Srei Lenders Assess Forensic Audit of Two Group Companies

Srei is fully engaged with creditors and expects an orderly outcome in the best interest of all stakeholders, a spokesperson said.

Mint, New Delhi | ByShayan Gosh

Srei Group lenders plan to conduct forensic audits of two companies, Srei Infrastructure Finance and Srei Equipment Finance, two people familiar with the development said.

A final decision will be made at a meeting of the core lenders to be held in the coming weeks, according to the people quoted above.

“The audit is being considered after a Specialized Monitoring Agency (ASM) commissioned for Srei’s loans raised some questions,” said a banker, one of the two people named above. “These agencies are used by lenders to monitor cash inflows and outflows and several other parameters, to submit detailed reports on borrowers. We want to dig deeper into the issues raised by the ASM report,” the banker said, adding that a forensic audit could take around three months.

A spokesperson for Srei said in an emailed response: “As we have told you many times, there is a motivated campaign to spread fabricated and false information. We will ask you to disregard unsubstantiated claims made by individuals/groups who choose to remain anonymous and are unable to provide documentary evidence to support their claims.

According to the first person, lenders on Wednesday also voted against Kolkata-based Srei’s proposal to consolidate its lending business into Srei Equipment Finance. The Kolkata bench of the National Company Law Tribunal had set two dates for creditors’ meetings on December 16 and 23, intended to ratify the proposed transfer of assets between two Srei companies.

Asked about the vote, Srei’s spokesperson said the company could not comment on the matter as it was pending. Srei is fully committed to creditors and expects an orderly outcome in the best interests of all stakeholders, the person said.

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