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Binny
BSE: 514215|ISIN: INE118K01011|SECTOR: Textiles - Spinning - Cotton Blended
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« Mar 12
Notes to Accounts Year End : Mar '13
1.  As per the Sanctioned Scheme of Arrangement by the High Court of
 Madras dated 22/04/2010 the management has implemented all the terms of
 the Scheme. SEBI has approved the Relaxation of Rule 19 (2) (b) of the
 Securities Contracts (Regulation) Rules, 1957 of Resulting Companies'' 
 during March, 2013. The Listing / Trading of Resulting Companies'' 
 shares are under process. Upon completion of formalities, the change 
 in Directorship and interse transfer of shares among the Promoters 
 shall be complied with.
 
 2.  Revaluation Reserve is as per the Scheme of Arrangement Sanctioned
 by the High Court of Madras.  The outstanding Revaluation Reserve
 Rs.4906.62 lakhs (P.Y. 4910.50 lakhs) represents the adjusted amount of
 fixed assets (Land) revalued as per the Sanctioned Scheme effective
 from 01.01.2010.
 
 As per the MOU entered into with workers during the year 1000 sq.ft. of
 land (P.Y. 1500 sq. ft) has been transferred / sold to the workers as
 agreed. The revaluation reserve on these sales of land has now been
 reduced from the Fixed Assets and Revaluation Reserve account.
 
 3.  Long Term Borrowings: Unsecured
 
 The company was receiving the loans from the Promoters individually and
 through their group companies since 1994, to meet the requirements of
 rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme
 of Arrangement of Hon''ble High Court of Madras the company has
 recorded a sum of Rs.3998.62 lakhs as unsecured loan due to promoter
 group. The balance sum of Rs.100.20 lakhs has been received from
 promoters group are shown separately, for which the confirmation of
 balance are pending. All the loans are interest free and repayable on
 demand.
 
 4.  Binny Engineering Limited (BEL)
 
 Investment & Advances to subsidiary company - BEL
 
 The investment in subsidiary are considered to be long term in nature.
 The Management has not provided for diminution in value for the
 carrying amount as at the balance sheet date.
 
 The company has advanced a sum of Rs.1148.52 lakhs (Previous Year
 Rs.435.49 lakhs) to Binny Engineering Limited for meeting their
 liabilities such as interest on PF, ESI contribution, Sales Tax
 etc. Considering the advances are recoverable in the ordinary course of
 business, the Management decided to carry these amounts at cost and no
 provision has been made.
 
 5.  Contingent Liabilities
 
 No provision is considered necessary in respect of the following
 contingent liabilities as the management is hopeful of getting relief /
 succeeding in the appeals:
 
                                        31.03.2013      31.03.2012 
 
                                               (Rs. Lacs)
 
 a) Electricity charges on revision 
 of Tariff rates for the period
                                           117.50           117.50 
 from
 
 1-12-82 to 31-12-87 contested by 
 the company, the recovery of which is
 stayed by the Hon''ble High Court 
 of Madras
 
 b) Estimated surcharge on belated 
 payment above upto                        700.31           672.11
 31/03/2013
 
 c) Claim for back wages in respects of 
 various disputes Liability, if
 any, not ascertainable
 
 d) Income Tax demand for Asst. 
 Year 2008-09                               19.21            19.21
 
 e) Wealth Tax Demand for Asst. 
 year 1993-94 to 2010-11                  2553.77          2553.77
 
 f) Income Tax demand for Asst. 
 Year 2010 - 2011                        11464.23            Nil
 
 6.  Other Moneys for which the 
 company is contingently liable
 
 a) Claims against the company not 
 acknowledged as Debts                     131.32           156.43
 
 7.  Balances in Trade receivable, Trade payable and Loans and Advances
 are subject to confirmation/ reconciliation. However, in the opinion of
 the Management, all current assets, debtors and loans/ advances would
 in the ordinary course of business realize at the value stated.
 
 8.  To comply with the Accounting Standard - 22 - Accounting for Taxes
 on income, the company reviewed the deferred tax assets and
 liabilities. The timing differences relates mainly to depreciation and
 carry forward losses for the period up to 31-03-2013 resulting in a Net
 Deferred Tax asset. As a prudent measure, this net deferred tax asset
 has not been recognized in the accounts.
 
 9.  a. The company has received wealth tax demand for the Asst. Year
 2004-05 to 2010 - 2011
 
 Rs.1060.18 lakhs against which the company has filed appeals with CWT
 (A). A/Y 1993-94 to 2003-04 Rs.1493.59 lakhs against the company has
 filed appeals with ITAT, Chennai. Against these demands a sum of
 Rs.648.66 lakhs has been paid under protest. Considering the
 company''s chance of success in appeal no provision has been made in
 the accounts.
 
 b.  The company has received Income Tax demand for asst. year 2008 - 09
 Rs.19.21 lakhs which is disputed before CIT (A). Company also received
 Income Tax demand for Asst.  Year 2010 - 2011 demanding a sum of
 Rs.11464.23 Lakhs, additions were made on flimsy grounds, and company
 has filed appeals before CIT (A). Considering the company''s chance of
 success in appeal no provision has been made in the accounts.
 
 10.  Related Party Disclosure (a) List of Related Parties
 
 (i) Parties where control exists Subsidiary
 
 Binny Engineering Limited (BEL)
 
 (ii) Other related Parties with whom transactions have taken place
 during the year Associates
 
 S.V. Sugar Mills Ltd (SVSM)
 
 The Thirumagal Mills Ltd (TML)
 
 Mohan Breweries & Distilleries Ltd (MBDL) TCP Ltd S V Global Mill Ltd.
 (SVG)
 
 Binny Mills Ltd (BML)
 
 (iii) Key Management
 
 Personnel M. Ethiraj
 
 E.  Shanmugam M. Nandagopal V.R. Venkataachalam Arvind Nandagopal
Source : Dion Global Solutions Limited
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