MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	SREI INFRASTRUCTURE FINANCE LIMITED (w.e.f. 29.05.1992)
Formerly Known As:	SREI INTERNATIONAL LIMITED
Registered Office :	Vishwakarma, 86-C, Topsia Road (South), Kolkata-700046, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.03.1985
Com. Reg. No.:	21-055352
Capital Investment / Paid-up Capital :	Rs.5030.863 Millions
CIN No.: [Company Identification No.]	L29219WB1985PLC055352
TAN No.: [Tax Deduction & Collection Account No.]	CALS11905F
PAN No.: [Permanent Account No.]	AAACS1425L
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Leasing and Hire Purchase of Construction Equipments, Commercial Vehicles and Automobiles in India.
No. of Employees :	2593 (Approximately) (SREI Group)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 100000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track record. Company has strong performance capacity but there appears slight fall in the profitability. However, general financial position of the company appears to be good. Fundamental are healthy and strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	SHORT TERM DEBT INSTRUMENT : CARE A1+
Rating Explanation	Having very strong degree of safety regarding timely payment of financial obligation it carry lowest credit risk.
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Vishwakarma, 86-C, Topsia Road (South), Kolkata – 700046, West Bengal, India.
Tel. No.:	91-33-22850112-15 / 22850124-27 / 22870112 – 15/ 39887734
Fax No.:	91-33-22857542 / 22858501
E-Mail :	calho@srei.com corporate@srei.com secretarial@srei.com
Website :	http://www.srei.com
Corporate Office :	6A Kiran Shankar Roy Road, Kolkata - 700 001, India
Tel No.:	91- 33-22857542 / 8501
Other Office :	Trinity Plaza 84/1A Topsia Road (South) Kolkata - 700 046, India Tel No.: 91-33 22850168-69/ 39873903 Fax No.: 91-33-22850167 Hi - Tech Chambers 84/1B Topsia Road (South), 6th Floor, Kolkata - 700046, India Tel No.: 91-33-39873845/3810 Fax No.: 91-33-39873861
Regional Office :	Located at: Ahmedabad Kolkata Bangalore Nagpur Mumbai Bhubaneswar Chennai New Delhi Hyderabad
International Offices :	Located at: Moscow Saint Petersburg Krasnodar

DIRECTORS

As on 10.08.2012

Name :	Mr. Salil Kumar Gupta
Designation :	Chief Mentor
Address :	538, Jodhpur Park, Kolkata – 700068, West Bengal, India
Date of Birth/Age :	14.08.1928
Date of Appointment :	20.04.1991
DIN No.:	00651223
PAN No.:	ADQPG8287N

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15412WB1982PTC035374	BAKEFRESH BISCUITS PRIVATE LIMITED	Director	03/11/1982	03/11/1982	05/05/2007	Active	NO
2	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Director	20/04/1991	20/04/1991	-	Active	NO
3	L15491WB1977PLC031134	MORAN TEA CO.(INDIA) LTD.	Director	19/11/1992	19/11/1992	-	Active	YES
4	U85110WB2000PTC091699	CORPORATE HEALTH CHECK SERVICES PRIVATE LIMITED	Director	18/04/2000	18/04/2000	-	Active	NO
5	U67190WB2002PLC095455	SAHAJ E-VILLAGE LIMITED	Director	11/02/2003	11/02/2003	06/08/2012	Active	NO
6	U70101WB2006PTC109898	SREI EQUIPMENT FINANCE PRIVATE LIMITED	Director	11/06/2009	12/05/2007	28/07/2010	Active	NO
7	U74210WB1993PTC057457	JAGARAN MICROFIN PRIVATE LIMITED	Director	30/08/2011	25/05/2011	-	Active	NO

Name :	Mr. Hemant Kanoria
Designation :	Chairman and Managing Director
Address :	Kanoria House, 3 Middle Road, Hastings, Kolkata – 700022, West Bengal
Date of Birth/Age :	05.08.1962
Qualification :	B. Com
Date of Appointment :	30.10.1990
DIN No.:	00193015
PAN No.:	AKSPK3708R

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Managing director	01/04/2010	30/10/1990	-	Active	NO
2	U65999WB1994PLC065722	SREI VENTURE CAPITAL LIMITED	Director	31/10/1994	31/10/1994	-	Active	NO
3	U67190WB1998PLC087155	SREI CAPITAL MARKETS LIMITED	Director	19/05/1998	19/05/1998	-	Active	NO
4	U45201WB2001PLC092865	BENGAL SHRISTI INFRASTRUCTURE DEVELOPMENT LIMITED	Director	31/07/2003	31/07/2003	23/02/2012	Active	NO
5	U45200AP2003PLC041893	NAC INFRASTRUCTURE EQUIPMENT LIMITED	Director	17/11/2003	17/11/2003	13/01/2009	Active	NO
6	U85110MH2004PLC146291	ASIAN HEALTHCARE SERVICES LIMITED	Director	13/05/2004	13/05/2004	24/10/2011	Active	YES
7	U70109WB2004PLC100517	BENGAL SREI INFRASTRUCTURE DEVELOPMENT LIMITED	Director	25/11/2004	25/11/2004	26/10/2010	Active	NO
8	U51103DL2005PTC137538	QUIPPO VALUERS AND AUCTIONEERS PRIVATE LIMITED	Director	13/06/2005	13/06/2005	15/12/2010	Active	NO
9	U11120DL2005PLC138226	QUIPPO OIL AND GAS INFRASTRUCTURE LIMITED	Director	20/08/2005	20/08/2005	18/03/2010	Active	NO
10	U45500WB2001PLC144017	QUIPPO INFRASTRUCTURE EQUIPMENT LIMITED	Director	09/03/2006	09/03/2006	22/12/2008	Amalgamated	NO
11	U64203DL2005PLC138225	QUIPPO TELECOM INFRASTRUCTURE LIMITED	Director	11/12/2006	18/05/2006	14/12/2010	Active	NO
12	U70101WB2006PTC109898	SREI EQUIPMENT FINANCE PRIVATE LIMITED	Managing director	02/04/2008	12/05/2007	-	Active	NO
13	U67190WB2002PLC095455	SAHAJ E-VILLAGE LIMITED	Director	11/07/2008	03/03/2008	06/08/2012	Active	NO
14	U70109DL2007PTC168478	QUIPPO ENERGY PRIVATE LIMITED	Director	23/09/2009	22/12/2008	17/01/2012	Active	NO
15	U35203AP2007PLC057400	QUIPPO CONSTRUCTION EQUIPMENT LIMITED	Director	24/09/2009	19/01/2009	27/12/2010	Active	NO
16	U60222WB2009PTC132824	KOLKATA MASS RAPID TRANSIT PRIVATE LIMITED	Director	13/08/2010	04/04/2009	-	Active	NO
17	U85300WB1926GAP005585	INDIAN CHAMBER OF COMMERCE CALCUTTA	Director	30/06/2011	27/06/2009	-	Active	NO
18	U72200DL2004PLC228400	VIOM NETWORKS LIMITED	Director	09/09/2010	18/08/2009	-	Active	NO
19	L40105WB1919PLC003263	DPSC LIMITED	Director	26/06/2010	29/01/2010	-	Active	NO
20	U85100WB2008PTC130971	ADVINIA HEALTH CARE (INDIA) PRIVATE LIMITED	Director	28/09/2010	29/05/2010	05/12/2011	Active	NO
21	L29261WB1998PLC087404	TEXMACO RAIL & ENGINEERING LIMITED	Director	29/08/2012	21/10/2011	-	Active	NO

Name :	Mr. Sunil Kanoria
Designation :	Vice Chairmen
Address :	Kanoria House, 3 Middle Road, Hastings, Kolkata – 700022, West Bengal
Date of Birth/Age :	04.05.1965
Qualification :	B. Com., FCA
Date of Appointment :	05.07.1989
DIN No.:	00421564
PAN No.:	AFTPK7014E

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Director	05/07/1989	05/07/1989	-	Active	NO
2	U45200AP2003PLC041893	NAC INFRASTRUCTURE EQUIPMENT LIMITED	Director	17/05/2008	22/10/2003	28/09/2011	Active	NO
3	U91990MH2004NPL146931	FINANCE INDUSTRY DEVELOPMENT COUNCIL	Director	14/06/2004	14/06/2004	17/02/2012	Active	NO
4	L15421UP1932PLC025141	UPPER GANGES SUGAR AND INDUSTRIES LIMITED	Director	10/08/2004	10/08/2004	-	Active	NO
5	U51103DL2005PTC137538	QUIPPO VALUERS AND AUCTIONEERS PRIVATE LIMITED	Director	13/06/2005	13/06/2005	14/03/2011	Active	NO
6	U64203DL2005PLC138225	QUIPPO TELECOM INFRASTRUCTURE LIMITED	Director	11/12/2006	20/08/2005	18/01/2011	Active	NO
7	U11120DL2005PLC138226	QUIPPO OIL AND GAS INFRASTRUCTURE LIMITED	Director	20/08/2005	20/08/2005	17/01/2012	Active	NO
8	U45500WB2001PLC144017	QUIPPO INFRASTRUCTURE EQUIPMENT LIMITED	Managing director	01/01/2010	01/01/2006	-	Amalgamated	NO
9	U70101WB2006PTC109898	SREI EQUIPMENT FINANCE PRIVATE LIMITED	Managing director	02/04/2008	12/05/2007	-	Active	NO
10	U35203AP2007PLC057400	QUIPPO CONSTRUCTION EQUIPMENT LIMITED	Director	25/06/2008	05/03/2008	17/01/2012	Active	NO
11	U70109DL2007PTC168478	QUIPPO ENERGY PRIVATE LIMITED	Director	23/09/2009	22/12/2008	17/01/2012	Active	NO
12	U72200DL2004PLC228400	VIOM NETWORKS LIMITED	Managing director	18/11/2011	18/08/2009	-	Active	NO
13	L40105WB1919PLC003263	DPSC LIMITED	Director	26/06/2010	05/02/2010	-	Active	NO
14	U74120DL2010PTC200060	SPICE INTERNET SERVICE PROVIDER PRIVATE LIMITED	Additional director	18/03/2010	18/03/2010	21/07/2010	Active	NO
15	U64202DL2007PLC223153	VIOM INFRA NETWORKS (MAHARASHTRA) LIMITED	Director	30/09/2010	21/09/2010	-	Active	NO

Name :	Mr. Saud Ibne Siddique
Designation :	Joint Managing Director
Address :	Flat No.1A, 1^St Floor, Rameshwara Apartment, 19A, Sarat Bose Road, Kolkata – 700020, West Bengal, India
Date of Birth/Age :	02.05.1958
Date of Appointment :	29.10.2007
DIN No.:	01873293
PAN No.:	CSUPS0397A

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Managing director	01/04/2012	29/10/2007	-	Active	NO
2	U67190WB1998PLC087155	SREI CAPITAL MARKETS LIMITED	Director	22/07/2009	08/06/2009	-	Active	NO
3	U65999WB1994PLC065722	SREI VENTURE CAPITAL LIMITED	Director	22/07/2009	08/06/2009	-	Active	NO
4	U67190MH2010PTC209904	VIOLET ARCH CAPITAL ADVISORS PRIVATE LIMITED	Nominee director	06/09/2011	06/09/2011	30/04/2012	Active	NO

Name :	Mr. Srinivasachari Rajagopal
Designation :	Director
Address :	Varenya 1043, 10^th Main Road, Judicial Officers Layout, GKVK Post, Bangalore – 560065, Karnataka, India
Date of Birth/Age :	10.03.1940
Qualification :	B. Com., M.A. LLB, CAIIB, Diploma in Industrial Finance
Date of Appointment :	25.01.2003
DIN No.:	00022609
PAN No.:	ABLPR5509F

