MIRA
INFORM REPORT
|
Report Date : |
02.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
GINNI
INTERNATIONAL LIMITED |
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Registered Office : |
RIICO
Industrial Area, Neemrana District, Alwar – 301001, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.12.1995 |
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Com. Reg. No.: |
17-11217 |
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CIN No.: [Company
Identification No.] |
L70101RJ1995PLC011217 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JPRG02317A |
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PAN No.: [Permanent
Account No.] |
AAACG0182E |
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Legal Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers
of Cotton Yarn and Woven Fabrics. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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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
2250000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track. Directors are reported as experienced and
respectable businessmen. Trade relations are fair. Business is active.
Payments are usually correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
RIICO
Industrial Area, Neemrana District, Alwar – 301001, Rajasthan, India |
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Tel. No.: |
91-1494-246116
/ 246117 |
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Fax No.: |
91-1494-246070 |
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E-Mail : |
gniint@vsnl.net |
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Website : |
http://www.ginniint.com |
DIRECTORS
|
Name : |
Mr.
Sharad Jaipuria |
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Designation : |
Chairman
and Managing Director |
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Name : |
Mr.
Umesh Gupta |
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Designation : |
Whole
Time Director |
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Name : |
Ms.
Amita Narain |
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Designation : |
Director
[Nominee – IDBI] |
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Name : |
Mr.
Radhey Shyam |
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Designation : |
Director
[Nominee – IFCI] |
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Name : |
Mr.
Shiromani Sharma |
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Designation : |
Director
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Name
: |
Mr. T.
K. Sinha |
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Designation
: |
Director
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Name
: |
Mr.Salil
Bhandari |
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Designation
: |
Director
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Name
: |
Mr.
Brijendra Sahay |
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Designation
: |
Director
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KEY EXECUTIVES
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Name
: |
Mr. R.
K. Bhatnagar |
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Designation
: |
Chief Executive
Officer |
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Name
: |
Mr. P.
K. Singhal |
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Designation
: |
Vice
President – Finance & CS |
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Name
: |
Mr.
Saurabh Jain |
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Designation
: |
General
Manager – Exports |
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Name
: |
Mr.
Anil Kejriwal |
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Designation
: |
Deputy
General Manager Marketing – Yarn |
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Name
: |
Mr.
Amitabh Mehra |
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Designation
: |
Deputy
General Manager – Marketing – Woven |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Cotton Yarn and Woven Fabrics. |
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Products : |
Ring
Spun : Ne 16 to Ne32 in Single & 2 Ply All combed Fabrics :
Knitted Fabric in Single Jersy Grey
Woven Loom-state Fabrics |
PRODUCTION
STATUS
|
Particulars |
Actual Production |
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Ring Spinning |
675 MT/Month |
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Knitting
|
50 MT per Month |
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Weaving |
7.5
Million Meters per Annum |
GENERAL
INFORMATION
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No. of Employees : |
1095 |
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Bankers : |
Not
Available |
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Banking Relations : |
-- |
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Auditors : |
B. Chhawchharia
& Company Chartered
Accountants |
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Subsidiaries : |
Ginni
Global Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
37000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 370.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
34400000 |
Equity
Shares |
Rs. 10/- each |
Rs. 344.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
344.400 |
314.400 |
314.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
245.700 |
225.500 |
195.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
590.100 |
539.900 |
509.600 |
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LOAN FUNDS |
