Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Moneycontrol.com India | Notes to Account > Miscellaneous > Notes to Account from Binani Industries - BSE: 500059, NSE: BINANIIND
YOU ARE HERE > MONEYCONTROL > MARKETS > MISCELLANEOUS > NOTES TO ACCOUNTS - Binani Industries

Binani Industries

BSE: 500059|NSE: BINANIIND|ISIN: INE071A01013|SECTOR: Miscellaneous
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
, 16:01
6.34
0
VOLUME 3,023
LIVE
NSE
, 16:01
6.20
0
VOLUME 3,568
Mar 16
Notes to Accounts Year End : Mar '18

NOTES TO STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018

(All amounts in INR lakhs, unless otherwise stated)

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

(A) Credit risk

The company is exposed to credit risk, which is the riskthat counter party will default on its contractual obligation resulting in a financial loss to the group. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost, derivative products and deposits with banks and financial institutions, as well as credit exposures to trade/non-trade customers including outstanding receivables.

(i) Credit risk management

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as: i) Actual or expected significant adverse changes in business, ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations, iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Ageing of Account receivables

Particular

As at March 31, 2018

As at March 31, 2017

Not due

-

-

0-180 Days

113.26

2,577.64

181-360 Days

2,435.60

823.84

1 years to 2 years

129.75

161.32

More than 2 years

152.03

10.85

Total

2,830.64

3,573.65

Financial Assets are considered to be of good quality and there is no significant increase in credit risk. (B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, group treasury maintains flexibility in funding by maintaining availability under committed credit lines.

NOTES TO STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018

(All amounts in INR lakhs, unless otherwise stated)

Particulars

As at March 31, 2018

As at March 31, 2017

Short term borrowings/ (CD''s

Binani Cement Limited ( refer note 45 )

114,857.24

Edayar Zinc Limited

3,346.59

3,346.59

Shiv Ganga Agency Private Limited

5769.00

-

Other Payable

Binani Cement Limited ( refer note 45 )

0.66

Deposits

Triton Trading Company Private Limited

5.40

5.40

Trade payable

Golden Global Pte Limited (Assignee of Promoter)

529.27

529.27

Nirbhay Management Service Private Limited

22.50

50.98

Triton Trading Company Private Limited

270.21

1.15

Megha Mercantile Pvt. Ltd.

29.27

4.10

Remuneration Payable

Mr. Visalkshi Sridhar ( CFO, Manager and Company Secretary )

3.41

Nil

Interest payable on (CD''s

Binani Cement Limited ( refer note 45 )

10,285.17

Edayar Zinc Limited

949.63

949.63

Outstanding Corporate Guarantees given to Financial institutions and banks in respect of loan to subsidiaries /step down subsidiaries of the company

Goa Glass Fibre Limited

321.07

1,445.00

Binani Cement Limited ( refer note 45 )

323,974.71

3B Binani Glass Fibre SARL ( Refer note below ** )

178,240.38

181,665.57

BIL Infratech Limited

7,453.49

9,310.00

Edayar Zinc Limited

24,440.75

24,532.00

Note:

* Restated as exchange rate of March 31, 2018

** jointly and severally with other subsidiaries/ step-down subsidiaries

39 OBLIGATIONS TOWARDS OPERATING LEASES

The Company has entered into an operating lease agreement for Motor Vehicle w.e.f. May 19, 2017. Lease payments recognised in the Statement of Profit and Loss Rs.7.58 lakhs (As at March 31, 2017 : Rs. 14.13 lakhs ).

The total future minimum lease rentals payable as at the Balance Sheet date is as under:

Particulars

For the Year Ended March 31, 2018

For the Year Ended March 31, 2017

Fora period not later than one year

10.10

-

For a period later than one year and not later than five years

12.63

-

40 As per the accounting policy of the Company of fair valueing the financial instruments, [refer note 2 (13)(a)], the net increase in restated fair value credited to BRR of Rs. 7,847.49 lakhs (As at March 31, 2017 decrease by Rs. 678.07 lakhs).

41 In accordance with the accounting policies as stated in note 40 above the Company has withdrawn an amount of Rs 5,353.17 lakhs from the BRR and credited the same to the statement of Profit & Loss so as to offset the following expenses debited to the Statement of Profit and Loss during the year ended March 31, 2018. (March 31, 2017 : Rs 5,854.02 lakhs)

Particulars

For the Year Ended March 31, 2018

For the Year Ended March 31, 2017

Interest and Financial charges (net of Interest Income)

4,603.70

4,874.30

Foreign Exchange Loss

659.81

975.62

Interest on Settlement of liabilities

39.84

-

Loss / ( profit ) on sale of Invesment ( Net )

2.17

4.10

Unutilised Taxes

47.64

-

Total

5,353.17

5,854.02

If such accounting policy had not been adopted, the net profit for the year ended March 31, 2018, would have been lower by and the Business Reorganisation Reserve as on March 31, 2018 would have been higher by the said amount of Rs 5353.17 lakhs (As at March 31, 2017 : 5,854.02 Lakhs) and the Earnings Per Share would have been lower by Rs 17.07 (As at March 31, 2017 :18.66 ).

