Binny Ltd - own property in the heart of Chennai at 1/10th the cost!

(Saurav Rathi) #226

Hi Bheeshma

Thank you for this thread and it has made up for a very interesting read. Given that the TN RERA site now shows info regarding the projects, how do you look at this moving forward? Is it a good time to invest in the script? Also, @anandr @inteliinv would love to hear your take on this as well.

Disc- Not invested, actively tracking.

P.S.- This is my first post and apologies if I have unknowingly violated any of the T&Cs.

(Bheeshma Sanghani, PhD) #227

The revised JDA between binny and spr would be a key aspect. The other risk is the whether the binny mgt is shareholder friendly or not - this is an area where there are doubts and its a judgement call.

(anand) #228

Watch SPR City Exclusive coverage by CNBC TV18 on Sunday (18th March) at 5:30 PM in CNBC Bajar .

(sri krishna bhutra) #229

Link to SPR City Project

(sri krishna bhutra) #230

Following are the questions I had asked the CS / CFO of the company on mail and their replies.

  1. What is the company planning to do with the cash it received from SPR and other companies for land parcels?

The money has been deployed in the Business as detailed in the Annual Report

  1. Cash was given to other related parties, has it been collected back as the company is not venturing into wind power?

The Company is in the process of recovering the amount and it will be informed to the shareholders after it is collected

  1. Is the company planning to distribute dividend to shareholders or do a buy back of shares.

The Board will take the decision at appropriate time.

  1. What is the JDA between Binny and SPR for SPR Binny city project? Kindly share the JDA with investors?

The main terms of the JDA as approved have been disclosed to the shareholders in the appropriate places and necessary disclosures also have been made to the Stock Exchange

  1. Why is Binny raising 50 crores of debt from Piramal?

The Company has availed the loan for the purpose of settlement of Income Tax dues

(sri krishna bhutra) #231

Link for the same

(anand) #232

18% interest charged for advances given to related party, as promised in the AGM (see my AGM post above)
and a few more in the latest announcement…

(sri krishna bhutra) #233

Thanks for the update.


(anand) #234

(Krppi Jain) #235

Today Launched 3 Tower Of 45 Floor @7199 Per Sqft…SPR HIGH LIVING


2BHK 1335-1404 SQFT

3BHK 1952 -2189 SQFT

4BHK 3161-3715 SQFT

(anand) #236

Revenue from operations 43.98 crores. No clarity on the income source. Could it be the from the JV?

(sri krishna bhutra) #237

Could be due to selling of land and partially due to interest income. (25+18) crores

Sri Krishna Bhutra

(Shobitha) #238

But why no income reported due to sale of flats ? from Spr customer support, I hear them saying more than 70-80% of the flats are booked…and now tower 1 is also launched…

(anand) #239

In the past (before cmda approvals) management had indicated that they will report numbers only after the registration of undivided share of land to the buyers.

When I spoke to a sales guy at spr recently, he said that the registrations have begun (I don’t know from when).

(sri krishna bhutra) #240

My recent interaction on the mail with the CS

  1. When can we expect the revenues from Spr Binny project to flow into P&L statement.

you can refer to our Significant Accounting Policies given in the Annual Report under the head “Revenue Recognition” where in it is clearly mentioned that Revenue under Joint Development Agreement (JDA) will be recognised upon transfer of all significant risk and rewards of ownership and title by way of registering Undivided Share of Land (UDS) in favour of buyers. Only upon registration of UDS in favour of buyers, the revenue will be shown into P & L Statement

  1. Is company looking at any other real estate projects?

The Companies is exploring the opportunities. If anything materializes, disclosures would be made at appropriate time


(Bheeshma Sanghani, PhD) #241

Thanks @inteliinv

Registering the deed of conveyance in favour of buyers will take a long time - maybe a few years. Deed of conveyance is the final step in a long line of formalities.

(anand) #242

The time period (for registration of UDS) should vary between different buyers depending on their ability to pay upfront, right?
Won’t the builder register the UDS and Construction agreement if a buyer is ready to pay a certain % (usually a lot more than the booking advance) of the total sale value upfront?

(Bheeshma Sanghani, PhD) #243

Registration of the agreement of sale is different from registering the UDS. UDS or deed of conveyance is registered after the construction is complete, all pymts to builder cleared, the occupancy certificate is got, the society or condominium formed and on completion of certain formalities relating to transfer of sinking fund/maintenance fund to the registered society. The final step is transfer of the land to the society. This takes quite a while if the land parcel is large and further development is envisaged on that parcel. Developers generally find new uses for the land or add some floors if they get extra TDR or extra FSI so its not easy to get them to do a deed of conveyance & its a long drawn out process.

(anand) #244

Is this something new with RERA? Why can’t the land be registered along with a construction agreement if payment is complete? Waiting for the construction to complete seems more pain for the buyer and advantageous for the builder.

(Bheeshma Sanghani, PhD) #245

the conveyance rules were a little different in TN pre rera. The buyers had an option not to register the sale agreement and could wait until the project was fully complete and then register the deed of conveyance or UDS. This bought down the cost of property as no tax was liable to be paid to the govt till such time the registration was done. So property flipping was rampant in TN and everyone participated including developers. Now in rera regime this rule has been normalized and the sale agreements have to be registered. TN has really flexible rules and to some extent rera has been able to mitigate it - but this practice continues if there is an understanding between the buyer and seller.