MIRA INFORM REPORT

Report Date :

15.07.2008

IDENTIFICATION DETAILS

Name :	GINNI INTERNATIONAL LIMITED
Registered Office :	RIICO industrial Area, Neemrana Dist, Alwar – 301 001, Rajasthan
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	24.04.1984
Com. Reg. No.:	17-11217
CIN No.: [Company Identification No.]	L70101RJ1995PLC011217
TAN No.: [Tax Deduction & Collection Account No.]	JPRG02317A
PAN No.: [Permanent Account No.]	AAACG0182E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers of Cotton Yarn and Woven Fabrics.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3163180
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
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.

INFORMATION PARTED BY

Name :	Mr. Umesh
Designation :	Accounts Manager
Contact No.:	91-9414785389
Date :	14.07.2008

LOCATIONS

Registered Office :	RIICO industrial Area, Neemrana Dist, Alwar – 301 001, Rajasthan, India
Tel. No.:	91-1494-246116 / 246117
Mobile No.:	91-941478389
Fax No.:	91-1494-246070
E-Mail :	gniint@vsnl.net pawan.singhal@ginniint.com pnb.ecehouse@hotmail.com
Website :	http://www.ginniint.com
Area :	1.57 lakhs Sq. mtr
Location :	Leased
Factory :	11/ 6B, Shanti Chambers, Usha Road, New Delhi – 110005, India
Tel. No.:	91-11-25826667/ 25826668/ 25826669
Fax No.:	91-11-25827433/ 25827437
Location :	Rented

DIRECTORS

Name :	Mr. Sharad Jaipuria
Designation :	Chairman and Managing Director
Name :	Mr. Umesh Gupta
Designation :	Whole Time Director
Name :	Ms. Amita Narain
Designation :	Director [Nominee – IDBI]
Address:	6, Malviyanagar, Opp. Raj Bhawan, Adjoining to LIC, Bhopal – 462003, Madhya Pradesh, India
Date of Birth :	06.07.1959
Date of Appointment:	26.04.2007
Name :	Mr. Radhey Shyam
Designation :	Director [Nominee – IFCI]
Name :	Mr. Shiromani Sharma
Designation :	Director
Name :	Mr. T. K. Sinha
Designation :	Director
Name :	Mr.Salil Bhandari
Designation :	Director
Name :	Mr. Brijendra Sahay
Designation :	Director
Name :	Mr. P N Swaminathan
Designation :	Director (Nominee - IFCI)
Name :	Mr. P K Singal
Designation :	Director
Name :	Mr. Tara Kumar Sinha
Designation :	Director
Address:	J – 212 FF, Saket, New Delhi – 110017, India
Date of Birth :	03.01.1932
Date of Appointment:	18.02.1995

KEY EXECUTIVES

Name :	Mr. R. K. Bhatnagar
Designation :	Chief Executive Officer
Name :	Mr. P. K. Singhal
Designation :	Company Secretary
Name :	Mr. Saurabh Jain
Designation :	General Manager – Exports
Name :	Mr. Anil Kejriwal
Designation :	Deputy General Manager Marketing – Yarn
Name :	Mr. Amitabh Mehra
Designation :	Deputy General Manager – Marketing – Woven
Name :	Mr. A. Vaitheeswaran
Designation :	President
Name :	Mr. Arun Agarwal
Designation :	Vice President – Finance and Account
Name :	Mr. Saurabh Jain
Designation :	Vice President – Exports
Name :	Mr. Anil Kejriwal
Designation :	General Manager – Marketing, Yarn
Name :	Mr. Yogesh Bhatt
Designation :	General Manager – Marketing, Woven Fabrics

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Equity share breakup (Percentage of total equity)

As on 31.03.2007

Sr. No.	Category	Percentage
1.	Foreign holdings (Foreign institutional investors, Foreign companies, Foreign financial institutions, Non-resident Indians or overseas corporate bodies or others.	36.45
2.	Bodies corporate (not mentioned above)	61.01
3.	Directors or relatives of directors	1.70
4.	Other top fifty (50) shareholders (other than listed above)	0.84
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Cotton Yarn and Woven Fabrics.

Products :

ITC Code	Product Description
52050000	Cotton Yarn
600120	Cotton Knitted Fabric
5208000	Woven Fabric

Exports :

Products :

v Cotton Yarn and Woven Fabrics

Countries :

v Korea

v China

v Thaiwan

v Egypt

v UK

v Italy

v America

v Venzula

Imports :

Products :

Machine and its parts Inco Dienium

Countries :

v Germany

v Switzerland

v China

v UK

v Taiwan

Terms :

Selling :

L/C

Purchasing :

L/C

PRODUCTION STATUS

As on 31.03.2007

Particulars	Actual Production
Ring Spinning	675 MT/Month
Knitting	50 MT per Month
Weaving	7.5 Million Meters per Annum

GENERAL INFORMATION

Customers :	v Wholesalers v Agent
No. of Employees :	Total: 1550 ( Office : 50, Factory : 1500)
Bankers :	v Punjab National Bank ECE House, 28, A K Marg, New Delhi – 110001, India v HDFC Bank H T House, K G Marg, New Delhi – 110001, India

Banking Relations :	Satisfactory
Auditors :
Name :	B. Chhawchharia and Company Chartered Accountants
Address :	K – 3/27, DLF City, Phase – II, Gurgaon – 122002, Haryana, India
Subsidiaries :	Ginni Global Limited U17119DL1978PLC038457