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1996PLC021262	GMR ENERGY LIMITED	Director	07/07/2008	31/07/2002	-	Active	NO
2	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Director	25/01/2003	25/01/2003	-	Active	NO
3	U45203KA2001PTC049328	GMR TUNI-ANAKAPALLI EXPRESSWAYS PRIVATE LIMITED	Director	31/03/2003	31/03/2003	-	Active	NO
4	U45203KA2001PTC049329	GMR TAMBARAM TINDIVANAM EXPRESSWAYS PRIVATE LIMITED	Director	31/03/2003	31/03/2003	-	Active	NO
5	U65922TN1995PLC031681	NATIONAL TRUST HOUSING FINANCE LIMITED	Director	11/04/2003	11/04/2003	-	Active	NO
6	U65999WB1994PLC065722	SREI VENTURE CAPITAL LIMITED	Director	13/06/2005	13/06/2005	-	Active	NO
7	U18101TZ2005PLC012295	S.P.APPARELS LIMITED	Director	30/09/2006	30/01/2006	15/03/2011	Active	NO
8	L28990MH1996PLC097945	VARUN INDUSTRIES LIMITED	Director	16/07/2007	05/12/2006	28/03/2012	Active	NO
9	L30006TN1995PLC031651	ZYLOG SYSTEMS LIMITED	Director	21/06/2007	28/01/2007	07/12/2012	Active	NO
10	U72200KA2003PTC032027	WISDOMLEAF TECHNOLOGIES PRIVATE LIMITED	Director	21/07/2008	14/07/2007	-	Active	NO
11	U40102MH2007PLC172552	USHER ECO POWER LIMITED	Director	27/06/2008	15/05/2008	31/10/2009	Active	NO
12	U40101KA2007PLC044809	GMR KAMALANGA ENERGY LIMITED	Director	24/08/2009	01/09/2008	-	Active	NO
13	U72200TN2005PLC058451	ZYLOG SYSTEMS (INDIA) LIMITED.	Director	23/09/2009	19/01/2009	07/12/2012	Active	NO
14	U40108KA2008PLC047974	GMR CHHATTISGARH ENERGY LIMITED	Director	13/08/2010	02/12/2009	-	Active	NO
15	U72900KA2009PTC051942	CAREERCUBICLE TECHNOLOGIES PRIVATE LIMITED	Director	23/12/2009	23/12/2009	-	Active	NO
16	U51909TN1994PLC028470	VIVEK LIMITED	Director	30/10/2010	09/03/2010	-	Active	NO
17	U45201KA2009PTC050109	GMR HYDERABAD VIJAYAWADA EXPRESSWAYS PRIVATE LIMITED	Director	11/08/2010	18/03/2010	-	Active	NO
18	U45200DL2011PLC227902	GMR KISHANGARH UDAIPUR AHMEDABAD EXPRESSWAYS LIMITED	Director	21/08/2012	17/01/2012	-	Active	NO
19	L45203KA1996PLC034805	GMR INFRASTRUCTURE LIMITED	Additional director	12/11/2012	12/11/2012	-	Active	NO

Name :	Mr. Shyamalendu Chatterjee
Designation :	Director
Address :	South City Apartments, 17K, Tower 1, SVC – 2, 375 Prince Anwar Shah Road, Kolkata – 700068, West Bengal, India
Date of Birth/Age :	24.12.1946
Qualification :	BA
Date of Appointment :	29.04.2009
DIN No.:	00048249
PAN No.:	AAIPC6471F

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L65110GJ1993PLC020769	AXIS BANK LIMITED	Whole-time director	17/01/2005	17/01/2005	31/12/2006	Active	NO
2	U51900MH2005PLC157853	AXIS CAPITAL LIMITED	Director	06/12/2005	06/12/2005	31/12/2006	Active	NO
3	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Director	01/04/2012	16/05/2007	-	Active	NO
4	U72200AP1999PTC033128	CYBERABAD TRUSTEE COMPANY PRIVATE LIMITED	Nominee director	23/08/2008	23/08/2008	07/03/2009	Active	NO
5	U72200AP1998PLC029282	HYDERABAD INFORMATION TECHNOLOGY VENTURE ENTERPRISES LIMITED	Nominee director	23/08/2008	23/08/2008	07/03/2009	Active	NO
6	U67190WB2002PLC095455	SAHAJ E-VILLAGE LIMITED	Director	29/07/2011	27/10/2010	-	Active	NO

Name :	Mr. Satish Chandra Jha
Designation :	Director
Address :	G-61, Post Palam Vihar, Gurgaon – 122017, Haryana, India
Date of Birth/Age :	01.04.1934
Date of Appointment :	28.01.2010
DIN No.:	00247427
PAN No.:	AAJPJ2177Q

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L65993MH1920PLC000791	WALCHAND PEOPLEFIRST LIMITED	Director	29/06/2001	29/06/2001	-	Active	NO
2	U65999WB1994PLC065722	SREI VENTURE CAPITAL LIMITED	Director	22/11/2002	22/11/2002	-	Active	NO
3	U45500WB2001PLC144017	QUIPPO INFRASTRUCTURE EQUIPMENT LIMITED	Director	28/12/2007	15/02/2007	-	Amalgamated	NO
4	L29219WB1985PLC055352	SREI INFRASTRUCTURE FINANCE LIMITED	Director	09/08/2010	28/01/2010	-	Active	NO

Name :	Mr. Sujitendra Krishna Deb
Designation :	Director
Address :	43-B, Jatindra Mohan Avenue, Kolkata – 700005, West Bengal, India
Date of Birth/Age :	12.10.1947
Date of Appointment :	19.05.2011
DIN No.:	03524764
PAN No.:	ADQPD9191G

KEY EXECUTIVES

Name :	Mr. Sandeep Lakhotia
Designation :	Company Secretary
Address :	Sunflower Garden Tower III, Flat 8C, Topsia Road (S), Kolkata – 700046, West Bengal, India
Date of Birth/Age :	11.03.1975
Date of Appointment :	01.02.2005
PAN No.:	AAXPL4123C
Name :	Mr. Sanjeev Sancheti
Designation :	Chief Financial Officer
Qualification :	B. Com, ACA
Audit Committee
Name :	Mr. Salil K. Gupta
Designation :	Chairman
Name :	Mr. Vasantrai H. Pandya
Designation :	Member
Name :	Mr. S. Rajagopal
Designation :	Member
Name :	Mr. Sujitendra Krishna Deb
Designation :	Member
Name :	Mr. Shyamalendu Chatterjee
Designation :	Member
Name :	Mr. Sunil Kanoria
Designation :	Member
Name :	Mr. Sandeep Lakhotia
Designation :	Secretary
Compensation Committee
Name :	Mr. Salil K. Gupta
Designation :	Chairman
Name :	Mr. Shyamalendu Chatterjee
Designation :	Member
Name :	Mr. Sujitendra Krishna Deb
Designation :	Member
Name :	Mr. Sunil Kanoria
Designation :	Member
Name :	Mr. Sandeep Lakhotia
Designation :	Secretary
Committee of Directors
Name :	Mr. Hemant Kanoria
Designation :	Chairman
Name :	Mr. Sunil Kanoria
Designation :	Member
Name :	Mr. Saud Ibne Siddique
Designation :	Member
Name :	Mr. Sandeep Lakhotia
Designation :	Secretary
Share Transfer and Investors Relations Committee
Name :	Mr. Salil K. Gupta
Designation :	Chairman
Name :	Mr. Hemant Kanoria
Designation :	Member
Name :	Mr. Sunil Kanoria
Designation :	Member
Name :	Mr. Sandeep Lakhotia
Designation :	Secretary
Asset Liability Management Committee
Name :	Mr. Sunil Kanoria
Designation :	Chairman
Name :	Mr. Saud Ibne Siddique
Designation :	Member
Name :	Mr. Shyamalendu Chatterjee
Designation :	Member
Name :	Mr. Sanjeev Sancheti
Designation :	Member
Name :	Mr. Sandeep Lakhotia
Designation :	Member
Name :	Mr. S. B. Tiwari
Designation :	Secretary
Central Credit and Investment Committee
Name :	Mr. Hemant Kanoria
Designation :	Chairman
Name :	Mr. Sunil Kanoria
Designation :	Member
Name :	Mr. Saud Ibne Siddique
Designation :	Member
Name :	Mr. Ganesh P. Bagree
Designation :	Secretary
Risk Committee
Name :	Mr. Shyamalendu Chatterjee
Designation :	Chairman
Name :	Mr. Saud Ibne Siddique
Designation :	Member
Name :	Mr. Sujitendra Krishna Deb
Designation :	Member
Name :	Ms. Ashwini Kumar
Designation :	Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2224446	0.44
Bodies Corporate	92141830	18.32
Sub Total	94366276	18.76
(2) Foreign
Bodies Corporate	150297688	29.88
Sub Total	150297688	29.88
Total shareholding of Promoter and Promoter Group (A)	244663964	48.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	29913	0.01
Financial Institutions / Banks	109686	0.02
Foreign Institutional Investors	54276040	10.79
Sub Total	54415639	10.82
(2) Non-Institutions
Bodies Corporate	26430778	5.25
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	31361648	6.23
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	33899016	6.74
Any Others (Specify)	112293688	22.32
Non Resident Indians	2295663	0.46
Trusts	106598675	21.19
Clearing Members	1663633	0.33
Foreign Nationals	1735717	0.35
Sub Total	203985130	40.55
Total Public shareholding (B)	258400769	51.37
Total (A)+(B)	503064733	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0.00	0.00
(1) Promoter and Promoter Group	0.00	0.00
(2) Public	21600	0.00
Sub Total	21600	0.00
Total (A)+(B)+(C)	503086333	0.00

BUSINESS DETAILS

Line of Business :

Leasing and Hire Purchase of Construction Equipments, Commercial Vehicles and Automobiles in India.

GENERAL INFORMATION

No. of Employees :

2593 (Approximately) (SREI Group)

Bankers :

Axis Bank Limited

United Bank of India, Corporate Finance Branch, 11, Hemant Basu Sarani, Kolkata – 700001, West Bengal, Indiassss

Facilities :

Secured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Bonds / Debentures:
Long-Term Infrastructure Bonds	248.900	0.000
Non-Convertible Debentures	6530.000	170.000
Term Loans
From Banks:
- Rupee Loans	10599.800	6454.500
- Foreign Currency Loans	2544.200	1114.700
From Financial Institutions:
- Foreign Currency Loans	5533.600	5317.300
Deposits
Public Deposits	0.000	1.600
Other Loans
Buyer's Credit from Banks - Foreign Currency Loans	0.000	108.100
SHORT-TERM BORROWINGS
Loans repayable on demand
Working Capital Facilities from banks (Rupee Loan)	14900.000	14300.000
Other Loans
Working Capital Facilities from banks (Rupee Loan)	29364.600	8200.600
Short-Term Loans from Banks
- Rupee Loans	4000.000	1500.000
- Foreign Currency Loans	508.700	0.000
Buyer’s credit from Banks - Foreign Currency Loan	198.400	0.000
Deposits
Public Deposits	1.600	0.100
Total	74429.800	37166.900
Unsecured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Bonds / Debentures:
Non-Convertible Debentures	0.000	0.000
Subordinated bonds/debentures (Tier II Capital)	6500.000	3052.700
Term Loans
From Financial Institutions	0.000	0.000
Deposits
Inter-Corporate Deposits	8.900	0.000
SHORT-TERM BORROWINGS
Deposits
Inter Corporate Deposits
- From Related Parties	109.000	177.500
- From Others	1506.800	624.400
Other Loans
Non-Convertible Debentures	0.000	350.000
Rupee Loan from Banks	1500.000	0.000
Commercial Papers
- From Banks	0.000	96.500
- From Others	6575.800	2400.800
Total	16200.500	6701.900

Notes:

LONG-TERM BORROWINGS

1. Long-Term Infrastructure Bonds - Secured, Redeemable, Non-convertible Debentures

During the year, the Company has raised ? 2,489 lakh (Previous year: ? Nil) through public issue of Long-Term Infrastructure Bonds in the nature of Secured, Redeemable Non-Convertible Debentures, eligible for deduction under section 80 CCF of the Income-Tax Act, 1961. Fund raised has been utilised for the purposes of infrastructure lending as per the terms of the issue.

Maturity profile and rate of interest of these Bonds are as set out below:

(Rs. In Millions)

Rate of Interest	Maturity Profile Rate of Interest		Total
	2016-17	2012-16
8.90%	129.100	--	129.100
9.15%	119.800	--	119.800
Total	248.900	--	248.900

Bonds with interest rate of 8.90% have an overall tenure of 10 years and those with 9.15%, 15 years. Buyback option is available for all bonds at the end of 5 years i.e. on 22.03.2017. Bonds are secured by exclusive charge on specific receivables of the Company and pari-passu mortgage/charge on immovable property.

2. Non-Convertible Debentures

(Rs. In Millions)

Rate of Interest	Maturity Profile*						Total
	2021-22	2016-17	2015-16	2014-15	2013-14	2012-13
9.75% 1	-	-	-	-	-	170.000	170.000
10.80% 2	-	666.800	666.600	666.600	-	-	2000.000
10.90% 2	-	-	-	-	500.000	-	5,00.000
11.00% 2	-	-	-	-	30.000	-	30.000
11.40% 2	-	-	-	670.000	-	-	670.000
11.75% 2	-	2930.000	-	-	-	-	2930.000
11.90% 2	4000	-	-	-	-	-	400.000
Total	400.000	3596.800	666.600	1336.600	530.000	170.000	6700.000

* Includes current maturities

1 Secured against Receivables of the Company.

2 Secured against Receivables of the Company and mortgage of immovable property.

All the above debentures are redeemable at par.

3. Term Loans

(Rs. In Millions)

Rate of Interest	Maturity Profile*				Total
	Beyond 5 years	3-5 years 1	1-3 years	0-1 years
From Banks - Rupee Loans1	25.900	3342.500	7231.400	5692.600	16292.400
From Banks - Foreign Currency Loans	1373.900	1094.000	76.300	1271.800	3816.000
From Financial Institutions - Foreign Currency Loans2	1173.700	2006.600	2353.300	532.500	6066.100
Total	2573.500	6443.100	9661.000	7496.900	26174.500

* Includes current maturities

The above Term Loans are secured by charge on specific assets covered by loan / lease agreements with customers and / or receivables arising there from.

1 Includes Rs.211.100 Millions (Previous year Rs.237.200 Millions) guaranteed by subsidiary company.

2 Includes loans of Rs.1433.300 Millions (Previous year Rs.1371.300 Millions) guaranteed by Export Import Bank of the United States.

4. Public Deposits

In order to qualify for registration as an ‘Infrastructure Finance Company’, the Company decided not to accept or renew public deposits w.e.f. 20th April, 2010. The amount of public deposits outstanding as on 19th April, 2010 (including matured and unclaimed deposits) along with accrued and future interest thereof is kept in the form of a Fixed Deposit, under lien, with Axis Bank Limited, a scheduled commercial bank, for the purpose of making payment to the depositors. The outstanding balance of the Fixed Deposit as at 31st March, 2012 is Rs.8.800 Millions (Rs.25.000 Millions as at 31st March, 2011).

5. Buyer’s credit from Banks (Foreign Currency Loan)

These foreign currency loans from banks are repayable by bullet payment and have tenures ranging from 1-3 years. These loans are secured by import documents covering title to capital goods and extension of pari passu charge towards working capital facilities.

6. Unsecured Subordinated bonds / debentures (Tier II Capital)

During the year ended 31st March, 2012, the Company raised subordinated debt qualifying for Tier II capital amounting to Rs.3500.000 Millions (31st March, 2011: Rs.500.000 Millions). The following table sets forth the details of the outstanding as at 31st March, 2012:

(Rs. In Millions)

Rate of Interest	Maturity Profile*						Total
	2021 - 22	2020 – 21	2019 - 20	2017 – 18	2016 - 17	2012 - 13
10.20%	-	-	2000.000	--	-	-	2000.000
10.50%	-	500.000	-	--	-	52.700*	552.700
11.40%	1000.000	-	-	--	-	-	1000.000
11.75%	-	-	-	100.000	8.500	-	108.500
11.85%	-	-	-	-	200.000	-	200.000
11.90%	2191.500	-	-	-	-	-	2191.500
12.00%	-	-	-	-	500.000	-	500.000
Total	3191.500	500.000	2000.000	100.000	708.500	52.700	6552.700

*The interest rate is floating and is computed based on average yield to maturity (YTM) calculated from the balance maturity of 12 year Government of India (GOI) security paper for the remaining tenure of the Bonds.

*Each bond is having an overall tenure of 12 years, reckoned from the date of allotment. The bonds shall be redeemed at a premium of 20% of the original face value.

SHORT-TERM BORROWINGS

1. Working capital facilities from banks, including working capital demand loans earmarked against such facilities, are secured by hypothecation of underlying assets (short-term as well as long-term loan assets) covered by hypothecation loan of agreements and operating lease agreements with customers and receivables arising therefrom, ranking pari passu (excluding assets specifically charged to others). As per the prevalent practice, these facilities are renewed on a year-to-year basis and therefore, are revolving in nature.

2. Short-Term Loans from banks are secured by charge on specific assets covered by loan/ facility agreements with customers and / or receivables arising therefrom.

3. Face value of Commercial Paper outstanding as at 31st March, 2012 is Rs.6785.000 Millions (as at 31st March, 2011 Rs.2612.000 Millions). Face value of maximum outstanding at any time during the year ended 31st March, 2012 was Rs.20785.000 Millions (Previous year Rs.6350.000 Millions). Face value of Commercial Paper repayable within one year is Rs.6785.000 Millions (Previous year Rs.2612.000 Millions).

Banking Relations :	--
Auditors :
Name :	Messrs Haribhakti and Company Chartered Accountants
Joint Venture :	· Srei Equipment Finance Private Limited
Trusts :	· Srei Mutual Fund Trust · Srei Growth Trust
Related parties :	· Viom Networks Limited (w.e.f. 18.11.2011)
Subsidiaries and Step-down Subsidiaries:	· Srei Capital Markets Limited · Srei Venture Capital Limited · Srei Infrastructure Advisors Limited · Global Investment Trust Limited · Controlla Electrotech Private Limited · Srei Mutual Fund Asset Management Private Limited · Srei Mutual Fund Trust Private Limited · IIS International Infrastructure Services GmbH, Germany · Srei Forex Limited · Srei Insurance Broking Private Limited (Subsidiary w.e.f. 31.03.2012) · Srei Sahaj e-Village Limited · Bengal Srei Infrastructure Development Limited (Subsidiary of Srei Infrastructure Advisors Limited) · Quippo Infocomm Limited (ceased to be a subsidiary of Srei Infrastructure Advisors Limited w.e.f 16.07.2011) · Hyderabad Information Technology Venture Enterprises Limited (Subsidiary of Srei Venture Capital Limited) · Cyberabad Trustee Company Pvt. Limited (Subsidiary of Srei Venture Capital Limited) · ZAO Srei Leasing, Russia (Subsidiary of IIS International Infrastructure Services GmbH, Germany) · Srei Advisors Pte Limited, Singapore (Subsidiary of IIS International Infrastructure Services GmbH, Germany) · Quippo Oil and Gas Infrastructure Limited · Quippo Energy Private Limited · Quippo Construction Equipment Limited · Mumbai Futuristic Economic Zone Private Limited · Quippo Prakash Marine Holdings Pte. Limited (Subsidiary of Quippo Oil and Gas Infrastructure Limited) · Quippo Prakash Pte. Limited (Subsidiary of Quippo Prakash Marine Holdings Pte. Limited) · Quippo Holding Cooperatief U.A. (Subsidiary of Quippo Oil and Gas Infrastructure Limited, liquidated on 13.02.2012) · Quippo International B.V. (Subsidiary of Quippo Holding Cooperatief U.A., liquidated on 13.02.2012) · Quippo Energy Middle East Limited (Subsidiary of Quippo Energy Private Limited) · Quippo Energy Yemen Limited (Subsidiary of Quippo Energy Private Limited) · Kasco Steel Limited(ceased to be a subsidiary of Quippo Construction Equipment Limited w.e.f. 22.09.2011) · Quippo Mara Infrastructure Limited (Subsidiary of Quippo International B.V., Ceased to be Sub-subsidiary w.e.f. 13.02.2012 on account of liquidation of its holding company) · Quippo Mauritius Private Limited (Subsidiary of Quippo Energy Private Limited w.e.f. 05.03.2012) · Quippo Energy Nigeria Private Limited (Subsidiary of Quippo Mauritius Private Limited w.e.f. 22.03.2012)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
710,000,000	Equity Shares	Rs.10/- each	Rs.7100.000 Millions
10,000,000	Preferences Shares	Rs.100/- each	Rs.1000.000 Millions
	Total		Rs.8100.000 Millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
503,559,160	Equity Shares	Rs.10/- each	Rs.5035.600 Millions

Paid-up Capital:

No. of Shares	Type	Value	Amount
503,086,333 *	Equity Shares	Rs.10/- each	Rs.5030.900 Millions
	Add: Forfeited Shares (472,827 Equity Shares)		Rs.1.500 Millions
	Total		Rs. 5032.400 Millions
* Includes 21,600 shares represented by 5,400 Global Depository Receipts (GDRs) issued vide Prospectus dated 18.04.2005.

Note:

1. Reconciliation of Equity Shares outstanding

The reconciliation of the number of equity shares outstanding and the corresponding amount thereof, as at the Balance Sheet date is set out below:

Equity Shares	31st March, 2012
	No. of Shares	Rs. In Millions
At the beginning of the financial year	503086333	5030.900
Add: Issued as fully paid-up bonus shares by capitalisation of Securities Premium	--	--
Add: Allotment pursuant to Scheme of Amalgamation, without payment being received in Cash	--	--
At the end of the financial year	503086333	5030.900

2. Rights, preferences and restrictions in respect of each class of Shares

The Company's authorised capital consists of two classes of shares, referred to as equity shares and preference shares, having par value of Rs.10/- and Rs.100/- each respectively. Each holder of equity shares is entitled to one vote per share. The preference shareholders have a preferential right over equity share holders, in respect of repayment of capital and payment of dividend. However, no such preference shares have been issued by the Company during the years ended 31st March, 2011 and 31st March, 2012.

The Company declares and pays dividend in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Dividend per equity share proposed for the current year is Rs.0.50 (Previous year: Rs.0.75).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Shares allotted as fully paid-up without payment being received in cash / by way of bonus shares (during 5 years preceding 31st March, 2012)

Pursuant to amalgamation of Quippo Infrastructure Equipment Limited (Transferor Company) into and with the Company, approved by the Equity Shareholders of the Company and sanctioned by the Hon'ble High Court of Calcutta on 18th January, 2011, the Company issued and allotted 92,915,839 equity shares of Rs.10/- par value, as fully paid up bonus shares, to the pre-amalgamation equity shareholders of the Company on 5th March, 2011.

Further, the Company issued and allotted 294,025,696 equity shares of Rs.10/- par value, as fully paid-up, towards consideration for the aforesaid amalgamation, to the shareholders of the Transferor Company on 5th March, 2011. This includes 48,600,000 equity shares allotted to Srei Growth Trust, a Trust settled by the Company on 4th March, 2011, to receive equity shares of the Company in exchange of the Company's shareholding in the Transferor Company. The beneficial interest in the Trust amounting to Rs.185.150 Millions, representing the cost of shares of the Transferor Company, is shown under 'Non-Current Investments' in the Balance Sheet.

4. Shareholders holding more than 5% equity shares each, are set out below:

Name of the Shareholders	31st March, 2012
	No. of Shares	% of holding
Deigratia International Pte Limited	147937030	29.41
Opulent Venture Capital Trust	57974595	11.52
Srei Growth Trust*	48600000	9.66
Adisri Investment Private Limited	38992840	7.75
Adhyatma Commercial Private Limited	34705703	6.90
Fidelity Investment Trust Fidelity Series Emerging Markets Fund	31414121	6.24

* Held in the name of Trustees

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5032.400	5032.400	1162.900
2] Equity Warrant Issued and Subscribed		0.000	0.000	0.000
3] Reserves & Surplus		20787.700	20498.900	6738.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25820.100	25531.300	7901.000
LOAN FUNDS
1] Secured Loans		74429.800	37166.900	28407.100
2] Unsecured Loans		16200.500	6701.900	7025.600
TOTAL BORROWING		90630.300	43868.800	35432.700
DEFERRED TAX LIABILITIES		798.800	679.000	344.000
TOTAL		117249.200	70079.100	43677.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4359.300	3925.600	831.100
Capital work-in-progress		627.800	91.100	0.000
INVESTMENT		26441.300	25055.100	7073.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
Other Non-Current Assets		636.500	838.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	335.500	464.100	36.500
	Cash & Bank Balances	1493.600	226.500	525.500
	Other Current Assets	61255.000	23862.900	9.500
	Loans & Advances	31883.700	26114.500	35972.200
Total Current Assets		94967.800	50668.000	36543.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.600	25.700	1.800
	Current Liabilities	9088.100	9844.700	561.000
	Provisions	668.800	628.300	207.600
Total Current Liabilities		9783.500	10498.700	770.400
Net Current Assets		85184.300	40169.300	35773.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		117249.200	70079.100	43677.700

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		11767.800	7457.000	4699.700
		Other Income		39.100	5.400	1.600
		TOTAL (A)		11806.900	7462.400	4701.300
Less	EXPENSES
		Employee Benefit Expenses		417.600	302.200	196.800
		Administrative and Other Expenses		450.100	387.800	396.300
		Bad Debts / Advances written off		5.000	0.100	0.000
		Provision for Bad & Doubtful Debts		3.700	0.000	28.900
		Provision for Non-Performing Assets		110.000	0.000	0.000
		Contingent Provisions against Standard Assets		98.600	119.600	0.000
		TOTAL (B)		1085.000	809.700	630.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			10721.900	6652.700	4070.500
Less	FINANCIAL EXPENSES (D)			9480.000	4350.500	2487.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1241.900	2302.200	1582.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)			154.000	180.800	101.400
	PROFIT BEFORE TAX (E-F) (G)			1087.900	2121.400	1481.300
Less	TAX (H)			508.300	778.400	366.400
	PROFIT AFTER TAX (G-I) (I)			579.600	1343.000	1114.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			2379.100	1967.900	1268.500
Less	APPROPRIATIONS
			Special Reserve (as per reserve bank of India guidelines)	NA	931.800	228.000
			Debt redemption reserve			(5.000)
			General reserve			30.000
			Proposed dividend			139.400
			Corporate dividend tax on proposed dividend			23.100
	BALANCE CARRIED TO THE B/S			NA	2379.100	1967.900
	IMPORTS
			Operating Lease Assets	125.400	53.500	NA
	TOTAL IMPORTS			125.400	53.500	NA
	EARNINGS IN FOREIGN CURRENCY
			Fee Based Income	1.400	14.200	NA
			Income from Loans	10.300	9.500
			Other Income (conference participation fee received)	0.000	0.100	NA
	TOTAL EARNINGS			11.700	23.800	NA
	Earnings Per Share (Rs.)			1.15	5.80	9.60

QUARTERLY RESULTS

Particulars	30.06.2012 1st Quarter	30.09.2012 2nd Quarter
Net Sales	4092.000	4221.400
Total Expenditure	245.100	289.400
PBIDT (Excl OI)	3846.900	3932.000
Other Income	1.700	24.100
Operating Profit	3848.600	3956.100
Interest	3658.400	3102.100
Exceptional Items	0.000	0.000
PBDT	190.200	854.000
Depreciation	46.300	157.300
Profit Before Tax	143.900	696.700
Tax	48.500	205.300
Provisions and contingencies	0.000	0.000
Profit After Tax	95.400	491.400
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	95.400	491.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.91	18.00	23.71
Net Profit Margin (PBT/Sales)	(%)	9.24	28.45	31.51
Return on Total Assets (PBT/Total Assets}	(%)	1.10	3.89	3.96
Return on Investment (ROI) (PBT/Networth)		0.04	0.08	0.19
Debt Equity Ratio (Total Liability/Networth)		3.89	2.13	4.62
Current Ratio (Current Asset/Current Liability)		9.71	4.83	47.43

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONAL REVIEW

The Company is one of the leading private sector infrastructure financing institutions in India. Some of the key highlights of the Company’s performance during the year under review are:

· The gross profit (before depreciation/ amortisation, bad debts, provision and tax) is Rs.1459.200 Millions as against Rs.2421.900 Millions in the last year.

· Profit before taxation is Rs.1087.900 Millions as against Rs.2121.400 Millions in the last year.

· Net profit after taxation is Rs.579.600 Millions as against Rs.1343.000 Millions in the last year.

· The total assets under management of the Srei Group is Rs.307643.500 Millions as against Rs.205052.400 Millions in the last year.

The Consolidated Financial Statements have been prepared by the Company in accordance with the requirements of the accounting standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006. The audited Consolidated Financial Statements together with Auditors Report thereon forms part of the Annual Report.

The capital adequacy ratio (CAR) of the Company stood at 20.17 per cent as on March 31, 2012, well above the regulatory minimum level of 15 per cent prescribed by the Reserve Bank of India for systemically important nondeposit taking NBFCs (NBFCs-ND-SI). Of this, the Tier I CAR was 14.59 per cent.

The Company has complied with all the norms prescribed by the Reserve Bank of India (RBI) including the Fair practices, Anti money laundering and Know the customer (KYC) guidelines and also all the mandatory accounting standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006. It has adopted a sound and forward looking accounting policy of providing for non performing assets in terms of the management’s best estimates as well as the guidelines laid down by the Foreign Financial Institutions, which are more stringent than the guidelines of the RBI.

AMALGAMATION OF QUIPPO INFRASTRUCTURE EQUIPMENT LIMITED INTO AND WITH THE COMPANY

The Scheme of Amalgamation of Quippo Infrastructure Equipment Limited (Quippo) into and with the Company was approved by the Hon’ble High Court at Calcutta vide its Order made on January 18, 2011. The Scheme has become effective w.e.f. March 04, 2011 after filing of certified copy of the Order with the Registrar of Companies, West Bengal at Kolkata. Consequently, all the assets and liabilities and the entire business of Quippo stand transferred to and vested in the Company, as a going concern, with effect from the Appointed Date i.e. April 01, 2010.

During the year under review, an application for dissolution without winding up of Quippo was filed before the Hon’ble High Court at Calcutta which approved the same vide its Order dated November 22, 2011. The said dissolution has become effective w.e.f. December 21, 2011 after filing of certified copy of the Order with the Registrar of Companies, West Bengal at Kolkata.

ECONOMIC REVIEW

Global Outlook

The International Monetary Fund (IMF) predicts that global GDP growth will be 3.5 per cent in 2012 and is likely to improve to 4.1 per cent in 2013. The developed economies will grow the slowest vis-à-vis Emerging Market Economies (EMEs) and developing nations.

Amongst the developed nations, the Eurozone will fare the worst. Sovereign debt problem in Europe had been simmering for quite a while, but last autumn the European crisis became acute. Strong policy measures were taken and to alleviate immediate pressure on the financial markets in the Eurozone, the European Central Bank had to inject liquidity of more than € 1 trillion through two long-term refinancing operations. Also, the European Union adopted a tough fiscal pact. The proposed fiscal correction, tightening of credit conditions and persistently high unemployment would limit the growth prospects in the Eurozone in the short to medium term. While economies like Germany and France will have very low but positive growth in 2012, other debt-ridden economies like Spain and Italy will register negative growth thereby dragging down growth of the entire region. As per IMF projections, euro area is likely to grow at minus 0.3 per cent in 2012 and 0.9 per cent in 2013.

The US economy, on the other hand, is showing signs of a gradual recovery from the 2008 crisis with consumer spending picking up and declining unemployment. However, with hardly any pick-up in industrial growth and mixed signals from housing data, there are still some lingering concerns over the sustainability of recovery in the US. Federal Reserve has not ruled out the possibility of further fiscal stimulus through a third round of quantitative easing (QE3). IMF projects a 2.1 percent growth in the US in 2012 and 2.4 per cent in 2013.

The EMEs and developing nations encounter challenges mostly external in nature. Low demand from developed economies leads to lower exports from EMEs and developing nations. The liquidity injection in the US after the 2008 crisis had fuelled commodity prices across the world driving up inflation in EMEs and developing nations. In addition, these nations are exposed to volatile capital flows leading to sharp changes in their exchange rates. With demand in developed nations not likely to pick up anytime soon and with a fresh round of liquidity injection (this time in Europe), the EMEs and developing nations are likely to remain exposed to the abovementioned challenges. Since last year, many of them had already resorted to monetary tightening, capital controls and exchange rate intervention in order to curb inflationary trends and limit the adverse impact of excess capital inflows on their economies. The impact of the policies in these economies has been varied. While inflation has started moderating in Brazil and Russia, China still faces problems of overheating and trying for a soft-landing. Policy making in these nations is likely to be tested for one more year. As per IMF, in 2012 China is likely to grow at 8.2 per cent, Russia at 4 per cent and Brazil at 3 per cent.

International crude oil prices have been rising since January 2012 fuelled by geo-political tensions and abundant global liquidity. Any disruption in supply can lead to a sharp hike in oil price and this will have a cascading impact across industries and make inflation management difficult, especially in EMEs where demand is still buoyant.

Indian Scenario

The year under review was a particularly difficult year for doing business in India. Wholesale Price Index (WPI) inflation remained above 9 per cent from April to November, 2011. To rein in inflation, RBI resorted to raising the interest rate. After raising repo rate by 150 basis points in FY11, RBI increased it by another 125 basis points in FY12. While inflation has started moderating since December, 2011, it is still around 7 per cent mark which is way above RBI’s comfort level. The higher interest rate regime, however, slowed down the economy and GDP growth averaged 6.9 per cent in the first three quarters of FY12. The Index of Industrial Production (IIP) figure reflects how the high interest rate has affected economic activity. IIP registered a growth of only 3.5 per cent between April - February FY12 vis-à-vis 8.1 per cent during the corresponding figure in FY11. With capital goods and intermediate goods registering negative growths during this phase, it is quite likely that GDP growth in FY12 ill be less than the forecast of 6.9 per cent. The slowdown in growth has also been mirrored in the deceleration of non-food credit growth.

India’s infrastructure deficit and the resultant supply bottlenecks have played a role in fuelling inflation. However, their economy is saddled with the twin problems of a high and sustained fiscal deficit and a growing current account deficit (CAD), and this limits government’s ability to boost demand through pump-priming the economy. CAD for FY12 is expected to be at a record high of 3.5 to 4 per cent of GDP. India’s CAD has usually been bridged with capital account inflows. However, overall capital inflows have declined sharply in April – December FY12 with portfolio flows far lower vis à-vis previous year. The consequent drawdown of forex reserves worth USD 7.1 billion during April – December FY12 also sharply depreciated the rupee. Companies who accessed foreign funding suddenly found themselves exposed to foreign exchange risk.

In addition, if they factor in the uncertainty that has been created amongst investors and potential investors from the Union Budget announcements on General Anti Avoidance Rules (GAAR) and retrospective taxation, further capital flight from India is very much a possibility if Government does not quickly take steps to allay investor concerns. Thus, the rupee is likely to remain under pressure going forward.

To ease liquidity situation and to improve the investment climate, RBI cut the Cash Reserve Ratio (CRR) by 125 basis points from January 2012 onwards and followed it up with a 50 basis point cut in repo and reverse repo rates each in April 2012. The cut in repo rate comes after a gap of 3 years. It is easy to pull a string, pushing it is difficult. Thus, while raising policy rates did ultimately lead to moderation in inflation by curbing investment, it remains to be seen how long it takes for the repo rate cut to trigger fresh investments.

Another concern area is the frontloading of Government’s borrowing programme. It envisages a borrowing of USD 75 billion in the first half of FY13. Even if RBI cuts policy rates, lack of liquidity in the market will ensure that end interest rates remain high. Thus, government borrowing can crowd out private investment.

A recent CRISIL report shows that nonperforming assets (NPAs) are on the rise with default rates at a ten year high. Tight liquidity scenario and elevated interest rates imply that banking system’s capability to lend will be tested in FY13.

Rating agency Standard and Poor’s has downgraded India’s outlook from stable to negative. This is likely to push up borrowing cost from overseas markets. To sum it up, FY13 is likely to be an extremely challenging year for India’s policy makers.

NBFIs IN INDIA

The year under review witnessed RBI issuing guidelines to allow banks and non banking finance companies (NBFCs) to sponsor Infrastructure Debt Funds (IDFs). The IDFs can be set as Mutual Funds (IDF-MFs) or as NBFCs (IDF-NBFCs) which would be regulated by Securities and Exchange Board of India (SEBI) and RBI respectively. All NBFCs, including Infrastructure Finance Companies (IFCs) registered with RBI, may sponsor IDF-MFs. However, only IFCs are eligible to sponsor IDF-NBFCs. Sponsor IFCs are to contribute minimum 30 per cent and maximum 49 per cent to the equity of the fund.

For setting up IDF, any NBFC has to have minimum 5 years of experience with profits for last 3 years, should have minimum net owned funds of Rs.3000.000 Millions, a capital adequacy ratio of 15 per cent and NPAs should be less than 3 per cent of net advances.

