MIRA
INFORM REPORT
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Report Date : |
05.07.2007 |
IDENTIFICATION DETAILS
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Name : |
GINNI
INTERNATIONAL LIMITED |
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Registered Office : |
RIICO Industrial
Area, Neemrana District, Alwar – 301001, |
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Country : |
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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
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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
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Registered Office/ Factory : |
RIICO Industrial
Area, Neemrana District, Alwar – 301001, |
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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 : |
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Website : |
DIRECTORS
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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 |
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 |
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Name : |
Mr. A.
Vaitheeswaran |
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Designation : |
President |
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Name : |
Mr. Yogesh Bhatt |
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Designation : |
General Manager –
Marketing , Woven Fabric |
BUSINESS DETAILS
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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
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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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Auditors : |
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Name : |
B. Chhawchharia
& Company Chartered
Accountants |
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Associates/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 |
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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
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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
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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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
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
2.28 |
2.09 |
2.14 |
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Long Term Debt
Equity Ratio |
1.55 |
1.43 |
1.56 |
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Current Ratio |
1.37 |
1.42 |
1.40 |
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TURNOVER RATIOS |
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Fixed Assets |
0.77 |
0.93 |
0.95 |
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Inventory |
2.90 |
3.42 |
3.92 |
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Debtors |
14.31 |
21.27 |
22.78 |
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Interest Cover
Ratio |
1.51 |
1.36 |
1.56 |
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Operating Profit
Margin (%) |
15.45 |
13.19 |
14.18 |
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Profit Before
Interest and Tax Margin (%) |
9.03 |
7.57 |
8.78 |
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Cash Profit Margin
(%) |
9.13 |
7.51 |
8.16 |
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Adjusted Net
Profit Margin (%) |
2.71 |
1.89 |
2.76 |
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Return on Capital
Employed (%) |
7.29 |
7.46 |
9.01 |
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Return on Net
Worth (%) |
9.03 |
7.16 |
11.21 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
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High |
Rs.17.75/- |
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Low |
Rs.17.75/- |
LOCAL AGENCY FURTHER INFORMATION
The company’s Registered Office was transferred from 2nd
Floor, Shanti Chambers, 11/6B
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 |
|
Works |
Neemrana (110 KM
from |
|
R & D |
Equipped with all
modern equipments, such as Spinlab, UTR, UT3, Classimat etc. |
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Performance |
Yarn quality
between 5-15% Uster Standards Woven Fabric
quality with the Japanese 10 Points System |
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Company
Paid-up Capital |
Rs. 344.100
millions |
|
Turnover |
US$30.00 Million
per annum |
State of
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,
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.40.46 |
|
|
1 |
Rs.81.55 |
|
Euro |
1 |
Rs.55.09 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--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 |
|