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8/8/2019 Srei Corporate Profile_May 2010
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SREI INFRASTRUCTURE FINANCE LIMITED
Corporate Profile
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Sa fe Ha rb o urSa fe Ha rb o ur
In this communication we have disclosed forward-looking information to enable investors to comprehend ourprospects and take informed investment decisions. This report and other statements written and oral - that weperiodically make contain forward-looking statements that set out anticipated results based on the managements
.anticipate, estimate, expects, projects, intends, plans, believes, and words of similar substance inconnection with any discussion of future performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been. ,
assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions proveinaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear
this in mind.e un erta e no o gat on to pu c y up ate any orwar - oo ng statement, w et er as a resu t o new
information, future events or otherwise.
The information contained herein has been prepared solely for information purposes and is not an offer orsolicitation of an offer to buy/sell the securities/instruments mentioned or to participate in any trading strategy or an
official confirmation.
This is not a research but it may refer to a research analyst/research report. The Company does not represent thatthe information contained herein is accurate or complete. Information is subject to change without notice and wemay not update this. Past performance is not indicative of future returns. This price information (if any) is provided
solely for informational purposes and may differ substantially from price information available from other sources oran actionable price.
Exchange Rate : 1 USD = INR 46
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India: A Fast Emerging Economy
Searin economic rowth.
Post 1991-92, the Indian economy has been one of thefastest growing in the world
Indian GDP
Worlds No. 2 emerging market economyby GDP after China
9.4 ercent in 2005-06
9.6 percent in 2006-07,9.0 percent in 2007-08 and6.7 percent in 2008-09 despite economic
slowdownEstimated GDP growth of 7.2% in FY108.5% & 9% growth estimated for FY11 and FY12 respectively
Source: Economist Intelligence Unit, November 2006
Approximately USD 276 billion of Forex Reserves as on May 2010*
India's FDI inflows touched USD 35 billion in 2008-09 whereas FDI inflows since
33
Source :
Reserve Bank of India
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Indian Infrastructure Market
During the Twelfth Five Year Plan, the total investment in Indias infrastructureuring the Twelfth Five Year Plan, the total investment in Indias infrastructuresector is estimated to beector is estimated to be INR 40,992 billion (USD 1,025 billion)INR 40,992 billion (USD 1,025 billion) ##
e even an a es ma e a we wou nee o nves over s. a crore n
infrastructure over the five year period. This was more than double the realised investmentduring the Tenth Plan period. The Plan also recognised that such a large investment ininfrastructure could not be funded from public resources aloneThe strategy forinfrastructure develo ment therefore involved combination of ublic investmentsupplemented by private investments where feasible.
Dr. Manmohan Singh, Hon'ble Prime Minister of India
The Eleventh Plan had estimated an investment of over INR 20,542INR 20,542 bnbn (USD 514(USD 514 bnbn))
Investment in Infrastructure based on sectoral analysis #
# Source: infrastructure.gov.in
Gas Storage Airports Ports Water Supply &
SanitationRailwaysIrrigation Telecom Roads Power
44
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Infrastructure thrust by the Government
Power Ports AirportRoads
investment opportunityof USD 7.74 bn
Investment need ofabout Rs 177 bn USD
investment opportunityof USD 22 bn
Capacity addition of 485mn MT in Ma or Ports
investment opportunityof USD 166.63 bn
GOIs Vision Power forAll b 2012
investment opportunityof USD 78.54 bn
6 laning 6,500 km of GQand selected National
4.31bn) formodernisation andredevelopment of 4metro and 35 non metroair orts
and, 345 mn MT in MinorPorts envisaged
Formulated NationalMaritime Development
Hydel power potential of150,000 MW remainsuntapped
Capacity addition of
Highways
4 laning 6,736 km on N-S
& E-W corridors &12,109 km of National
16 greenfield airportsapproved
Rs 45 bn (USD 1.09bn)re uired for u radin
o cy a an es ma einvestment of USD 11.33bn
Under NMDP, 276ro ects identified for
about 78,577 MW and aninvestment of USD 76.34bn targeted during XIthFive Year Plan
g ways
Constructing1,29,707km of new ruralroads, and renewing andu radin existin
CNS-ATM and otherequipment
development of MajorPorts
Mega Power Projects (of4000 MW generationcapacity each) proposed
1,77,726 km
Launched the ambitiousNational HighwayDevelopmentProgramme (NHDP)involving a USD 54.1 bn
investment upto 2012
55
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Infrastructure thrust by the Government
Telecom UrbanInfrastructure MiningRailways
.opportunity in miningequipment duringEleventh Five year plan.