In case of IDF-NBFC, the entity must have a minimum credit rating of ‘A’ of CRISIL or equivalent rating, its Tier II capital cannot exceed Tier I and can invest only in public private partnership (PPP) and post commercial operational date (post-COD) infrastructure projects which have completed at least one year of satisfactory commercial operation. IDF-NBFC, registered with RBI, can raise resources through issue of either Rupee or Dollar denominated bonds of minimum 5-year maturity and the investors would be primarily domestic and off-shore institutional investors, especially insurance and pension funds, which have long-term resources. IDF-NBFC also needs to enter into a tripartite agreement with the project concessionaire and the project authority.

Eligible non-resident investors can invest in Rupee denominated units issued by IDF-MFs registered with SEBI. Any IDF-MF must invest minimum 90 per cent of its funds in debt securities of infrastructure companies or special purpose vehicles (SPVs) across all infrastructure sectors, project stages and project types.

After careful evaluation of the eligibility criteria and the degree of flexibility of investing, the Company has embarked on the process of floating an IDF-MF to tap India’s infrastructure opportunities.

The year under review also witnessed further relaxation of the external commercial borrowing (ECB) window for IFCs. RBI has allowed IFCs to avail of credit enhancement under the automatic route for domestic debt raised through issue of capital market instruments like debentures and bonds from eligible direct/indirect foreign equity holder(s), which as per extant guidelines could be availed only from multilateral/regional financial institutions and Government owned development financial institutions, under the approval route.

RBI, while laying down guidelines on Credit Default Swaps (CDS) for corporate bonds, has stipulated that NBFCs shall only participate in CDS market as users and will be allowed to buy credit protection only to hedge their credit risk on corporate bonds held by them. NBFCs are not allowed to sell protection and hence cannot enter into short positions in CDS contracts. NBFCs can unwind their CDS position with the original counterparty or by assigning them in favour of buyer of the underlying bond.

NBFCs are to maintain a minimum capital adequacy ratio based on risk weights assigned to both on and off balance sheet items. They, however, recognise only six categories as off balance sheet items which have linkages to NBFC activities. To expand the off balance sheet regulatory framework, RBI has now stipulated that NBFCs will need to calculate the total risk weighted off balance sheet credit exposure as the sum of the risk weighted amount of the market related and non-market related off balance sheet items.

RBI has instructed NBFCs to strictly adhere to issuance of non-convertible debentures (NCDs) with a tenor of 90 days to 1 year.

In a separate development during the year , the Cabinet Committee on Infrastructure has come up with a master list of Infrastructure Sectors which now has 5 major sectors and 29 sub-sectors. The 5 major sectors are (a) Transport, (b) Energy, (c) Water Sanitation, (d) Communication, and (e) Social and Commercial Infrastructure. This master list will serve as a reference point, although the Committee allows flexibility to each financing agency to spell out its reasons and draw its own list of eligible sub-sectors out of the master list with adequate justification for inclusion or exclusion of any subsector from its list. Such a master list will also serve as a reference point for NBFCs, especially IFCs.

BUSINESS OUTLOOK AND FUTURE PLANS

India has stepped into the Twelfth Five Year Plan (2012-17) where the total investment figure for infrastructure is envisaged at USD 1 trillion and within that 50 per cent of that is expected to come from the private sector. However, the prolonged high interest regime has affected the infrastructure verticals and today the sector is saddled with depleting order books, broken cash cycles, high leveraging, debt restructuring and a rising NPAs.

Union Budget FY13 was expected to come up with initiatives that would set in motion infrastructure activities. Some of the welcome announcements were:

· Allowing ECB window to the cashstarved power and aviation sectors

· Increasing the scope for Viability Gap Funding (VGF) to new areas like irrigation, oil and gas pipelines, agriculture market terminals, etc.

· Allowing infrastructure public sector undertakings (PSUs) to raise tax-free bonds worth USD 12 billion

· Allowing import duty exemptions for equipment imports in solar power, energy-saving devices, safety equipment for railways, aircraft maintenance equipment, specified road construction equipment, coal mining machinery, etc.

· Providing incentives for affordable housing.

While plan outlay for FY13 registered an increase of 22 per cent over previous year, outlay for infrastructure for FY13 stands increased to almost USD 30 billion, an increase of 32 per cent over previous year. The budget also announced that the first infrastructure debt fund (IDF) will be launched soon.

Government is also committed towards implementing a Direct Tax Code (DTC) and introducing a Goods and Services Tax (GST). The micro-issues on these fronts are being ironed out.

However, to get the private sector enthused about investing in infrastructure projects, attention has to be given to regulations which would ensure project viability. Regulations need to be fully thought through to avoid frequent changes in policies as those pose a risk for private investment by leading to time and cost overruns. The issue of land acquisition remains a sensitive issue with different states adopting different policies regarding resettlement, rehabilitation and compensation of the displaced. Clarity on guidelines for environmental clearances is also a must for speedy project implementation. Shortage of skilled and semi-skilled manpower is emerging as a serious issue. This is one area where private sector has to partner the government for expeditious scaling up of human capital. Planning Commission Chairman Mr. Montek Singh Ahluwalia has gone on record saying Twelfth FYP will focus on skill upgradation of human capital. These issues, once addressed, will result in greater investment flow into India’s infrastructure.

However, the budget proposals on GAAR and taxation on retrospective basis have put a huge question mark on the future of the India Growth Story. The principal motive for GAAR is to plug any loophole that would allow an entity to go without paying capital gains tax or withholding tax while conducting any transaction (sale or purchase) of an asset based in India. But applying it on a retrospective basis and that too for 50 years, has made investors nervous. Government is trying to address these investor concerns.

Clarity in policy and regulations is the need of the hour. On the policy front, the Company has established a regular channel of communication and feedback with relevant Ministries and government agencies. This is because the management of the Company is upbeat and confident about India’s prospects among its global peers. The Company believes the recent problems on the policy front are temporary in nature and will get addressed in due course. India will continue to remain an attractive investment destination.

RBI has started lowering its policy rates and it is expected that CRR will be cut further to inject more liquidity into the system. And once Government succeeds in bringing in some clarity on the policy front, investment will ultimately pick up, and with that investment in infrastructure too. And when that happens, the Company with its in-depth knowledge of the infrastructure business, strong financial position, prudent risk management techniques and its knack for innovation, will be all set to take advantage of the opportunities that would unfold. Even if the business environment remains tough, the Company is adequately geared to meet the challenges.

BUSINESS REVIEW

The three main business activities of the Company are categorised as Fund based, Fee based and Strategic Investments.

I. FUND BASED ACTIVITIES

INFRASTRUCTURE PROJECT FINANCE

The Government has identified infrastructure development as a key priority area in its five year plans. The Eleventh Five Year Plan (FY 2007-12) envisaged an investment of about Rs.21 lakh crore (USD 514 billion) in the infrastructure sector. The Government of India has doubled the planned expenditure on infrastructure during the Twelfth Five Year Plan (FY 2012-17) to USD 1 trillion. It emphasises the importance of investment in infrastructure for achieving a sustainable and inclusive growth of 9 to 10 per cent in GDP over the next decade. The investment in infrastructure as a percentage of GDP is expected to increase from 5.15 per cent during the Tenth Five Year Plan to 7.55 per cent during the Eleventh Five Year Plan and to 10 per cent during the Twelfth Five Year Plan. This constitutes a significant shift in favour of investment in infrastructure.

Given the scale of investment required, a substantial proportion of the investment will have to be met through private financing or Public Private Participation (PPP). Private sector share in the infrastructure spending is expected to increase from an estimated 36 per cent in the Eleventh Five Year Plan to 50 per cent in the Twelfth Five Year Plan. The Company believes that given its history, capabilities and financial strength, it is well placed to benefit from these opportunities. During the previous financial year, the Company successfully obtained from RBI a change in the Company's classification to an Infrastructure Finance Company (IFC), which among other things has helped it to diversify its borrowings, access long-term funds to a greater extent, and a flexibility to increase its exposure to borrowers and groups. During the year, the Company has been notified as a Public Financial Institution under the provisions of the Companies Act, 1956.

Given the thrust on infrastructure creation and recognising the growth potential in the sector, the Company has remained focused on infrastructure financing for the last two decades, and has established itself as a holistic infrastructure institution, providing a range of innovative financial solutions including equipment/asset finance, project finance, operating leases, debt syndication, etc. Over the years, the Company has financed various small and medium sized projects that have contributed to the symbiotic growth of both the project developers and the Company. Leveraging upon its acute and in-depth knowledge of the infrastructure sector, combined with its expertise in financial structuring and the continued support of various bilateral/multilateral agencies, the Company was able to expand infrastructure project finance business and has emerged as a strong niche player. While there are many financial institutions/ banks to fund infrastructure development in the country, IFCs like the Company, have been active in financing the small and medium sector projects, thus facilitating a more inclusive growth.

During the year , the Company sustained its healthy growth. Its aggregate portfolio size recorded a growth by over 78 per cent to Rs.88970.000 Millions in the financial year 2011-12. The key infrastructure investments in various sectors included Conventional Power, Renewable Energy, Roads, Ports, SEZ and Industrial Parks, Telecommunications, Oil and Gas, Urban Infrastructure, etc. Through its structured risk mitigation techniques, its innovative financing structures, security packages and maturity profiles of loans, the Company was able to contribute to an increased availability of infrastructure services in the country with better efficiency.

Power:

Power generation in the country has grown at CAGR of 5.8 per cent during the period FY 1990-91 to FY 2010-11. It is estimated that, in order to sustain GDP growth at 9 per cent, the demand for grid power will grow by 6 per cent per annum to 1,200 billion units (Bu) by the end of the Twelfth Plan. If fuel oil / diesel based captive generation is to be curtailed, as it should be for energy efficiency, they have to plan for grid supply of at least 1,350 Bu. Although the Eleventh Plan had targeted creation of 79 GW of additional capacity for grid power, actual realisation may not exceed 50 GW, largely on account of slippages in public sector projects. The shortfall in achieving the targets has been primarily due to poor project implementation, shortage of indigenous power equipment and slow down of capacity addition due to lack of fuel, particularly coal. As more than 80 GW of new power capacity is already under construction, it may be reasonable to target 100 GW of new power capacity during the next Plan. This will, however, need an effective resolution of issues on availability of fuel (notably coal) and effective measures for improving financial health of power utilities. Over 40 GW of planned capacity has been mothballed as of March 2012, due to coal supply bottlenecks and price curbs. The Twelfth Plan should, therefore, aim at capacity creation of about 100 GW, which will include 29 GW of capacity from projects which were supposed to be completed in the Eleventh Plan, but are now expected to be completed in the first two years of the Twelfth Plan. Capitalising on this vast opportunity, the Company has allocated about 35 per cent of its total allocation to this sector. With an interest in thermal power, wind power, solar power, hydro-electric power and power from co-generation and waste heat recovery systems, during the year, the Company has executed several transactions with power generation companies with financial participation in over 2700 MW of thermal power plants, over 500 MW of wind farms and over 500 MW of hydro power plant among others. During the year, the Company also financed power transmission and distribution projects.

Railways and Logistics:

The Indian Railways' contribution to national integration has been unparalleled. It has played a unique role in meeting the transportation needs of the common man, while simultaneously serving as a critical infrastructure facilitator for the carriage of goods. Indian Railways are one of the largest rail networks in the world carrying 22 million passengers every day and carrying 923 million tonne of freight a year.

Like other sub-sectors of infrastructure, there is a need to improve the railway sector in order to ensure a better future for the country. The private sector's contribution to railways has increased considerably over the years from 0.6 per cent in the Tenth Five Plan to 4.1 per cent in the Eleventh Plan. The Indian Railways has allowed private sector entities to operate container trains. The Indian Railways has put into place 'Vision 2020' which envisages private investments in the railways at USD 304 billion spread across augmentation of capacity and modernisation over the next 10 years. The Twelfth Five Year Plan envisages an investment of USD 74 billion as compared to USD 50 billion in the Eleventh Plan which will result in the emergence of many opportunities in the railway segment. The Company has examined investment opportunities in financing rolling stocks (including liquid cargo container movement), setting up of Inland Container Depots (ICDs), warehouses and cold storages and development of railway sidings. The proposed Wagon Leasing Scheme announced by the Indian Railways is expected to throw open vast business opportunities for the Company.

