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

(shobi) #123

Hi @Bheeshma,

This forum is very helpful. Thanks for your analysis. Being a investor in binny I would like to hear your views about the following news on RERA act and it’s impact if any on binny ltd …

“Is RERA a building or a stumbling block for real estate sector? More the latter
For the real estate sector, the bigger issue is not the presence of RERA but rather the absence of RERA”. Here is why.

(Bheeshma Sanghani, PhD) #124

Hi @shobi

I am uncertain about the detailed impact of rera but broadly you can expect the sector to consolidate. I think some companies are good takeover targets. I am keeping out ann eye on that.


(anand) #125

As mentioned in one of my earlier posts, S.Natarajan, the plaintiff in this case, is a “minority” promoter / Director in Binny Ltd. We can hope that he can provide stiff resistance to selfish moves, if any, by rest of the “majority” promoters of Binny.

(Shobitha) #127

Hi @bheeshma

Any idea when the quarterly results of binny ltd will be released?


(Bheeshma Sanghani, PhD) #128

Hi @Shobitha

I am not sure about that. in their filings they said they needed 2 months time till end of july 2017 to approve audited accounts for 31.3.2017. I assume they will release 31.3.2017 and 30.6.2017 at the same time. Hoping to see an announcement today to that effect since its is 1.08.2017.

Lets see

(tkkabdulla) #130

5750 shares for Rs 3,32,638. Is it an old transaction reported now? Average price Rs 58.

(sri krishna bhutra) #131

Currently the company is having only one independent director available for board meeting out of 4. Whereas for announcement of results during board meeting atleast two independent directors must approve it. Hence the company hasn’t been able to declare the results yet. They are looking to appoint two independent directors to the board. Also the company has paid BSE some fine for not declaring the results yet.

(Bheeshma Sanghani, PhD) #132

The TN RERA rules have been notified on 23 June 2017. The net impact of these rules is that there will be a temporary curtailment of marketing & selling activity until the project acquires registration with the regulator and gets a RERA number. Registered brokers cannot sell unregistered projects & Unregistered brokers cannot sell registered projects.

In general, the GST input tax to be passed on to the customers and the RERA status are the two main drivers of the uncertainty surrounding real estate in general. By definition these things are temporary.

After notification projects have to get themselves registered within 3 months. This uncertainty in TN is a replay of the uncertainty in Maharashtra where projects had a 31jul deadline to get registered after the rules were notified on 20th Apr 2017.


(Bheeshma Sanghani, PhD) #133

June results to be out on or before 14/09

(cool_gaurav) #134

They are yet to declare March results (In one of the filing they have mentioned to declare by July end) and they are making announcement is made for June results & no update about the march results ? Complete lack of corporate governance (Not able to appoint the Independent directors for last 3-4 month?).

(Bheeshma Sanghani, PhD) #135

Hi @cool_gaurav

I think there are a couple of things that must be kept in mind

  1. The first one is the transition to IndAS. I am no expert, CA’s and experts can probably throw some light on this. As i understand if a companies Net Worth crosses 500cr for the first time in the accounting yr ended 31.03.2017 then it will have to apply for IndAS. That is what the circular is trying to say, again i am no expert so i guess this needs to be validated

  2. Land Owners will be treated as co-promoters after the project is registered under RERA. By 30.09.2017 projects in TN should be registered. I think that the JDA will need to be altered to make it RERA compliant by 30.09

  3. Some other uncertainties like Input credit to be passed to the customers etc need to be resolved

With so many changes happening on the accounting standards, RERA implementation, GST etc - i would tend to believe that the transition would take a a couple of quarters and hence there would be a temporary uncertainty. These uncertainties create doubt and sometimes they are valid & sometimes they are not. Also the stock has been falling so that adds to all the doubt and there is a thin line between doubt and panic.

As long as the operating business remains intact, i would like to wait till sept end.


(cool_gaurav) #136

Hi Bheeshma,

I am CA and As per MCA guidelines, every listed co. has to adopt IND As from 1st April 2017. I agree that Company need time for transition to IND AS but why they are withholding results for FY-16-17 creates doubt as IND As is not applicable for FY-2016-17 & they are not able to appoint Independent Directors till now & what’s the reason why earlier independent directors resigned? As far as point no.3 is concerned that is also not a big issue and can be resolved & that too came into force from 1st July only. In nutshell, I don’t find any reasons to withhold results for last quarter of FY-16-17 as per the reasons mentioned by you. I suggest you talk to the management and try to clarify.


(amit anam) #137

(Bheeshma Sanghani, PhD) #138

(Bheeshma Sanghani, PhD) #139

Hi all

Some updates based on my field checks

Currently the project ( Market of India) has stopped taking bookings due to transitioning into the new RERA regime which requires all approvals to be in place. The CMDA approval is pending but all the other major approvals are in place ( i.e Airport Authority, Environmental clearance and Fire & Safety).

The RERA approval is expected in October.

Pre RERA they had sold 65% of all the shops in quadrant A & B (There are 4 quadrants and the other 2, C&D are yet to be launched). The average rate of the shops ranges from Rs 12000 to Rs 15000 psf. As expected the fastest selling product is the small sized shop of 30L.

One interesting thing that caught my attention is that a part of the cost of the shop is an upfront payment contributed by the owners of the shop that will be used to develop an ecommerce website that will help them in selling their wares. This website is expected to be up by 2019 - 2020.

The key monitorable is the RERA registration in October which is the final reassurance that all approvals are in place. Till such time that happens everything should be viewed in the context of “if this then that”


(anand) #140

Thanks @bheeshma
Coincidentally, I also got a call from the developer sales guy, today, trying to sell one of their completed projects, gave me a chance to ask a few questions on their Binny project. Below is the information that I came to know, that is not on your post

  • I believe bookings for the residential project has also been stopped.
    -Construction of the residential project is progressing well and has reached the first floor of Tower A

Do you know if the developer signed sale agreements for UDS, with the buyers from prior bookings?
This is key in the short-term (as the expectations for the results are building up), the management had earlier indicated (in their prior results announcement) that the booking advances will be recognised as income only upon the execution of UDS agreements with the buyers.

(Bheeshma Sanghani, PhD) #141

Resignation of the Statutory Auditor - CNGSN & Associates

(anand) #142

This could be an internal restructuring within the auditor company, as many listed companies have switched over from CNGSN to SRSV this season. Example - Ramco, Celebrity Fashions, Radaan etc.

(anand) #143

While we watch paint dry, here’s a video to watch on MOI (Market of India) promotion.

(Storyteller) #144

Thanks. Delighted. Presentation is very crisp and precise. Captures the Activities and the scale leading to the event well. :star_struck: