[xsl] XSL help

I need help for xsl.

Actually Grouping is not working in my xsl, Input and expected output are
given below.
Input xml:

<country>
 <states>
  <city>Albama</city>
  <pin>1</pin>
  <zip>aa</zip>
  <phone>12</phone>
 </states>
 <states>
  <city>Albama</city>
  <pin>1</pin>
  <zip>ab</zip>
  <phone>11</phone>
 </states>
 <states>
  <city>Albama</city>
  <pin>1</pin>
  <zip>ic</zip>
  <phone>14</phone>
 </states>
 <states>
  <city>Austrialia</city>
  <pin>9</pin>
  <zip>ac</zip>
  <phone>04</phone>
 </states>
 <states>
  <city>Canada</city>
  <pin>8</pin>
  <zip>pc</zip>
  <phone>54</phone>
 </states>
</country>

Expected Output XML:
<country>
  <city type="Albama">
   <pin type="1">
    <zip type="aa">
     <phone type="12"/>
    </zip>
    <zip type="ab">
     <phone type="11"/>
    </zip>
    <zip type="ac">
     <phone type="14"/>
    </zip>
   </pin>
  </city>
<city type="Austrialia">
   <pin type="9">
    <zip type="ac">
     <phone type="04"/>
    </zip>
   </pin>
  </city>
<city type="Canada">
   <pin type="8">
    <zip type="pc">
     <phone type="54"/>
    </zip>
   </pin>
  </city>
</country>
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