Coal reserves of 20 bn
National Urban RenewalMission (JNNURM) 461projects worth Rs 494.22bn sanctioned
expected to reach 600mn with 200 mn ruraltelephone connections
Pro ected rowth 40%
.needed for constructionof Dedicated FreightCorridors including thetwo projects between
tonnes to be de-blockedfor power projects
100% FDI allowed onautomatic route for coal
MRTS for the 6 metrosand BRTS for 9 smallercities planned underJNNURM
p.a. in next few years
Total investment
projected at Rs 3,141 bn(USD 76.6 bn) of which
um a - e anLudhiana-Kolkata
Plan for 10,300 km ofnew railway lines and
au e conversion of gn e m n ng orcaptive consumption iniron, steel & cementproduction
o a nves men nWater Supply andSanitation projected tobe Rs 2,342 bn (USD57.14 bn)
expec e romprivate sector
Over 150% growth intelecom services is
ro ected in 5 ears
over 10,000 km
Overall Rs 476 bn (USD11.6bn) expected to beinvested by private
requiring largeinvestments in networkinfrastructure
sector out o t e totainvestment need of Rs3,035 bn (USD 74 bn)including MRTS
66
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Vision and Mission Statement
Vision
To be the most inspiring global holistic
Mission
To be an Indian multinational companyproviding innovative integrated
infrastructure solutions
77
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History
Started operations and identified infrastructure sector as the core1989
Initial Public Offering. Listed on all major Stock Exchanges1992
IFC, FMO and DEG invested as strategic equity partners1997
1st Indian NBFI to be listed on the London Stock Exchange2005
JV with BNP Paribas Lease Group, 100% subsidiary of BNP Paribas2008
88
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Board of Directors
NAME PREVIOUS EXPERIENCE
Salil Gupta, Chairman, West Bengal Industrial Development Corp.,
Hemant Kanoria,Chairman & Managing Director President, Calcutta Chamber of CommerceChairman, CII (ER) Infrastructure
Sunil Kanoria, Presently Vice Chairman & Managing Director of Quippo InfrastructureEquipment Ltd.
Saud Siddique,
Jt. Managing Director
Former IFC (World Bank, Washington) , Principal Investment Officer and
East Asia head having vast experience in infrastructure sector. . ,
Wholetime Director
having more than 20 yrs experience in Infrastructure & Core sector
Dr. S.C. JhaChief Economist and Director, Asian Development BankEconomic Advisor to the United NationsMember Prime Ministers Council of Economic Advisors
V.H. Pandya Senior Executive Director, SEBIDirector, GIC Asset Management and Reliance CapitalS. Rajagopal CMD, Bank of India & Indian Bank
Daljit Mirchandani ,Executive Director, Kirloskar Oil Engines
S. Chatterjee Executive Director, Axis Bank99
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Our Presence
St Petersburg
Krasnodar
Moscow
Branch & Field Offices
Regional Offices
Head Office
58
9
1
SingaporeMauritius
1010
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Business Verticals
g n d u r e u r e a r k
s
m e n
t B a n
k i
c t A d v
i s o r
C a p
i t a
l / F
n a g e m e n
t
I n
f r a s
t r u c
s p o r t a
t i o n
P o w e r
I n
f r a s
t r u c
t
p o
R e n
t a l s
I n d u s
t r i a l
u i p m e n
t
i n a n c
i n g
P r o
j e c
t
i n a n c
i n g
I n v e s
t
P r o j
V e n
t u r
M
T e
l e c o T r
a
R u r a l
I Q u i
S E Z a n
d E F F
Srei has added business lines such as Telecom Infrastructure and Quippo Rentals through the amalgamationof QIEL
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Equipment Financing
Financing Insurance Broking
Construction, Mining, Oil & Gas,
Power (conventional & renewable),
Life,
Non Life,
Ports, Railways, Aviation, Telecom Reinsurance
Financial Snapshot as on 31 st March 2010
Net Worth (Rs mn.) 9,660Asset Under Management (Rs mn.) 85,650NIM (%) 4.89 %
1212
CAR 17.97%
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Project Financing
Business Overview
Roads Aviation