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
22,000,000	Equity shares	Rs. 10/- each	Rs. 220.000 Millions
18,00,000	Preference shares	Rs. 100/- each	Rs. 180.000 millions
	Total		Rs. 400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,12,92,000	Equity shares	Rs. 10/- each	Rs. 212.920 millions
1564800	Preference shares	Rs. 100/- each	Rs. 156.480 millions
	Total		Rs. 369.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		369.400	344.400	314.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		263.236	245.737	225.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		632.636	590.137	539.900
LOAN FUNDS
1] Secured Loans		1695.258	1404.165	1109.100
2] Unsecured Loans		26.895	33.340	24.600
TOTAL BORROWING		1722.153	1437.505	1133.700
DEFERRED TAX LIABILITIES		35.012	28.685	0.000
TOTAL		2389.801	2056.327	1673.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1269.172	1343.023	1086.200
Capital work-in-progress		398.799	36.470	10.600
INVESTMENT		2.950	2.950	3.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	514.179	552.508	479.400
	Sundry Debtors	144.586	129.981	78.800
	Cash & Bank Balances	10.093	32.674	15.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	176.311	99.518	77.200
Total Current Assets		845.169	814.681	650.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	115.274	132.471	72.900
	Provisions	11.015	8.327	3.800
Total Current Liabilities		126.289	140.798	76.700
Net Current Assets		718.880	673.883	573.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2389.801	2056.327	1673.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1854.159	1468.251	1581.100
Other Income		12.251	2.960	0.000
Total Income		1866.410	1471.211	1581.100
Profit/(Loss) Before Tax		28.004	45.291	49.300
Provision for Taxation		10.292	4.800	6.000
Profit/(Loss) After Tax		17.712	40.491	43.300
Expenditures :
	Raw Material Consumed	1149.905	884.000
	Purchases made for re-sale	2.494	2.486
	Consumption of stores and spares parts	101.367	80.091
	Increase/(Decrease) in Finished Goods	(52.583)	(47.776)
	Salaries, Wages, Bonus, etc.	93.749	73.533
	Managerial Remuneration	3.932	3.537	NA
	Payment to Auditors	0.442	0.417
	Interest	119.418	80.970
	Insurance Expenses	4.727	4.176
	Power & Fuel	192.246	147.155
	Depreciation & Amortization	112.446	95.860
	Other Expenditure	110.263	101.471	1531.800
Total Expenditure		1838.406	1425.920	1531.800

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	2.58	2.28	2.09
Long Term Debt-Equity Ratio	1.78	1.55	1.43
Current Ratio	1.27	1.37	1.42
TURNOVER RATIO
Fixed Assets	0.87	0.77	0.93
Inventory	3.48	2.89	3.42
Debtors	13.53	14.30	21.27
Interest cover Ratio	1.22	1.51	1.36
Operating Profit Margin(%)	14.45	15.46	13.19
Profit Before Interest and Tax Margin(%)	8.40	9.03	7.57
Cash Profit Margin(%)	7.01	9.13	7.51
Adjusted Net Profit Margin(%)	0.95	2.71	1.89
Return on Capital Employed(%)	7.12	7.29	7.46
Return on Net Worth(%)	3.79	9.03	7.16

LOCAL AGENCY FURTHER INFORMATION

Form 8

This form is for	Creation of charge
Corporation identity number (CIN) or foreign company registrations number of the company	L70101RJ1995PLC011217
Name of the company	GINNI INTERNATIONAL LIMITED
Address	RIICO industrial Area, Neemrana Dist, Alwar – 301 001, Rajasthan, India
Type of Charges	v Immovable property v Movable property (not being pledge)
Particular of the charge holder	Name: Punjab National bank Address: ECE House, 28, A K G Marg City: New Delhi ISO country code: IN Pin code: 110001 e-mail ID: pnb.ecehouse@hotmail.com
Nature or description of the instrument creating or modifying the charge	Term Loan agreement dated 20.09.2007, Hypothecation of current assets dated 20.09.2007, Hypothecation of movable assets forming part of Fixed/ Block Assets dated 20.09.2007 and Deed of hypothecation to secure ILC/ FLC on (DA/ DP) Basis.
Date of the instrument creating charge	20.09.2007
Amount Secure by the charge	Rs. 62.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest BPLR – 0.50% Plus term premia 0.50% i.e. 13.00% p.a. with monthly rests. Interest to be repaid as and when due/ levied on monthly basis. Interest payable by the borrower shall be subject to change/ variations in interest /rates made by RBI/ Bank from time to time and future liable to be reset after every two years. (b) Terms of repayment Loan to be repaid in 20 Quarterly installments of Rs. 3.100 millions each commencing with a moratorium period of one year from the completion of project but not later than 01.10.2008. (c) Margin 30% (Total project cost Rs. 88.500 millions) (d) Extent and operation of the charge First pari passu charge on the fixed assets and second pari passu charge on the current assets to the extent of Rs. 62.000 millions.
Short particulars of the Property charged	1. First pari passu charge on existing and future fixed assets (both movable and immovable) of the borrower. 2. Second pari passu charge on current assets of the borrower.
Whether any of the property or interest therein under reference is not registered in the name of the company	No

As Per Website Details

Subject was commissioned at RIICO Industrial Area, Neemrana, Distt. Alwar, Rajasthan in 1996, a state of art manufacturing facility.

Subject 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.

Operations :

During the year 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. 

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 :

The 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.

The 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. 43.17
UK Pound	1	Rs. 86.26
Euro	1	Rs. 68.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		64

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.	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, they have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions