Last updated: 26 Nov, 2020 | 08:45 am
SREI Infrastructure Finance Ltd. (SIFL) has announced that the company and its wholly-owned subsidiary SREI Equipment Finance Ltd.(SEFL) have been undergoing a special audit, conducted by an auditor appointed by Reserve Bank of India.
What does this audit mean?
CARE places SIFL credit rating under watch
CRISIL Downgrades pass-through certificates originated by SREI Equipment Finance
SIFL has been under severe financial stress for the past few years. SIFL posted a 91% decline in profit for the September quarter. The management clearly indicated that the infrastructure sector has been under severe stress and it will take a long time to bring things back on track. There is a lot of uncertainty with regards to the proposed consolidation of assets and the slump sale. Also, Srei Infrastructure Finance holds a 3.34% stake in Lakshmi Vilas Bank, which will get delisted from the exchanges and will be valued at zero.
We recommend that you exit your investments in SREI group.