42 Earnings Per Share:

Particulars

For the Year Ended March 31, 2018

For the Year Ended March 31, 2017

Profit /(Loss) after Tax

(504.69)

1,067.33

Weighted Average number of Shares used in computing Basic Earnings Per Share

31,368,025

31,368,025

Basic Earning per Share (in ?) (Refer note 41 above)

-1.61

3.40

Diluted Earning per Share (in Rs.) (Refer note 41 above)

-1.61

3.40

43 One of a creditor had filed a winding up petition on November 19, 2016 against the Company with the Horible High Court of Calcutta and has been admitted by the Court on September 20, 2017. The Company has already arrived at a settlement agreement with the Creditor and is seeking recall of the order. The Company has entered into a settlement with such creditor by agreeing to pay its entire dues along with interest as mutually agreed.

44 The Company was providing Logistics Services to one of its subsidiary i.e. BCL (subsidiary till July 24, 2017). The said subsidiary is now taking logistics services from other vendors. The Company is in process of finding alternate business opportunities.

45 Binani Cement Limited (BCL), a major subsidiary was admitted under the Corporate Insolvency and Resolution Process (CIRP) in accordance with the Insolvency and Bankrupcy Code, 2016 (IBC) dated July 25, 2017 and a Resolution Professional was appointed. Effective from July 25, 2017 the Board of Directors of BCL were suspended and effectively Binani Industries Limited (BIL) lost control over BCL with regards to operational and financial decision-making powers and derive economic benefits from its activities. This has resulted in the following:

a. The Company has not received the consolidated management or audited accounts duly signed by the Resolution Professional (new management) for the period April 01, 2017 till July 24, 2017 (date upto which the company had control). The last date for completion of the CIRP is June 23, 2018 or such date as may be extended by adjudicating authority, hence the Company has made application to SEBI requesting time till end of August 2018 to declare consolidated financials results for the year ended March 31, 2018.

b. The Company has investment in equity shares of Binani Cements Ltd (BCL) having a carrying amount of Rs. 3,39,739 lakhs as on March 31, 2018 and March 31, 2017 and in non-cumulative redeemable preference shares of BCL amounting to Rs 1,621 lakhs as at March 31, 2018 and Rs. 1501 lakhs as on March 31, 2017 (Cost: Rs 6,002 lakhs). In July 25,2017, pending the final outcome of the CIRP, the management of the Company has continued to the value of these Investments in BCL at the fair value arrived as on March 31, 2017. Also the Company has loans and advances Rs 700 lakhs, security deposits of Rs. 100 lakhs and trade receivables of Rs 1362.10 lakhs due from BCL and the ultimate recoverable amount of these dues is not known and uncertain.

c. Having regard to the ongoing Corporate Insolvency and Resolution Process in respect of BCL there are various news being reported / appear in public domain involving/ mentioning about the Company, BCL, Promoters and other group companies however the management of the Company is unaware of any matter, investigation or allegation, open or close, involving the Company, management of the Company, promoters or other group companies which requires adjustment/disclosure in the financial results of the Company.

46 The management is working towards finding a workable solution to resolve the financial position by discussion with the lenders and others and to continue its business as going concern. Accordingly, the management considers it appropriate to prepare these financial statements on a going concern basis.

47 The Company had initiated the process of identifying the suppliers who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Since no intimation has been received from the suppliers except Legasis Services Pvt. ltd. regarding their status under the said Act as at ''March 31, 2018, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

Name of Company register under MSME Act,2006

Amount outstanding as at March 31, 2018

Legasis Services Pvt. Ltd.

2.45 Lakhs

48 As per the Debts Recovery Tribunal (DRT) order on the Securitization Application, Edayar Zinc Limited (EZL), a subsidiary company, were to pay Punjab National Bank (lender to subsidiary) Rs. 25,000 per day till the order being finalised by the DRT on behalf of the Consortium of Banks. Owing to the paucity of funds of the subsidiary, the company is paying this amount on behalf of the subsidiary. The amounts paid till March 31, 2018 is Rs. 247.50 lakhs (March 31, 2017 : Rs. 156 lakhs). The Consortium of Banks led by Punjab National Bank (PNB) have taken symbolic possession of the assets situated at Binanipuram, Kerala under SARFESI Act, 2002.

49 The Company has stopped providing Corporate support services related to Accounting, Finance, Treasury, Forex/ Commodity Risk Management, Purchases, Audit, Taxation, Corporate Strategy, Media Services, Credit Rating, Legal Services, Market Research, Quality Control, Project Management, branding and trademark, etc. to its subsidiaries / step down subsidiaries as it was not remunerative / being managed by Resolution Professional / stopped operations.

50 No events or transactions have occurred since the date of Balance Sheet or are pending that would have a material effect on the financial statements for the year ended, other than those reflected or fully disclosed in the books of accounts.

51 Previous year''s figures have been reclassified and regrouped considered necessary.

The accompanying notes 1 to 50 are integral part of these financial statements. As per our report of even date attached

For MSKA & Associates

For and on behalf of the Board Binani Industries Limited

Chartered Accountants

ICAI Firm Registration No. 105047W

Anita Somani

Visalakshi Sridhar

Rajesh Kumar Bagri

Nilesh R. Doshi

Partner

CFO, Manager & Company Secretary

Director

Director

Membership No: 124118

M.No. ICSI-A13849

DIN: 00191709

DIN: 00249715

AICWA- M2113

Place: Mumbai

Place: Mumbai

Date: May 30, 2018

Date: May 30, 2018

Source : Dion Global Solutions Limited
Quick Links for binaniindustries
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.