Ports Telecommunication
Railways Oil & Gas
Financial Snapshot as on 31 st March 2010
Net Worth (Rs mn.) 7,901Asset Under Management (Rs mn.) 44,448NIM (%) 4.70%
-
1313
CAR 21.98%
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Advisory Services
Project conceptualization & Pre-feasibility studiesProject Advisory
Project MonitoringInvestment Banking Debt Syndication Equity Syndication Mergers, Acquisitions & Valuations
Fund Management (Venture Fund)
Financial Snapshot as on 31 st March 2010
Fee Based Income (Rs mn.) 485
1414
Funds Under Management (Rs mn.) 4,821
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Infrastructure Investments
Overview
nvo ve n ro ec eve opmen s nce as co-sponsors
Development of BOT or Annuity based projects in the sectors like Roads, Power,, , ,
Identify viableprojects under
Bid inConsortium
Support thepartner in
debt Creating
BOT / Annuitymodel partners forthe projects syndication &projectfinancing
SPV
1515
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Infrastructure Investments
SECTOR TOTAL
Fig in Rs Mn
Transportation 2,430
Passive Infrastructure - Telecom 2,590
Port 19
SEZ & Industrial Parks 40
Rural Infrastructure 5
Total* 5,234
1616* Investments held directly or through funds
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Investments in Road Projects
Project Information Under Implementation/Operational Total ProjectCost (Rs. mn) JV Partner/ sSrei's
Holding
4/6 Laning of Bharatpur Mahua, NH-11, Rajasthan 2,979 Madhucon ProjectsLimited 15%
4/6 Laning of Thrissur Angamali, NH47, Kerala 5,650 KMC 49%
4 laning of Madurai Tuticorin, NH-45B, Tamil Nadu 9,200Madhucon Projects
Limited & MadhuconGranites Limited
26%
4 laning of Lakhnadon, NH-7, -Madhya Pradesh /Maharashtra Border 4,891 Sadbhav Engineering 49%
4 Laning of Jaora Nayagaon, Section SH-31, Madhya Pradesh 8,490PNC & SubhasProjects & VIVA
Infrastructure28%
4 laning of Indore Ujjain Road, on SH-27 in Madhya Pradesh 3,417 Galfar and Varaha 48%
4/6 Laning of Gaziabad-Aligarh Section of NH 91 in Uttar Pradesh, 20,180PNC & GalfarEngineering &
Contracting SAOG39%
4 Laning of Rohtak-Bawal section of NH-71 in Haryana 10,500 JMC 49%
TOTAL 65,307Project Information Recently Awarded (LOA Received) Total ProjectCost (Rs. mn) JV Partner/ s
Srei'sHolding
2/4 Laning of Rimuli-Roxy-Rajamunda Section of NH 215 in Orissa 9,000 MBL Infra 50%
1717
an ng o ampur am an sect on o - n ammu as m r , a ar tw
6 Laning of Chandikhole Bhubaneswar Section of NH-5 in Orissa 18,270 Galfar & Simplex 48%
TOTAL 42,270
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Rural IT InfrastructureSrei Sahaj e-Village Limited
A Public Private Partnership to bridge the urban-rural digital divide in India
Settin u Common Service Centres CSCs to offer the followin services:e-governance : Land Records, Registration & Revenue Collection, Electoral Services,
Employment Exchange, Passport, Ration Card, IT Return and otherGovernment Services
e-commerce : B2B and B2C Services (including financial services)
e-learning : Computer Training, Distance English Education, Tuitions / Vocational coursesand other related courses
About 28,000 CSCs in six states:est enga , ttar ra es , ar, ssam, am a u an r ssa
Creating about 28,000 Village Level Entrepreneurs (VLEs)
Direct employment of ~ 84,000 persons (Average of three persons per centre)
Population coverage:300 mn (37% of Indias rural population, 29% of Indias population)*
Technolo artners:Wipro, Oracle, Intel, RedHat and Hughes
1818*Source: based on Press Information Bureau, Report on Rural Development
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Telecom Infrastructure Business
Quippo Telecom Infrastructure Limited (QTIL) owns and operates the telecom tower business ofthe Group
In Januar 2009 QTIL and Tata Grou announced an amal amation and artnershi under which:
