Some updates -
Best
Bheeshma
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@bheeshma,
Thanks for the update. What were the questions for the response items 2 & 3, is it about the delay of results?
Did you ask anything about the status of the CMDA approval or the RERA registration?
When I called SPR sales, they told me that they will be open for bookings again for this project starting November 15th. This should be taken with a pinch of salt as they just repeat what they are told to say.
@bheeshma
Thanks a lot for update on this issue. The company getting into Z group was a big surprise for me (and possibly for many other investors). I have invested in Binny around current level and I am waiting to invest more.
If they have taken up the issue and if they are working to resolve the Z group issue, I think the stock should be out in next review from BSE. This should be a short term positive.
The other q/s were related to moving of the stock to the z group and the delay in publishing results. I will followup on the rest of the doubts with the CS. If anyone has other queries, do let me know so that i can try and get some clarity.
Best
Bheeshma
1 Like
Dear Sir, In Fin result they have shown 25cr as other expenses , thats a big amount , can you try to get details of other expenses. Experts have raised doubt over it
Regards
Just now received Annual Report. And, AGM is on 29 November. This will be interesting. I wonât be able to attend this year but I will wait for comments from senior members on this forum after AGM.
Annual report for 2016-17 ? Can u share plz .
Bheeshma sir, are you going to attend the AGM? I am very tightly placed in this time slot.
But if you and others are coming, I will push me to make it.
Thanks Sir for report.
From AR
On the sale of 14.06 acres of Perambur Barracks Road property for a consideration of Rs.37000 lakhs,
a reduction of Rs.1863.88 lakhs was allowed to the Purchaser towards land shortage value and a
claim by the Purchaser towards compensation for delay in clearance was settled at Rs.804.94 lakhs
and the same have been grouped under âOther Expensesâ and the increase on âOther Expensesâ is
mainly on account of this.
Debt: at the end of FY-17 , only 60 lakh.
DISC: holding
Dear Bhesshma,
Thanks for sharing AR 2017. I joined this forum few months before and raised one query on this thread before. It will be helpful if you can share your views on below queries.
1- In AR 2017, there is an increase of 155 crore in âdue from othersâ. No details are given on the kind of transaction. Is Binny paying to JV ?
2- In AR 2017, short term loans and advances, another 10 crore paid for windmill. As per my understanding the transaction with Mohan Breweries and Distilleries Ltd for purchase of windmill is cancelled and an amount of 60 crore is pending from them which was given as advance. Is the 10 crore for setting up a green field project? Also note there is an addition of 21 crore in long term loan and advances for Land Purchase.
3- This question I have asked here before. There is an amount of 383 crore with Mohan Breweries which was given for purchase of land /windmill and the same was cancelled later. Nearly 20-40 crore added every year as NCD interest towards Mohan Breweries when 383 is pending from them. Interest is added in contingent liabilities side.
Other notable difference I saw is the statement â The JDA Partner has obtained No Objection Certificates (NOCs) from various Government Authorities and has applied to CMDA for plan approval to commence Constructionâ. As per AR 2016, they were waiting for NOC.
Discl : Holding shares @130 level, booked partial profit at higher level. Adding around current level and below.
thankyou for ur updates ⌠great work âŚ
can u give ur inputs for source industries india ltd ⌠penny stock ⌠they also hold land parcel in hyderabad ⌠some construction activity photo was updates few months back now not seen too âŚ
@bheeshma
Tried to get details directly from company on the increase of 155 crore in due from others - Note 12. The response was little rude!!!
Reply below
The Audited Financial Statements of the Company for the year ended 31.3.2017 have been circulated to all the shareholders including yourself, with necessary details and break-up, as required to be given under the law.
I cant find any details other than the one line below
Others 19574.60 4,000.00
where 195 crore is march 2017 figure and 40 crore Mar 2016.
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Does the law allow such a huge sum to be used for any purpose known only to the promoter and not disclose details to the shareholders? Strange. Can someone throw light on regulations around this.
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UC today after a long time. Donât want to make this a moneycontrol forum. But interested to know if someone got any other positive response from the management for their investor query, or could it be pre-AGM speculation.
Print media coverage of the project beginning to emerge. Hereâs what I read on The Hindu paper TN edition, today.
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But I thought the construction of apartment towers has already started and they have completed at least 2 floors.I donât understand what they mean by binny to begin work on township early next yearâŚ
I guess, they are referring to the âofficialâ launch of the project as opposed to a âpre-launchâ or a âsoft-launchâ. The project is still code named without an official name. I believe they started the residential construction based on the NOCs they have already obtained. CMDA approval was still pending when I last enquired them about a month ago.
Attended the Binny AGM . Under estimated chennai traffic and missed the first 30 minutes of the meeting.
This is the little information that I could gather. I could have misinterpreted a few points, others feel free to correct them
- A lot of investors raised the issues of corporate governance, delayed results. The standard answer from the CFO was that the director resignation was unexpected and so the delays were unexpected
- To a query on why the promoters expect exorbitant interest (18% for NCDs) for the money that the company owes them and not pay any interest on the money that they owe to the company. The management responded saying that the independent directors have already raised this issue and that interest will be paid by the promoters. They did not say at what percentage but the chairman assured that it will not be less than the interest rate that the company pays them for their money. They did not mention if the interest will be backdated.
- A large investor said that he ensured that the resolution to buy the promoters land (in valasaravakkam, chennai) did not get passed by the shareholders by voting against it. He said that he did so thinking that the promoters were siphoning off money. The management responded saying that the going rate in valasaravakkam was rs. 12000 per sq ft and that they were selling it cheap to fund their Brewery business. The large investor seemed happy with their response and promised that he will ensure the passing of the resolution if they were to bring it up to the shareholders again. In fact he wanted them to pass a second resolution on this with more information on why buying the land was beneficial to binny, and the management seemed to be approving of it.
- Investors raised their voice against any windmill plans and the CFO indicated that they were not going to pursue windmill business.
- To a query on dividends, the chairman said âPlease wait for sometimeâ.
- Promoter assured the investors that the âmoney was never siphoned offâ as people may think. To quote him exactly, he also added âmoney is thereâ.
After the meetingâŚ
- Met a couple of investors who are holding on to this company for about 30 years, also met someone who has purchased residential units from the proposed township and was also holding shares of Binny Ltd.
- None (except me) seemed to care about the current stock price.
- I asked the big investor on what his feeling was after the AGM, he suggested that I keep the shares for my next generation, of course he will be biased.
Discl: I am invested and may be biased.
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@anandr Thanks a lot for your inputs.
My current assessment is that the management is not from the best one can get. But, majority of companies with lower stock price are suffering due to bad management. The interest rate issue was actually pretty alarming sign of management fooling shareholders. It is good that they agreed to resolve it.
And, about the large investor talking about keeping the stock for next generation, I would keep it till the time it reaches 1000 level.
Disc: Invested around 220.