Aviation and Airports:

Airport standards across India, with a few recent exceptions, need considerable up-gradation to come up to global benchmarks. The Eleventh Plan saw extensive modernisation of the airport infrastructure through a combination of public and private investment. Chennai and Kolkata airports are being modernised by the public sector along with 35 non-metro airports. The two major metro airports viz. Delhi and Mumbai have been successfully modernised in the PPP model. In addition, Hyderabad, Bangalore and Cochin airports offer good examples of the success of the PPP model.

India is expected to be the fastest growing civil aviation market in the world. Considering the growth in the Indian economy and the need to develop aviation infrastructure, investments to the tune of USD 30 billion are required in airport development over the next fifteen years. In addition, 'Vision 2020' issued in 2007, envisages the requirement of 1,000 aircraft upto 2020. It also aims at modernisation of all the airports with multiple airports at large metropolitan cities. To meet these goals, the Planning Commission has allocated USD 17 billion for the aviation sector in the Twelfth Plan as compared to USD 9 billion in the Eleventh Plan. The Company has participated in a number of transactions in the aviation sector in the past and will continue to closely follow developments and opportunities in this sector.

Ports and Port Equipment:

The capacity of their ports to deal effectively with growing international trade volumes has increased in the Eleventh Plan in part on account of private investment in the so-called minor ports, as well as container terminals dry-bulk and liquid handling facilities in the major ports. As a result, both berthing time and turn-around times have fallen. However, investment in ports will meet only 50 per cent of the Eleventh Plan target. It is imperative that the pace of expansion of the port sector will increase in the Twelfth Plan. It is estimated that investments in the port sector during the Twelfth Plan would be approximately USD 26 billion, an increase of about 160 per cent from the previous plan period. During the year, the Company has expanded exposure to this sector by financial participation in a mix of major ports, minor ports and captive ports. The port sector now comprises about 10 per cent of the portfolio of the Company.

Telecommunications:

The Indian telecom industry has expanded tremendously in size and reach, with the total number of landline and mobile subscribers crossing 950 million. However, tele-density in India is still lower compared to many developing countries and there is still plenty of scope to increase tele-density, particularly in rural areas, improve broadband facilities and increase 3G and other value added services. To meet these goals, the Twelfth Plan envisages an investment of USD 253 billion. Today, the sector faces several challenges and is mired in controversy on the allotment and cancellation of 2G licenses. In spite of the challenges, leveraging on its acute understanding of this industry and its long standing relationships with vendors, during the year, the Company has structured financing packages that include investment in telecom towers and rural connectivity.

Roads:

A good road network is a critical infrastructure requirement for rapid growth. India has the second largest road network in the world totalling over 4.24 million km but most of it is of poor quality. Half of the network is not paved and the National Highways account for only 2 per cent of the total length. The roads in India need massive investments to increase and improve network coverage, quality of roads, rural penetration to connect villages to cities, etc. The Twelfth Plan envisages an investment of USD 123 billion in this sector, which is more than 70 per cent higher than USD 70 billion planned under the Eleventh Plan. During the year, the Company has selectively participated in financing road projects aggregating over 1,500 km allotted by National Highway Authority of India (NHAI) and State Authorities.

INFRASTRUCTURE EQUIPMENT FINANCE -SREI EQUIPMENT FINANCE PRIVATE LIMITED (SREI BNP PARIBAS)

Srei BNP Paribas, a joint venture between the Company and BNP Paribas Lease Group, is registered with RBI as a non-deposit taking NBFC (Category - Asset Finance) and is in the business of equipment financing with a wide spectrum of asset finance business which includes Technology and Solutions, Healthcare, Captive financing solutions for leading manufacturers like Volvo and Logistic Solutions. Infrastructure is the sector, which contributes to a majority, and client profile includes the best names in the country today. Some of the large names have been in a stress but the superior risk mitigation and relationship that Srei BNP Paribas enjoys with the customers help keep all major accounts regular.

Srei BNP Paribas has been able to maintain its position as one of the leading equipment financier in India in the last financial year in continuation to its previous year with a disbursement of asset cost of over Rs.150000.000 Millions, which has been far higher than the growth in the equipment sales. The industry grew at an average of 35 per cent and this year witnessed entry of new buyers especially in the entry segment. The market share of Srei BNP Paribas is at a dominant 30 per cent amongst all financiers in this business vertical.

In the year , the total disbursements in terms of asset cost of Srei BNP Paribas grew by 50 per cent from Rs.100100.000 Millions to Rs.150160.000 Millions, with an increase in portfolio by 45 per cent, and the profit before tax from Rs.2130.000 Millions to Rs.3050.000 Millions.

During the year , Srei BNP Paribas made a start in logistics, pre-owned equipment and farm equipment. These new businesses will help in diversification of portfolio, and open new vistas for future. New branches have been added and the geographical footprint has increased.

The prognosis for the year ahead is positive, but circumspect in certain geographies and sectors. Investments in infrastructure sector will grow, both in public and private sector, and the contribution of new business like logistics and pre-owned equipment will add to the business volumes. The relationship between both the shareholders, Srei Infrastructure Finance Limited and BNP Paribas Lease Group, continues to be at the best terms and best practices and cross selling opportunities are being exploited. Srei BNP Paribas will have a cautious approach and watch policy decisions with strong focus on relationship with customers and assisting in their business as partners.

In order to improve the capital adequacy ratio and infuse fresh Capital for growth, both the shareholders subscribed to 16,10,000 Equity shares respectively of Srei BNP Paribas in June, 2011 at a price of Rs.310/- per Equity share aggregating to Rs.998.200 Millions.

INTERNATIONAL BUSINESS OPERATIONS

Ever since the turn of the century, like every innovative business in India, the Company too wanted to take Indian business to the world, as an Infrastructure Company. This marked the first step towards globalisation of the Company's business and thus the first overseas subsidiary company in Germany was set up in year 2003 in the name of IIS International Infrastructure Services GmbH (IIS) as a limited liability company. The objective for setting up IIS was to provide infrastructure advisory and equipment renting company in Europe and other foreign countries.

Through IIS, the Company has made investments in leasing and advisory business in Russia, Singapore and UAE. IIS is the overseas holding company and acts as the fulcrum for making overseas investments in various countries and IIS is providing strategic directions to these subsidiaries on ongoing basis.

The Company commenced business in Russia in year 2006 through its step down subsidiary, ZAO Srei Leasing (ZSL). The Company holds 64 per cent share capital in ZSL through IIS with the balance 36 per cent being held by International financial institutions like EBRD, DEG and FMO. The company is in active operation since last six years and survived severe financial crisis in Russia during 2008-09. In 2011, the Russian economy has demonstrated recovery trends backed by high oil prices. The leasing market grew by almost 50 per cent to USD 50 billion approx. Capitalising on this trend, the company has recorded over 100 per cent growth in its business in 2011 continuing the trend of profitability since its inception in 2006.

ZSL has invested in relationship development with major vendors and financial institutions which have helped the company achieve growth in disbursements and access to affordable funds. ZSL remained focused in liquid infrastructure assets which has enabled the company to maintain portfolio quality. At the same time, the company has also adopted a cautious approach and is looking to finance clients with strong balance sheets and sustainable business models.

In order to increase market visibility, ZSL is aggressively undertaking branding exercises, the impact of which was seen in the previous year and will be more prominent in coming years. As on September 30, 2011, ZSL ranked among top 60 leasing companies in Russia out of about 700 leasing companies in the country a need to establish best industry practices from across the globe to efficiently manage the operations. Keeping this in mind, ZSL is planning to ramp up its activities by strengthening Standard Operating Procedures (SOPs) for various critical business processes, increase manpower, extend its distribution network by opening three representative offices in the country. The company is also in the process increasing its share capital by USD 10 million approx in the current year by way of a rights issue to its existing shareholders. This would be big boost to the aggressive business strategies planned for ZSL during next three years.

With the leasing market expected to grow further by about 30-50 per cent in 2012, ZSL is anticipating an average business growth of about 50-60 per cent during next three years. Keeping the momentum, the company will continue to invest in relationship development in the current year and look to expand its geographical presence in Russia which will help the company achieve a sustainable growth and enhance shareholder value in the long run.

II. FEE-BASED ACTIVITIES INFRASTRUCTURE PROJECT ADVISORY

Infrastructure Project Advisory Division of the Company has now proven credentials through successful execution of key assignments and is positioning itself in all major thrust areas of infrastructure in energy and power, transportation - through sustainable approach in mass public transport, conventional transport planning of urban and regional areas, etc. Their endeavour in urban development sector is through integrated city development in roads, water supply, sewerage, tourism, recreation, etc. The Advisory Division has streamlined its focus in Social Infrastructure Sector in Education and Skill Development. It continues to provide services in conceptualisation, feasibility, detailed project reports, bid process, business plan and structuring of PPP models with innovative tools.

The Company has successfully concluded execution of key assignments in mass transportation assignments in Bangalore, Mumbai and Lucknow. The Advisory Division of the Company is involved in prestigious strategic road master planning of Uttar Pradesh and this assignment has been delivered with specialised in-house inputs on demand modelling with precision. The Advisory Division has positioned itself in future strategy for more business opportunities from the State.

In the Urban Infrastructure space, the Advisory Division is advancing its progress in Southern States and has been rewarded with overwhelming mandates by Bangalore Development Authority in detail planning and design of Rehabilitation of EWS Housing Schemes and Redevelopment of Sheshdripuram Market Projects. The Company has managed to bag sizeable mandates from Cuttack Development Authority on PPP structuring of Housing Projects. The Advisory Division is currently involved in consultancy for City Development Plans of ten Municipalities in the State of Madhya Pradesh. In tourism sector, the Company has been awarded with an assignment by Asian Development Bank (ADB) for Transaction Advisory services for development of Vizag Tourism Cluster and Lepakshi Tourism Cluster in the State of Andhra Pradesh. The Company has also penetrated in the western region through a focused approach and secured project management mandates in water sector in Goa. The Company is also involved in strategic global advisory support (first in India) to foreign developers in recreation sectors like giant Aquarium / Oceanarium for the cities of Mumbai (Thane) and Jalandhar. These assignments are in progress and likely to multiply in coming years.

The Company continues its efforts in the Education Sector to help the Schools adopt the State of the Art tools and techniques in evaluation of students' performance in an objective and scientific manner. The CCE solution compatible software programme package developed by the Company is being installed in schools in the form of Web based and Windows based Applications. The Company also imparts necessary training to School Teachers on CCE issues and has been empanelled by CBSE. During the year, the Company has successfully completed the capacity building programme for CCE training mandated by CBSE for 100 schools pan-India. Advisory skills have acquired the status of 'Knowledge Partners' in the Company and have been synergising with other verticals to enhance value added services and cross functional specialised services. The Advisory Division has been teaming with Infrastructure Project Development and Srei Sahaj Groups in transportation (Personal Rapid Transit in Amritsar) and capacity buildings programmes (National Schemes on Skill Development) and have been quite successful.

To enhance the business spectrum of advisory through strategic approach, the Company is targeting ambitious projects in infrastructure sector. The Advisory Division of the Company has been contemplating its efforts on attracting business opportunities emerging from the implementation of 'Delhi Mumbai Industrial Corridor Project' and has been empanelled by DMICDC as 'Consultants as Programme Managers'. This is a mega project and given an opportunity, the Advisory Division will gain a key recognition in the advisory segment - nationally and globally for all times to come. This will lead to sustainable stream of revenues in focussed areas and identify strategic investment potential.

INFRASTRUCTURE PROJECT DEVELOPMENT

Infrastructure Project Development has given the Company an opportunity to emerge as India's one of the leading Infrastructure Developers in the Road sector. This feat could be achieved because of the Company's strong presence and functional expertise in the infrastructure space through equipment financing, project financing and project management expertise. The Company's intellectual capital strength helped it to leverage and build inextricable partnerships with customers and other leading global concessionaires and ensures effective coordination and smooth sailing of projects from beginning to end. The Company's in-house knowledge, strength of financial engineering and solutions, knowledge of customers as partners have created a unique model of "Prosperity through Partnership" and a win-win solution for all stakeholders.