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1] Secured Loans |
1404.200 |
1109.100 |
1031.300 |
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2] Unsecured Loans |
33.300 |
24.600 |
32.800 |
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TOTAL BORROWING |
1437.500 |
1133.700 |
1064.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2027.600 |
1673.600 |
1573.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1343.000 |
1086.200 |
1069.400 |
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Capital work-in-progress |
36.500 |
10.600 |
1.700 |
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INVESTMENT |
3.000 |
3.000 |
3.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
552.500
|
479.400 |
456.200 |
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Sundry Debtors |
130.000
|
78.800 |
71.800 |
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Cash & Bank Balances |
32.700
|
15.100 |
14.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
99.400
|
77.200 |
63.700 |
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Total Current Assets |
814.600
|
650.500 |
606.000 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
161.200
|
72.900 |
104.500 |
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Provisions |
8.300
|
3.800 |
1.900 |
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Total Current Liabilities |
169.500
|
76.700 |
106.400 |
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Net Current Assets |
645.100
|
573.800 |
499.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2027.600 |
1673.600 |
1573.700 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other
income] |
1545.800 |
1602.700 |
1581.100 |
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Profit/(Loss)
Before Tax |
45.300 |
32.300 |
49.300 |
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Provision
for Taxation |
4.800 |
2.000 |
6.000 |
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Profit/(Loss)
After Tax |
40.500 |
30.300 |
43.300 |
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Total
Expenditure |
1500.500 |
1570.400 |
1531.800 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
2.28 |
2.09 |
2.14 |
|
Long
Term Debt Equity Ratio |
1.55 |
1.43 |
1.56 |
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Current
Ratio |
1.37 |
1.42 |
1.40 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
0.77 |
0.93 |
0.95 |
|
Inventory
|
2.90 |
3.42 |
3.92 |
|
Debtors |
14.31 |
21.27 |
22.78 |
|
Interest
Cover Ratio |
1.51 |
1.36 |
1.56 |
|
Operating
Profit Margin (%) |
15.45 |
13.19 |
14.18 |
|
Profit
Before Interest and Tax Margin (%) |
9.03 |
7.57 |
8.78 |
|
Cash
Profit Margin (%) |
9.13 |
7.51 |
8.16 |
|
Adjusted
Net Profit Margin (%) |
2.71 |
1.89 |
2.76 |
|
Return
on Capital Employed (%) |
7.29 |
7.46 |
9.01 |
|
Return
on Net Worth (%) |
9.03 |
7.16 |
11.21 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.17.75/- |
|
Low |
Rs.17.75/- |
LOCAL AGENCY
FURTHER INFORMATION
The company’s Registered Office was transferred from 2nd Floor, Shanti Chambers, 11/6B Pusa Road, New Delhi – 110005 to the present address.
Operations :
During the year under report, the company manufactured 9800.35 MT of cotton
yarn and 10.194 millions mtrs of woven fabric. Despite increase in production,
sales and other income reduced due to increase in captive consumption of cotton
yarn and reduction in the prices of finished products consequent upon down ward
movement in cotton prices. During the year, the company earned gross profit of
Rs. 141.153 millions against Rs. 122.264 millions of the previous year despite
increase in fuel cost from Rs. 106.482 millions to Rs. 147.155 millions due to
unprecedented spurt in oil prices.
In order to conserve resources for expansion, the directors have not
recommended any dividend for the year under report.
Expansion :
During the year, the company increased its weaving capacity from 61 looms to
108 looms. To further produce value added products, the company is also setting
up denim fabric plant to process 10 million meters of its grey fabric annually.
Denim plant is expected to be commissioned by December, 2006.
Future Outlook :
Intensified competition in cotton textile industry due to sudden increase in
manufacturing capacity and increase in production cost on account of unprecedented
spurt in oil prices has had an impact on the operating margins of the company.
To maintain its competitive edge in the long run, the company is not only
expanding its manufacturing capacity but also continuously striving to reduce
its operating cost. The directors are optimistic about the improved performance
of the company during the current financial year.
Subsidiary Company :
Pursuant to the approval granted by the Central Government, vide its letter No.47/50/2006-CL-III
dated 03.04.2006, under section 212 (8) of the Companies Act, 1956, copy of the
Balance Sheet, Profit & Loss Account and Reports of the Board of Directors
and the Auditors' thereon relating to Ginni Global Limited, a subsidiary of the
company, have not been attached with the annual accounts of the company. The
company will make available these documents and other details upon request by
any member of the company / subsidiary company. The annual accounts of Ginni
Global Limited, are also open for inspection by any member at the Head Office
of the company. Consolidated financial statements presented by the company have
been prepared in accordance with Accounting Standard AS-21 issued by the
Institute of Chartered Accountants of India.