QTIL and its shareholders would purchase stake in Tata Group company Wireless TTInfoservices Limited WTTIL) from existing shareholders : This was completed in August 2009
, , ,shares in WTTIL would be issued to shareholders of QTIL as consideration
The scheme on the merger has been filed with respective high court(s) and pendingnecessary approvals. The Appointed Date for the merger is 1 st April 2009
As of 31 st March 2010, the two companies are expected to have a combined portfolio of~37000 towers with tenancies of more than 2.0x
,be approx 9%, and which, combined with Sreis holding in WTTIL, would amount to approx 11.50%stake in WTTIL. Total asset size as on March 2010 is estimated to be Rs 92,300 mn
Estimated term loans and borrowings is Rs 55,810 mn as on March 2010
As on 31 st March 2010 total revenues estimated to be Rs 17,000 mn and projected EBITDA is Rs
9000 mn1919
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Construction Equipment Rental Business
Provides construction equipment rental services, along with trained and qualified operatingpersonnel to customers
L&T Finance Limited, which also operates in a similar field in four southern states i.e. TamilNadu, Andhra Pradesh, Karnataka and Kerala.
Has a fleet size of ~700 equipment across 7 locations in India, including earthmoving andgeneral construction equipment, soil improvement equipment, road construction equipment,concrete equipment, transport equipment and lifting equipment
The business is in a consolidation phase changing its focus from low value retail assets tohi h value assets which is ex ected to drive revenue and EBITDA mar in rowth oin
Financial Snapshot of FY 10*Details In Rs Mn
forward.
Revenue 398EBITDA 74Asset Base 2,897
Debt 1 792
2020
* Provisional
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Energy Rental Business
The business relates to renting of power generation equipment and heat recovery add-onequipment to SME customers.
Value proposition driven by alternative to "buy" in the area of gas based power generationto users by putting together containerized equipment to generate power, heat and coolingsolutions driving reliability and innovation on a 24/7 basis
In addition to equipment, QEPL also provides access to know-how and support through iton-ground personnel who operate the equipment.
Financial Snapshot of FY 10*Details In Rs mnRevenue 317
EBITDA 194Asset Base 1058
Debt 642
2121
* Provisional
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Oil & Gas Infrastructure Business
QOGIL, directly and through subsidiaries and JVs, operates 4 oil rigs and 1 barge (bargeheld through a JV, Quippo Prakash Pvt. Ltd. (QPPL) in which QIEL has an effective stake of
. - ,
operating personnel and know-how
QPPL has an expected total asset base of ~ USD 122 mn as of FY2010E (with loans of ~mn
QOGIL has been awarded an Oil Block CB-ONN-2005/11 (NELP VII Round) for explorationand production in Cambay Basin, Gujarat.
Financial Snapshot of FY 10*
Details In Rs mnRevenue 354
EBITDA 68
Debt 672
2222* Provisional
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Valuation & Asset Disposal Business
Is a 50:50 joint venture with GoIndustry (UK), Ltd.
Auction services for disposal of construction equipment, commercial vehicles andpassenger cars; also offers services for valuation of construction equipment and
Auction services for disposal of all other equipment and tools including machine
tools, textiles machinery, food processing equipment etc.Consulting services for valuation and appraisal of above assets, assetmanagement, market commentary etc. for clients
The JV has an e uit base of INR 2 mn and is a fee based business with rovisional
Revenue of INR 32 mn at the end of March 31, 2010.
2323
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Special Economic Zones
Engineering SEZ, Mumbai
development of Engineering SEZ.
It currently owns (approx) 220 acres of SEZ land which is located on Alibaug-Mumbai Road.
Expected to be developed by 2011.
