability and lower
prices of cotton. The better performance has been achieved despite steep
increase in fuel prices during the year resulting into increase in cost of
power generation in the captive power plant of the Company.
The Board is confident of further improvement during the current year on
account of substantial increase in the activities on account of new capacities
scheduled to become operational during the current year.
Expansion / New Projects
The Company's Dyeing & Processing Plant for knit fabrics was
completed and has commenced commercial production during the year under
review.
Industry
Structure & Development:
The Indian Textile Industry is passing through a phase of consolidation,
expansion and restructuring with the abolition of quantitative restrictions
under MFA and the positive fiscal changes made by the Government. The Technology
upgradation Fund (TUF) has further given boost to the expansion of textile
industry in India. With the improved cotton crop, margins of Indian Cotton
Textiles Industry have started improving . With these aspects, the Indian
Cotton textile Industry is likely to continue to occupy a significant place in
international textile economy.
Opportunities & Threats:
Abolition of quantitative restriction under MFA has provided big opportunity
for Indian textile industry to have access to global textile market. The easy
availability of raw material i.e. cotton, man made fibre and viscose would help
encashing this opportunity. Further expansion of domestic market would provide
stability to Indian textile industry. The TUF scheme is catalysing growth of Indian
textile industry to avail of the benefits of expended opportunities.
Due to small size of operations the profit margin of the textile industry
is lower. Increasing fuel prices are partially affecting the margin of textile
units with captive power generation.
Outlook :
The outlook of textile industry appears to be bright with expanded
opportunities and better margins. In view of the above the company has also
undertaken expansion schemes. Visualising the big opportunities in technical
textile in India, the Company is putting up the unit to manufacture technical
textiles.
The Company's schemes for Expansion-cum-Debottlenecking of existing
spinning capacity and setting up of new projects for manufacturing Non-Woven
Fabrics and Garments are under progress. The expansion of the spinning
facilities at the existing plant has since become operational. Spinning
facilities and Non-Woven Fabrics units at Panoli (Gujarat) and Garments Unit at
NOIDA are likely to start commercial production during the current year.
The Company's foray into Consumer Products made of spunlace Non-Woven Fabric
viz. - Beauty, Baby and Hygiene care products have been receiving encouraging
market response.
Website
details are attached herewith:-
GINNI stands for Gold in India. Ginni Filaments spell the ultimate in cotton yarns and processed knitted fabrics. Their sophisticated machinery, advanced R&D, rigid raw material selection, computerized control system and well trained man power ensures the highest quality standards. They take pride in claiming their product equal to the best available anywhere in the world.
Subjects
have a capacity to produce the following:
-
30
Tons of Single Ring Spun Combed yarn per day in the count range of Ne 16 to Ne
50.
3
Tons of Carded yarn.
10
Tons of Doubling 16s - 40s/2.
In
Open-end, 10 Tons of Hosiery and Warp yarn are being produced in the count
range of Ne 6s to Ne 20s.
10
Tons of Processed Knitted Fabrics per day consisting of (5 tones of tubular and
5 tons of open-width) viz.:-
NE
20 to 50 Single Jersey
NE
20 to 50 Single Jersey with Lycra
NE
20 to 40 Rib
NE
20 to 40 Rib with Lycra
NE
24 to 40 Interlock
NE
24 to 30 Pique
NE
24 to 30 Pique with Lycra
NE
60/2 Gassed Single Jersey
NE
24 to 40 Viscose Lycra
150D/100
Terry Fabric
75D/34
Interlock Polyester Fabric
Polar
Fleece Fabric
Cotton
Melange Single Jersey
Cotton
Melange with Lycra
Available gg - 18gg/20gg/24gg/28gg.
Available
Diameter - 30''/32"/34"/36"
Special
Finishes :-
Teflon
Stain
Resistant
Water
Repellent
Fire
Retardant etc.
BIAS
It
is unique software to control inventory and issuing of cotton bales to have a
consistent day to day mixing. After receipt of approved cotton lots in the
factory premises, each bale of every consignment is tested and graded with BIAS
(BALE INVENTORY AND ANALYSYS SYSTEM), stacked in Warehouse marked with
various bales and its consumption for defined end product. Issue of Raw
material is generated with, BIAS system generating bale lay out for the Uniflock
to avoid problems of barre and inconsistency in Quality.
Contamination free yarn
Today,
contamination is the single most major problem for any spinner throughout the
world. To detect unwanted contamination, they have modernised their plant with
latest equipment as given below :-
BARCO : To
detect & eliminate Contamination in Blowroom they have installed this
system from M/s Barco, Belgium in all Blowroom Lines.
Quantum Clearer:
To detect & eliminate Contamination on Winding M/c, this is a latest Optical
based clearer QUANTUM CLEARER from M/s Zellweger Uster in Autoconer. This has a
capacity to detect visual contamination upto 5% visibility.
Loephe Yarn Master 930 Plus : This yarn clearer is installed in Autoconer to detect
contamination in yarn alongwith other objectionable faults.
Elite Spinning
To
produce a special yarn having low hairiness and higher strength, these M/cs
were installed to cater special requirement of customer, aspiring for niche
market segments.
Length Measuring Device
Subject
Autoconers and Cheese Winding machines are equipped with electronic Length
Measuring Device so that they can guarantee fixed length material for improved
warping efficiency and lower wastage.
Mesdan Wet Splicer
Subject
doubled yarn is knotless one. Again thanks to the modern technology of Wet
Splicer from M/s Mesdan, which they have installed on all their TFOs &
Cheese Winders.
Xorrela Coditioning
All yarn is Xorella conditioned for Steam
setting of twist present in the yarn resulting in better performance in further
processing.
LUWA Air-conditioning system
A
computerised Air conditioning system maintains Temperature and Humidity in the
department throughout the year.
STARFISH
A
special software package helps to optimise yarn processing and select knitting
machines to achieve the desired final product specifications.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No records 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 records 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. 45.02 |
|
UK
Pound |
1 |
Rs. 85.56 |
|
Euro |
1 |
Rs. 57.24 |
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 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In
view of the lack of information, we have no basis upon which to recommend
credit dealings |
No Rating |
|