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SREI Infrastructure Finance Ltd.

BSE: 523756 Sector: Financials
NSE: SREINFRA ISIN Code: INE872A01014
BSE LIVE 15:56 | 18 Oct 116.75 0.70
(0.60%)
OPEN

116.10

HIGH

119.00

LOW

115.15

NSE 15:53 | 18 Oct 116.95 0.75
(0.65%)
OPEN

116.40

HIGH

119.10

LOW

115.20

OPEN 116.10
PREVIOUS CLOSE 116.05
VOLUME 284066
52-Week high 137.70
52-Week low 68.95
P/E 59.57
Mkt Cap.(Rs cr) 5,874
Buy Price 116.75
Buy Qty 1038.00
Sell Price 0.00
Sell Qty 0.00
OPEN 116.10
CLOSE 116.05
VOLUME 284066
52-Week high 137.70
52-Week low 68.95
P/E 59.57
Mkt Cap.(Rs cr) 5,874
Buy Price 116.75
Buy Qty 1038.00
Sell Price 0.00
Sell Qty 0.00

SREI Infrastructure Finance Ltd. (SREINFRA) - Auditors Report

Company auditors report

To the Members of

Srei Infrastructure Finance Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Srei InfrastructureFinance Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls andensuring their operating effectiveness and the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub–section (11) of Section 143of the Act we give in "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

(2) As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in "Annexure 2".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements – Refer Note No. 27 to the standalonefinancial statements;

(ii) The Company did not have any long–term contracts including derivativecontracts for which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

(iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the Management – Refer Note No. 38to the standalone financial statements.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
9th May 2017 Membership No. 056613

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report of even date to the members of theCompany on the standalone financial statements for the year ended 31st March 2017]

(i)

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the Company has aprogramme of verification of fixed assets to cover all the items in a phased manner over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its fixed assets. Pursuant to the programme certain fixedassets were physically verified by the Company's Management ("management")during the year. As informed and explained to us by the management no materialdiscrepancies were noticed on such verification.

(c) The title deeds of immovable properties recorded as fixed assets in the books ofaccount of the Company are held in the name of the Company except as detailed hereinbelow :–

Land / Buildings Total number of cases Leasehold / Freehold Gross Block as at 31st March 2017 (Rs. In Lacs) Net Block as at 31st March 2017 (Rs. In Lacs) Remarks
Bulidings 2 Freehold 9967.98 8792.72 Conveyance is pending

(ii) According to the information and explanations given to us in respect of equityshares held as stock for trade the same has been physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable. As explainedto us no material discrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Act. (iv) According to the informationand explanations given to us in respect of loans investments guarantees and securitythe Company has complied with the provisions of Sections 185 and 186 of the Act. (v) Inour opinion and according to the information and explanations given to us the Company hascomplied with the directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder with regard to the acceptance of deposits. Further as informed no Order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or any other Tribunal on the Company in respect of the aforesaiddeposits.

(vi) Being a Non–Banking Financial Company the provisions of clause 3(vi) of theOrder with regard to the maintenance of cost records are not applicable to the Company.

(vii)

(a) According to the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income–tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other material statutory dues have generally been regularlydeposited with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable. (b) According to theinformation and explanations given to us the dues as at 31st March 2017 of income taxsales tax service tax duty of customs duty of excise and value added tax which havenot been deposited on account of any dispute are as follows :

Name of the Statute Nature of dues Amount (Rs. In Lacs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act1961 Income Tax 471 2005–06 and 2006–07 Supreme Court of India
Income Tax Act1961 Income Tax 125 2006–07 and 2007–08 CIT(Appeals) Kolkata
Income Tax Act1961 Income Tax 986 2007–08 Income Tax Appellate Tribunal Kolkata
Name of the Statute Nature of dues Amount (Rs. In Lacs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act1961 Income Tax 1809 2008–09 Supreme Court of India
Income Tax Act1961 Income Tax 211 2010–11 CIT(Appeals) Kolkata
Income Tax Act1961 Income Tax 1938 2011–12 CIT(Appeals) Kolkata
Income Tax Act1961 Income Tax 485 2012–13 CIT(Appeals) Kolkata
Income Tax Act1961 Income Tax on Fringe benefits 226 2005–06 to 2008–09 Calcutta High Court
Finance Act1994 Service Tax 302 2006–07 to 2010–11 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata
Finance Act1994 Service Tax 973 2011–12 to 2014–15 Principal Commissioner of Service Tax Kolkata
Central Sales Tax Act 1956 Central Sales Tax 211 2010–11 West Bengal Sales Tax Appellate and Revisional Board
Central Sal
es Tax Act 1956 Central Sales Tax 195 2011–12 West Bengal Sales Tax Appellate and Revisional Board
Central Sales Tax Act 1956 Central Sales Tax 56 2012–13 West Bengal Sales Tax Appellate and Revisional Board
Central Sales Tax Act 1956 Central Sales Tax 339 2013–14 Sr. Joint Commissioner of Commercial Tax Kolkata

(viii) Based on our audit procedures and as per the information and explanations givento us by the management we are of the opinion that during the year the Company has notdefaulted in repayment of loans or borrowings to a financial institution bank Governmentor dues to debenture holders. (ix) In our opinion and according to the information andexplanations given to us moneys raised by way of initial public offer or further publicoffer (including debt instruments) and term loans were prima facie applied during the yearfor the purposes for which those were raised. (x) Based upon the audit proceduresperformed for the purpose of reporting the true and fair view of the financial statementsand as per the information and explanations given to us by the management we report thatwe have neither come across any instance of fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the management. (xi) According to the information and explanations givento us managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company.

(xiii) According to the information and explanations given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of the Act where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) As per the information and explanations given to us the Company has not enteredinto any non–cash transactions during the year with directors or persons connectedwith them. (xvi) The Company is required to be registered under Section 45–IA of theReserve Bank of India Act 1934 and the registration has been obtained.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 103523W/W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
9th May 2017 Membership No. 056613

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph (2)f under ‘Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report of even date to the members of theCompany on the standalone financial statements for the year ended 31st March 2017]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub–section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2017 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing specified under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls both issuedby the ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 103523W/W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
9th May 2017 Membership No. 056613