Presently, the Company, under consortium arrangements with various companies, has a diversified portfolio of annuity and toll-based road projects close to 5,500 lane km with a total Capital Cost of around Rs.130000.000 Millions, awarded by the National Highways Authority of India (NHAI) under National Highways Development Programme (NHDP), Ministry of Road Transport and Highways (MORTH) and various other State Governments. During the year , the Company as co-developer has successfully completed the construction of Thrissur-Angamali Road Project in Kerala on NH-47 under NHAI and Jaora Nayagaon Road Project in Madhya Pradesh on SH-31 under Madhya Pradesh Road

Development Corporation (MPRDC). The Company has also received the commercial operation date (COD) for Chandikhole Jagatpur Bhubaneswar Project in Odisha on NH-5 under NHAI and the collection of Toll together with work for six laning of the project has commenced. The Company, under consortium arrangement, has further bagged two more prestigious Road projects worth Rs.14000.000 Millions, one in Maharashtra (Solapur - Maharashtra Karnataka Border) on NH-9 under NHAI and the other in Rajasthan (Bikaner to Suratgarh) on NH-15 under PWD Rajasthan on build-operate-transfer (BOT) basis under the Company's expanding portfolio.

III. STRATEGIC INVESTMENTS

The investment macro-scenario during FY 2012 was adversely impacted by high domestic interest rates, tightening liquidity, depressed primary markets, sudden depreciation of the Indian Rupee, rising energy costs and the negative fall-out of international financial markets grappling with the Eurozone debt crisis. Unlike 2008, there was a lack of swift policy responses by the authorities to the emerging situation; the problems associated with sluggish decision-making were further compounded by controversies over financial wrong-doing. This increased economic uncertainty levels and impacted investor sentiments adversely. In particular, sectors such as telecom, power and mining were hard-hit by negative investor sentiments.

The Company has always taken a long term view on its investments. While there has been continued investor interest in their investment portfolio, optimising value for shareholders requires that they exercise patience and wait for the right opportunity to capture value. Economic conditions during 2011 were not conducive to realising right value. With approximately USD 7 billion of initial public offerings (IPOs) being cancelled or deferred during 2011, either raising equity or exiting through IPOs was not available as an option. While private equity (PE) funds were active during the year, deal sizes were relatively small and mismatches in valuation expectations between sellers and prospective investors was a common refrain in the PE space.

However, with signs of recovery in the US economy, and global stock markets beginning to show an upward trend during the last quarter of FY 2012, the changing economic scenario may offer better opportunities during FY 2013, especially if policy inaction is addressed and domestic reforms are pushed through. In the interim, the focus of the Company will be on closely managing existing investments with a view to enhancing value.

The Company believes strongly in the resilience of the Indian economy and its ability to sustain and improve growth rates over the longer term. Based upon this conviction, the Company continues to look at new investment opportunities related to the infrastructure and financial sectors where it can add value with its deep knowledge of the sector, its skilled resources, the ability to access financing and scale up operations, and bring in partners where needed. Such transactions carry relatively lower risk while holding out the prospect of above average returns. The Company will also continue to focus on identifying opportunities in emerging verticals within the infrastructure sector that offer strong prospects for future growth, such as water and waste management and renewable energy.

In terms of the investment process and risk management, the Company continues to refine its policies, procedures and risk review systems to ensure that its investment portfolio is subject to sound controls and decisions are taken after thorough and exhaustive analysis to safeguard shareholders' interests.

RESOURCES

The Company is classified as an IFC by RBI within the overall classification of NBFCs in India. The Company has been mobilising resources at the most competitive rates and raised the required resources from its bankers and financial institutions all the while ensuring proper asset liability match.

Bank Finance

The Company mobilised resources to the extent of Rs.40850.000 Millions during the year at the most competitive rates available in the market and continued its focus on domestic sources.

Bonds / Debentures / Commercial Papers

The Company has focused to mobilised long term funds by issue of Non Convertible Debentures (NCDs) to maintain healthy assets liability profile. You Company has mobilised Rs.6530.000 Millions by issue of Long Term NCDs during the FY 2012. You Company has also mobilised Rs.248.900 Millions by issue of Long Term Infrastructure Bonds during FY 2012. The Company has also raised Rs.71145.000 Millions through Commercial Papers during FY 2012.

Tier II Capital

To augment resources and increase the capital base, the Company raised Tier II Capital aggregating to Rs.3500.000 Millions during the year.

Foreign Institutional Borrowings

The Company has drawn ECB of USD 30 million and Euro 15 million during the FY 2012 inspite of tight liquidity in the international market. The Company has drawn Euro 15 million from Oesterreichische Entwicklungsbank AG (Development Bank of Austria) which is their first loan in India. As liquidity in the international market improves, the Company will endeavour to mobilise much more long term funds under ECB window for on-lending to borrower in the infrastructure sector. This will equip the Company with long term funds and enable to maintain healthy asset-liability profile.

DIRECTORS' PROFILE

Salil K. Gupta

Chief Mentor

He has more than 54 years of experience and has served as the former Chairman of West Bengal Industrial Development Corporation Limited, a leading state financial institution. He has also served as the President of The Institute of Chartered Accountants of India.

Hemant Kanoria

Chairman and Managing Director

He has over 32 years of experience in industry, trade and financial services. He is presently the Chairman of the National Committee on Infrastructure of Federation of Indian Chambers of Commerce and Industry (FICCI), Member of FICCI National Executive Committee and Council Member of Indo-German Chamber of Commerce. Previously, he has been on the Board of Governors of Indian Institute of Management - Calcutta, Member of Regional Direct Taxes Advisory Committee, Government of India and President of Calcutta Chamber of Commerce.

Sunil Kanoria

Vice Chairman

He is a Chartered Accountant with more than 24 years of experience in the financial services industry. He is presently the Vice President of The Associated Chambers of Commerce and Industry of India (ASSOCHAM), Member of the Central Direct Taxes Advisory Committee and the Governing body member of the Construction Industry Development Council (CIDC). He has also served as President of Merchants' Chamber of Commerce, Federation of Indian Hire Purchase Association (FIHPA) and Hire Purchase and Lease Association (HPLA) and has also served as a Member on Planning Commission's Working Group on Construction for the Tenth Five Year Plan.

Saud Ibne Siddique

Joint Managing Director

He has over 28 years of global infrastructure financing experience. He has worked with the International Finance Corporation (IFC), the private sector arm of the World Bank, for more than 16 years, based out of Washington DC. During 2004-2007, he was based out of Hong Kong, and was the head of business development for infrastructure projects in the East Asia and Pacific region for IFC. He has also served as the CEO and Board Member of a publicly listed water infrastructure fund in Singapore. He was a member of the top management of Hyflux Ltd. in Singapore, one of the leading water infrastructure companies of Asia. He also previously worked with Swiss Bank Corporation in New York on structured financing and asset securitisation transactions. He is a member of the Board of Directors and Chairman of the Audit Committee of the Emerging Africa Infrastructure Fund (EAIF). The EAIF, a USD 700 million fund, is sponsored by a prestigious group of investors including UK, Dutch, German, Swedish and Swiss government entities and leading private global banks. He has been a visiting faculty at the Indian Institute of Management, Calcutta.

V. H. Pandya

Director

He is an Economics and Law graduate and an associate of the Indian Institute of Bankers. He has spent over 47 years in the banking and financial industry, holding offices with India's Central Bank - Reserve Bank of India (RBI), the Capital Markets Regulator - Securities and Exchange Board of India (SEBI) and the Industrial Development Bank of India (IDBI).

S. Rajagopal

Director

He is the former Chairman and Managing Director of Bank of India and a former Chairman of Indian Bank and has more than 39 years of experience in the banking industry.

Shyamalendu Chatterjee

Director

He has over 45 years of experience in Commercial and Investment Banking. He was the Executive Director of UTI Bank Limited, Mumbai. He has extensive exposure in the areas of International Banking having worked in SBI, London for 3 years and in Washington D. C. for 5 years. He has expertise in the areas of Corporate Finance, International Business, Retail Banking, Project Financing and Balance Sheet Management, among others.

Satish C. Jha

Director

He is a Former Director and Chief Economist of Asian Development Bank, Manila and President of Bihar Council of Economic Development. He was also a Member of the Economic Advisory Council to the Prime Minister and Chairman, Special Task Force on Bihar.

Sujitendra Krishna Deb

Director

He is a Chartered Accountant with over 41 years of experience in the Assurance and Business Advisory services of a Big Four Firm in India, where he was a partner for a little over two decades; experience in Due Diligence Review, Valuation and Internal Audits, among others.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
a. Bank Guarantee1	170.700	192.900
b. Corporate Guarantee to bank	1381.500	479.500
c. Disputed income tax demand2	365.400	236.400
d. Fringe Benefit Tax3	22.600	22.600
Total	1940.200	931.400

Notes:

1 Includes Rs.89.200 Millions (31st March, 2011: Rs.101.700 Millions) issued on Company’s behalf by a Joint Venture Company.

2 Certain Assessment Orders disallowing Special Reserve (created as per Section 45-IC of the RBI Act, 1934) and Debt Redemption Reserve for the purpose of determining tax liability as per the provision of Section 115JB, Disallowances under section 14A, Disallowance of Provision for NPA, Disallowance of Provision for earned leave encashment, matters relating to deduction u/s 36(i)(viii), Upfront Fees on Borrowings and Long-Term Capital Gain arising out of transaction under a Scheme of Arrangement sanctioned by the Hon'ble Calcutta High Court on 28.01.08 have been challenged by the company before the appropriate authorities. Pending disposal of the cases filed, the Company has not provided for the Income Tax liabilities arising out of the same.

3 The Company has challenged the constitutional validity of Fringe Benefit Tax (FBT) before the Hon’ble High Court at Calcutta and the Hon’ble Court has granted interim stay on levy of such FBT on the Company. In view of this, the Company has not provided for any liability against FBT since its inception upto the date of its abolition i.e., 31st March, 2009.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	L29219WB1985PLC055352
Name of the company	SREI INFRASTRUCTURE FINANCE LIMITED
Address of the registered office or of the principal place of business in India of the company	Vishwakarma, 86-C, Topsia Road (South), Kolkata-700046, West Bengal, India E-Mail Id : secretarial@srei.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10311243
Type of charge	Book debts Others (Specific pool of assets and receivables)
Particular of charge holder	United Bank of India, Corporate Finance Branch, 11, Hemant Basu Sarani, Kolkata – 700001, West Bengal, India E-mail Id : bankservices.3005@yahoo.in
Nature of instrument creating charge	(1) Loan cum Hypothecation Agreement dated 26.09.2011. (2) No Objection letter for modification of charge from United Bank of India dated 06.11.2012.
Date of instrument Creating the charge	06.11.2012
Amount secured by the charge	Rs.2000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 1.40% (floating), presently @ 11.85% p.a. (Same as original agreement dated 26.09.2011) Terms of Repayment Term Loan will be repaid in 16 equal quarterly installments of Rs. 125.000 Millions after a moratorium of 6 months from the date of first disbursement. Installments will be payable at the end of the quarter. 1st installment will tentatively commence from 30.06.2012 and end on 31.03.2016. (Same as original agreement dated 26.09.2011) Margin 15% on outstanding lease rental receivables covered by outstanding credit under Operating / Finance lease. (Same as original agreement dated 26.09.2011) Extent and Operation of the charge Exclusive charge by way of hypothecation of specific pool of assets, future receivables arising there from, with beneficial interest on underlying assets. The company shall undertake to replace the assets with fresh assets having equivalent NPV with no default history and overdue, where: (a) Loans (asset) in respect of which three installments have become overdue. (b) Loans (asset) which are foreclosed (Same as original agreement dated 26.09.2011)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive charge by way of hypothecation of specific pool of assets, future receivables arising there from, with beneficial interest on underlying assets. The company shall undertake to replace the assets with fresh assets having equivalent NPV with no default history and overdue, where: (a) Loans (asset) in respect of which three installments have become overdue. (b) Loans (asset) which are foreclosed (Same as original agreement dated 26.09.2011)
Particulars of the present modification	Charge ID. No. 10311243 for Rs. 5000.000 Millions (TL - Rs. 2000.000 Millions & CC - Rs. 3000.000 Millions) was created on 26.09.2011. By the present modification, Cash Credit (CC) of Rs. 3000.000 Millions has been merged with consortium arrangement and the Term Loan (TL) of Rs. 2000.000 Millions remains unchanged.

