> ## Content Index > Fetch the complete content index at: https://www.adriadefense.com/llms.txt > Use this file to discover other available public pages before exploring further. # Bosnia’s Binas Reports €7.76 Million Profit as Audit Flags €16.15 Million in Supplier Transactions - URL: https://www.adriadefense.com/bosnias-binas-reports-eur7-76-million-profit-as-audit-flags-eur16-15-million-in-supplier-transactions/ - Published: 2026-10-29T10:00:00.000Z - Updated: 2026-10-29T10:00:00.000Z - Description: Bosnian ammunition manufacturer Binas reports €7.76 million in profit, while federal auditors flag procurement control weaknesses covering €16.15 million in supplier transactions. - Author: AdriaDefense Desk - Tags: Bosnia and Herzegovina, SEE, Defense Industry, Binas Bosnian ammunition manufacturer Binas reported a net profit of approximately €7.76 million and revenue of €32.64 million for 2025, but a federal audit has raised serious concerns about the reliability of its financial statements and the procedures used for supplier transactions worth €16.15 million. The state-controlled defense company, based in Bugojno, received an adverse opinion on its 2025 financial statements from the Audit Office of the Institutions of the Federation of Bosnia and Herzegovina. The report was published on September 30, 2026, and has drawn renewed media attention in recent days. Auditors concluded that the financial statements did not fairly present the company's financial position and performance in all material respects. They also issued a qualified opinion on compliance with applicable regulations and made 28 recommendations for corrective action. ## Strong Revenue Growth Driven by Ammunition Exports According to the company's reported financial results, Binas generated approximately €32.64 million in revenue during 2025, compared with €23.28 million a year earlier. The increase of around 40% reflects the expansion of production and sales amid growing international demand for ammunition and military components. Foreign sales of finished products accounted for approximately €25.16 million, while domestic sales contributed €6.85 million. The company reported net earnings of €7.76 million, although the audit findings raise questions about the reliability of several accounting figures. Binas manufactures 40 mm ammunition, artillery and mortar fuzes, cannon primers and hand grenades. The Federation of Bosnia and Herzegovina holds a 51% ownership stake, with the remaining shares held by private investors. The company has expanded production and recruitment in recent years as Bosnia's defense manufacturing sector benefits from increased demand in European and international markets. [AdriaDefense previously reported on Binas's manufacturing expansion and financial recovery](https://www.adriadefense.com/binas-expands-production-as-bosnias-defense-industry-recovery-accelerates/) in March 2026. ## Auditors Question Procurement Procedures Covering €16.15 Million One of the most significant findings concerns supplier transactions totaling approximately €16.15 million during 2025. According to the audit, Binas had not adopted comprehensive internal procurement procedures, prepared an annual procurement plan or produced a report documenting the implementation of purchasing activities. The company also failed to provide sufficient documentation allowing auditors to verify whether procurement activities had been conducted under competitive, transparent and economically favorable conditions. The audit findings do not establish that the money was stolen or misappropriated. Rather, they identify weaknesses in procurement controls and supporting documentation that prevented auditors from confirming whether transactions met the required standards. Binas also engaged subcontractors for manufacturing and finishing operations, including Steel Company, NIHO-MOTORS and UNIS-matic, with payments totaling approximately €3.55 million. ## Accounting Weaknesses Raise Questions About Reported Profit The auditors identified additional deficiencies concerning asset valuation, inventory accounting, outstanding receivables and liabilities. Binas had not adequately assessed whether fixed assets with a carrying value of approximately €5.74 million had suffered impairment. Auditors also identified deficiencies in production cost accounting, including the treatment of direct and indirect manufacturing expenses. Receivables overdue by more than one year, amounting to approximately €586,000, had not been adequately adjusted for expected credit losses. In addition, liabilities of approximately €491,000 arising from final court judgments had not been recorded in the company's accounts. These issues could affect the company's reported assets, liabilities and financial performance. The audit also identified weaknesses in the annual inventory process and unresolved issues concerning the recognition of state capital following earlier financial restructuring measures. Of the 28 recommendations issued to Binas, 17 had already appeared in the previous audit covering 2021\. The auditors criticized the limited implementation of earlier corrective measures. ## Industrial Growth Accompanied by Financial Challenges Despite the accounting concerns, Binas has continued expanding its manufacturing activities and workforce. The audit records show that 120 employees were hired during 2025, while 34 employment relationships ended. However, the company also carried substantial outstanding obligations related to salaries, taxes and social contributions from previous years. These historical obligations stood at approximately €4.37 million at the end of 2025 before declining to around €2.92 million by July 31, 2026. The findings highlight the challenges facing parts of Bosnia and Herzegovina's expanding defense industry, where increasing orders and production volumes are placing additional demands on financial management, corporate governance and procurement systems. For Binas, addressing the audit recommendations will be important for demonstrating that its industrial recovery is supported by reliable financial reporting and effective internal controls. The next developments will depend on how the company's management and supervisory bodies respond to the recommendations and whether subsequent audits establish measurable improvements. **Sources:** [Audit Office of the Institutions of the Federation of Bosnia and Herzegovina](https://www.vrifbih.ba/izvjestaj/izvjestaj-o-finansijskoj-reviziji-binas-d-d-bugojno-za-2025-godinu/?ref=adriadefense.com)