Srei lenders weigh forensic audit of two group firms

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

Lenders to Srei group are planning to conduct forensic audits of two companies, Srei Infrastructure Finance and Srei Equipment Finance, two people aware of the development said.

The Kolkata bench of the National Company Law Tribunal had set two dates for creditor meetings on December 16 and 23, meant to ratify the proposal to transfer assets between two Srei firms. (Mint File Photo)

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

“The audit is being considered after an agency for specialised monitoring (ASM) appointed for Srei’s loans raised some queries,” said a banker, one of the two people cited above. “Such agencies are used by lenders to monitor cash inflows, outflows and several other parameters, to submit detailed reports on borrowers. We want to dig deeper into queries raised by the ASM report,” the banker said, adding a forensic audit may take about three months to be completed.

A Srei spokesperson said in an emailed response: “As we have mentioned to you on multiple occasions, there is a motivated campaign to spread fabricated and false information. We will request you to not pay heed to any unsubstantiated claims made by individuals/groups who choose to stay anonymous and are not able to provide documentary evidence in support of their claims.”

Asked about the voting, the Srei spokesperson said the company cannot comment on the matter as it is sub judice. Srei is fully engaged with creditors, and expects an orderly outcome in the best interest of all stakeholders, the person said.