Paid up Capital :
During the year, the company issued 4,00,000 Redeemable Cumulative Preference
Shares of Rs.100/- each aggregating to Rs. 40 millions on preferential basis to
mobilize long term resources to part finance expansion of weaving capacity,
mentioned in para (3) above. Simultaneously, the company also redeemed
preference shares of Rs. 10.000 millions, which became due on 31.03.2006.
Considering the general reduction in interest rates, holders of preference
shares of Rs. 53.980 millions have agreed to reduce the coupon rate of dividend
on their preference shares with retrospective effect i.e. date of issue of said
shares along-with waiver of past accumulated dividend of Rs. 48.790 millions.
The directors place on record their gratitude to them for their gesture.
Industry Scenario & Future Challenges :
Cotton textile industry is going through one of its most buoyant phases. During
2004-05, it posted a 7.7% growth, the highest rate in the last five years.
Availability of interest & capital subsidy under TUF and easy money market
conditions induced textile industry to grow rapidly. However, sudden increase
in capacity will intensify competition and affect operating margins in the
shorter period. Power and labour constitute significant cost in cotton textile
industry. Rapidly increasing cost of captive power generation and
transportation cost, caused by surging oil prices have posed serious challenge
before the industry. Labour laws reform to improve labour productivity in the
industry is need of the hour. The government, has set up a sub group to study
& suggest labour laws reform needed to improve labour productivity in the
industry. Though, burgeoning power cost and rigid labour laws continues to be
serious impediments in making the industry cost competitive but despite these
constraints, Indian textile industry is optimistic and had an investment of
over Rs. 300000 millions in 2005-06.
WEBSITE
DETAILS
Ginni
International Limited was commissioned at RIICO Industrial Area, Neemrana,
District Alwar, Rajasthan in 1996, a state of art manufacturing facility.
Ginni International Limited (GIL) is a 100% Export Oriented Unit and
encompasses spinning, weaving and knitting activities, The installed capacity
stands at 32256 spindles, a state of the art facility for production of 100%
cotton yarns in product range of Ne 16 to Ne 32, GIL also has capacity to
produce world class quality woven fabrics with 54 picanol air jet looms. GIL is
professionally managed having drawn heavily from the reservoir of managerial
talent developed over the years. It employs over 700 strong skilled work force.
The company achieved the ISO certification in 1997, and its products are
compared with the best produced anywhere in the world.
Company
Profile:
GINNI
INTERNATIONAL LIMITED
|
Established |
1996 |
|
Activity |
Manufacturer
/ Exporter |
|
Status |
100%
Export Oriented Unit (entire production being exported outside India) |
|
Works |
Neemrana
(110 KM from Delhi) |
|
R & D |
Equipped
with all modern equipments, such as Spinlab, UTR, UT3, Classimat etc. |
|
Performance |
Yarn
quality between 5-15% Uster Standards Woven
Fabric quality with the Japanese 10 Points System |
|
Company
Paid-up Capital |
Rs.
344.100 millions |
|
Turnover |
US$30.00
Million per annum |
State
of Art Technology
Ring
Spinning : 32,256 No's Spindles (Imported from Rieter)
9
No's TFO (Imported from Volkman)
11
No's Autoconers (Imported from Schlafhorst)
Knitting :
4 No's Knitting Machines (imported from Terrot)
Weaving :
1 No. Warping M/c (imported from H. Sucker Muller)
1
No. Sizing M/c (imported from H. Sucker Muller)
54
No's Picanol Air-Jet Looms - 190 Cms (imported from Picanol)
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.44.45 |
|
UK
Pound |
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.57.12 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
49 |
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 |
|