FIXED ASSETS:

Ø Freehold Land

Ø Building

Ø Furniture and Fixtures

Ø Machinery

Ø Software

Ø Plant and Machinery

Ø Aircrafts

Ø Office Equipments

Ø Computers

Ø Leasehold Improvements

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2012

(Rs. In Millions)

Particulars	Quarter ended		Half Year ended
	30.09.2012 (Reviewed)	30.06.2012 (Reviewed)	30.09.2012 (Reviewed)
1. Income (a) Income from Operations (b) Other Operating Income	4213.000 8.400	3931.200 160.800	8144.2 00 169.200
Total Income from Operations	4221.400	4092.000	8313.400
2. Expenses (a) Employee Benefits Expense (b) Legal and Professional Fees (c) Operating and Other Expenses (d) Bad Debts written off (e) Provision for Bad and Doubtful Debts and NPAs (f) Contingent Provisions against Standard Assets (g) Depreciation/ Amortisation and Impairment	131.600 64.600 90.500 - 3.600 (0.900) 157.300	105.600 35.200 81.000 - 4.100 19.200 46.300	237.200 99.800 171.500 - 7.700 18.3 00 203.600
Total Expenses	446.700	291.400	738.100
3. Profit from operations before Other Income, Finance Cost and Exceptional Items (1-2)	3774.700	3800.600	7575.300
4. Other Income	24.100	1.700	25.800
5. Profit from ordinary activities before Finance Cost and Exceptional Items (3+4)	3798.800	3802.300	7601.100
6. Finance Cost	3102.100	3658.400	6760.500
7. Profit from ordinary activities but before Exceptional Items (5-6)	696.700	143.900	840.600
8. Exceptional Items	-	-	-
9. Profit from ordinary activities before Tax (7-8)	696.700	143.900	840.600
10. Current tax expenses	205.300	48.500	253.800
11. Income Tax in respect of earlier years	-	-	-
12. Net Profit from ordinary activities after Tax (9-10-11)	491.400	95.400	586.800
13. Extraordinary Items (net of expenses)	-	-	-
14. Net Profit for the Period/Year (12-13)	491.400	95.400	586.800
15. Paid-up Equity Share Capital (Face Value ? 10/- each)	5032.400	5032.400	5032.400
16. Reserves excluding Revaluation Reserves
17. Earnings per share- Basic and Diluted (?)	*0,98	*0.19	*1.17
A. Particulars of Shareholding 1. Public shareholding (excluding Global Depository Receipts) - Number of Shares - Percentage of Shareholding	258400769 51.37	265347427 52.75	258400769 51.37
2. Promoters and promoter group shareholding (a) Pledged/Encumbered - Number of Shares - % of Shares (to total shareholding of promoters and promoter group) - % of Shares (to total share capital of the company) (b) Non Encumbered - Number of Shares - % of Shares (to total shareholding of promoters and promoter group) - % of Shares (to total share capital of the company)	89858543 36.73 17.86 154805421 63.27 30.77	89858543 37.80 17.86 147858763 62.20 29.39	89858543 36.73 17.86 154805421 63.27 30.77
B. Investor Complaints -Pending at the beginning of the quarter -Received during the quarter -Disposed off during the quarter -Remaining unresolved at the end of the quarter	Nil Nil Nil Nil

* Not annualized

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

Particulars	30.09.2012
	(Reviewed)
A. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital	5032.400
(b) Reserves and Surplus	21374.500
Sub-total; Shareholders' Funds	26406.900
2. Non-Current Liabilities
(a) Long-Term Borrowings	40269.300
(b) Deferred Tax Liabilities (net)	826.300
(c) Other Long-Term Liabilities	53.000
(d) Long-Term Provisions	385.900
Sub-total : Non-Current Liabilities	41534.500
3. Current Liabilities
(a) Short-Term Borrowings	59800.900
(b) Trade Payables	11.200
(c) Other Current Liabilities	10127.200
(d) Short-Term Provisions	6.100
Sub-total: Current Liabilities	69945.400
TOTAL - EQUITY AND LIABILITIES	137886.800
B.ASSETS
1. Non-Current Assets
(a) Fixed Assets	5018.100
(b) Non-Current Investments	26836.500
(c) Long-Term Loans and Advances	32669.500
(d) Other Non-Current Assets	635.200
Sub-total: Non-Current Assets	65159.300
2. Current Assets
(a) Current Investments	3505.000
(b) Trade Receivables	565.700
(c) Cash and Cash Equivalents	394.100
(d) Short-Term Loans and Advances	6086.200
(e) Other Current Assets	62176.500
Sub-total : Current Assets	72727.500
TOTAL - ASSETS	137886.800

Notes:

1) The above unaudited financial results were reviewed by the Audit Committee at its meeting held on 9th November, 2012 and approved by the Board of Directors at its meeting held on the same date. The Statutory Auditors of the Company have reviewed the said results.

2) The business of the Company falls within a single primary segment viz., 'Financial Services' and hence, the disclosure requirement of Accounting Standard-17 'Segment Reporting' notified by the Central Government under Companies (Accounting Standards) Rules, 2006 is not applicable.

3) Earnings per share (Basic and Diluted) have been calculated as per Accoundng Standard - 20 'Earnings Per Share' notified by the Central Government under Companies (Accounting Standards) Rules, 2006.

4) The Company has further infused an amount of Rs.998.200 Millions in Srei Equipment Finance Private Limited, the Joint Venture Company, by subscribing to it's Equity Share Capital in two equal tranches on 31.08.2012 and 01.10.2012.

5) The shareholding of the Company in Srei Sahaj e-Village Limited ('Sahaj') has reduced from 95.10% to 47.55% and hence Sahaj has ceased to be a subsidiary of the Company and has become an associate w.e.f. 13.08.2012.

6) Quippo Prakash Pte. Limited has ceased to be a step-down subsidiary of the Company w.e.f. 28.08.2012

7) Due to the fluctuation in foreign exchange rates, the applicable gain on foreign exchange transactions and translabons is Rs.196.900 Millions for the quarter ended 30th September, 2012 as against loss of Rs.323.600 Millions for quarter ended 30th September, 2011 and loss of Rs.317.600 Millions for the half year ended 30th September, 2012 as against loss of Rs.329.600 Millions for the half year ended 30th September, 2011.

8) Figures pertaining to the previous year/period have been rearranged/regrouped, reclassified and restated, wherever considered necessary, to make them comparable with those of current period.

PRESS RELEASE :

SREI INFRASTRUCTURE RECEIVES CERTIFICATE OF REGISTRATION FOR SREI MUTUAL FUND (IDF)

KOLKATA, NOVEMBER 15, 2012:

Srei Infrastructure announced today that it has received the Certificate of Registration for Srei Mutual Fund (IDF) from SEBI.

Commenting on the development, Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance Limited, said, “We are delighted to receive the approval for mutual fund. Infrastructure Debt Fund (IDF) via Mutual fund route opens up long term funding options for the infrastructure sector, which is the need of hour. Srei, a holistic infrastructure institution and sponsor to the mutual fund, has taken another step to meet the growing needs of infrastructure and Indian economy.”

CEO of Srei Mutual Fund Asset Management Private Limited, Mohit Sachdev, said, “Infrastructure sector in India offers a good long term opportunity for debt investors. Institutions, like Pension Funds, Insurance Companies and Provident Funds, which have long term liabilities require investment opportunities with matching cash flows. IDF via the Mutual Fund route would make a good investment vehicle for these institutions.”

SREI PBT GROWS 47% IN H1, FY13 TO Rs.2050.000 MILLIONS

KOLKATA, NOVEMBER 9, 2012:

Srei Infrastructure Finance Limited has recorded a 219% growth in its Consolidated Profit Before Tax during the quarter ended September 30, 2012 to Rs.1580.700 Million as compared to Rs.495.300 Millions same quarter last fiscal.

At the end of September, 2012, the total consolidated asset under management increased to Rs.325050.000 Millions from Rs.260010.000 Millions at the end of September, 2011, registering a growth of 25%. The consolidated total income for the quarter ended September 30, 2012 was Rs.7880.000 Millions as compared to Rs.5880.000 Millions in the corresponding period of the previous fiscal year, recording a growth of 34%. Consolidated disbursement during the quarter was Rs.23470.000 Millions as compared to Rs.44010.000 Millions in the corresponding period last fiscal. The consolidated profit after tax for the quarter stood at Rs.1302.000 Millions compared to Rs.246.000 Millions, during the same period last fiscal registering a growth of 429%. The operating profit during quarter ended September 2012 was Rs.2317.800 Millions compared to Rs.1126.700 Millions during the same period last fiscal.

The consolidated total income for the half year ended September 30, 2012 was Rs.15500.000 Millions as compared to Rs.10980.000 Millions in the corresponding period of the previous fiscal year, recording a growth of 41%. Consolidated disbursement during the first half year this fiscal was Rs.60640.000 Millions as compared to Rs.83920.000 Millions in the corresponding period last fiscal. The consolidated profit before tax for the first half year this fiscal stood at Rs.2052.300 Millions compared to Rs.1391.700 Millions during the same period last fiscal, a growth of 47%.

Commenting on the Q2 results, Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance Limited, said, “The Profit Before Tax for the second quarter and half year in FY 13 has shown a marked improvement in comparison to the earlier quarter. Our focus on the infrastructure sector and close client relationship has resulted in better performance. We believe that financial institutions operating in this space need to comprehend the operational hurdles while financing clients as the view necessarily, has to be long term. The biggest advantage with a rightly sculpted infrastructure project is that it will always pay back inspite of all hurdles. Our over two decades of experience has enabled us to identify the right projects to finance.”

Financials at a glance

Quarter and Half Year Ended September 30, 2012

	Quarter Ended			Half Year Ended
Rs. In Millions	30.09.2012	30.09.2011	Growth %	30.09. 2012	30.09. 2011	Growth %
AUM	325053.600	260014.500	25%	325053.600	260014.500	25%
Disbursements	23471.100	44013.900	-47%	60640.600	83915.800	-28%
Total Income	7881.600	5876.500	34%	15498.400	10984.800	41%
PBT	1580.700	495.300	219%	2052.300	1391.700	47%
PAT	1302.000	246.000	429%	1476.200	792.000	86%

Srei Infrastructure Business

Srei Project Finance Business continued on the growth trajectory with total outstanding portfolio reaching Rs.98820.000 Millions as on September 30, 2012 as compared to Rs.66940.000 Millions recorded during the same period last fiscal, an increase of 48%. Given the present business environment, the Project Finance team has been cautious and selective in making disbursements. The team has further strengthened its credit and risk management policy in evaluation of fresh proposals. In spite of the challenges, the team maintained the business momentum by offering a diverse range of financing solutions to its clients in various infrastructure segments like conventional power, port, oil and gas, road, airport, and SEZ industrial parks. Disbursement during the quarter ended September 30, 2012 was Rs.6480.000 Millions compared to Rs.17630.000 Millions during the corresponding period last fiscal.

Srei Equipment Finance Business, industry leader with 33% market share in infrastructure and construction equipment financing sector, has disbursed Rs.16180.000 Millions in this quarter as compared to Rs.26110.000 Millions in the corresponding period last fiscal with total Asset Under Management going up to Rs.185970.000 Millions as compared to Rs.153430.000 Millions during the same period last fiscal recording a growth of 21%. During the first six months of this fiscal, the vertical disbursed Rs.39530.000 Millions as compared to Rs.54530.000 Millions of corresponding period last fiscal.

Srei Project Development Business as a leading sponsor of PPP Business in the road sector in our country has a present portfolio of close to 5,500 lane km of Road with a total Capital Cost of over Rs.130000.000 Millions which is already commissioned or under implementation in consortium with reputed domestic and acclaimed international partners under the PPP framework. These projects are a diversified mix of annuity and toll-based projects and have been awarded by the National Highway Authority of India (NHAI) under National Highways Development Programme (NHDP), Ministry of Road Transport and Highways and various State Governments.

Srei Infrastructure Advisory Business has an in - principle approval for strategic tie with the Government of Sri Lanka, IT Department to act as Strategic Advisors for Hambantota IT Park and assist the authorities from concept to commissioning. The division has bagged tourism consultancy assignments for four states and a UT (West Bengal, Andaman, Orissa, Andhra Pradesh, Maharashtra) as State Level Project Management Advisors to set up PMU’s in State Tourism Departments – sponsored by Ministry of Tourism, GOI. Srei Advisory is currently providing techno - commercial consultancy support to International clients.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.20
UK Pound	1	Rs.87.00
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.