Project specific SPV, set up in partnership with West Bengal Industrial InfrastructureDevelopment Corporation (WBIIDC) for the development of Integrated Industrial Park atKhara ur West Ben al
Industrial Park to focus on automotive industry and related engineering and capital goods
Total project area of 500 acres (Phase I & II)
2424
Part of Park designated as SEZ for which necessary approvals are obtained from Ministry ofCommerce and State Government
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Synergistic IntegrationSrei +Quippo
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QUIPPO
W orld
e c o m One of the
largest G a s Provides
state-o- c t i o n Provides
equipment on e n t a l
Provides eco-friendly gas- p o
s a
l Provides
online &
Q u
i p p o
T e
l n epen -ent tower company in
the world Q u i p p o
O i l
the-artdrillingequipmentalong with p o
C o n s
t r rentalsalongwithtrained,
qualified & p o E n e r g y based power
solutions for short to
medium term
& A
s s e
t D i s offline
auctioning &disposal
service for 37,000 #telecomtowers
qualifiedoperators Q
u i
operators Q u
i p -basedcombinedheat solutions V a
l u a
t i o n
machinery
Indias 1st Equipment Indias 1st EnergyIndias 1st Tower Indias 1st IntegratedIndias 1st
ComprehensiveRental Company Rental CompanyRental Company Rig Rental Services Equipment & Industrial
Valuer
# 31 st March10
2626
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QIEL An Overview
QIEL primarily acts as the holding company for Quippo Groups businesses ininfrastructure equipment space.
QIEL business structure
2727
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Synergistic Integration Srei+Quippo
#1Creation of a fully integrated and Holistic Infrastructure Institution bringing all infrastructure businessunder one umbrella equipment financing, project financing, advisory, development and Quipposinfrastructure business
#2 Enhancement of shareholder value
#3#3 Expanded spectrum of infrastructure products & services to customers
#4#4 Wider service portfolio leading to increased degree of business de-risking
#5#5 Create an efficient and functional structure for the businesses, reducing operational costs therebyincreasing profitability
Higher Net Worth to capitalise on future growth potential#6
2828
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Transaction Details
Srei Infrastructure Finance Limited (Srei) is proposing an amalgamation of QuippoInfrastructure Equipment Limited (QIEL) to create a single focused entity to capitalize on the
The consideration to the shareholders of QIEL would be through issue of shares in Srei. Advisors KPMG and BDO Haribhakti have, after due analysis, arrived at a share swap ratio of 3:2,
i.e., 3 shares of Srei to be issued for every 2 shares held in QIEL. ICICI Securities has furtherprovided a fairness opinion certifying this ratio to be fair.
Further, Srei proposes to make a bonus issue of 4 equity shares for every 5 equity shares held inthe company by its shareholders, as on the Record Date under the Scheme of Amalgamation. Thebonus shares will be issued to shareholders of Srei prior to Amalgamation. The swap ratio will beadjusted accordingly.
Share issue workings:
Srei Current Shares Outstanding 116 mn
QIEL Expected Shares Outstanding* 109 mnSrei shares outstanding post bonus 209 mnNew issuance at Srei expected due to amalgamation (adjusted swap post bonus) 294 mnSrei shares outstanding post amalgamation, post-bonus 503 mn
* Post conversion of convertible debentures into2.05 mn equity shares in QIEL
2929
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FINANCIALS
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Financial Highlights
Rs Million FY10 FY09 FY08 FY07
Srei Infrastructure Finance Limited (Consolidated)
o a ncome , , , ,Profit Before Tax 2,177 1,049 1,528 913Profit After Tax 1,568 826 1,347 846Net Worth 12,792 11,406 7,166 4,999
, , , ,Book Value (Rs.) 110.14 98.20 65.78 45.88
Disbursement 90.168 66,200 57,369 43,045
Total Asset Under Management 1,32,651 1,00,964 82,319 51,498
Rs Million FY10 FY09 FY08 FY07
Total Income 4,701 3,264 5,275 4,001Profit Before Tax 1 481 504 1 133 858
Profit After Tax 1,115 504 1080 793Dividend Rate 12% 10.0% 12.0% 10.0%Net Worth 7,901 6,949 6,581 4,710Borrowings 35,433 13,426 8,942 33,035
3131
Book Value (Rs.) 68.03 59.83 56.66 43.23Disbursement 30,132 11,010 38,843 43,045Total Asset Under Management 44,448 20,770 16,621 50,825
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Ratio Analysis
FY10 FY09 FY08 FY07
Srei Infrastructure Finance Limited (Consolidated)
Return on Average Net worth 12.96% 8.89% 22.15% 24.45%
Return on Average Assets 2.27% 1.35% 2.53% 2.66%Net Interest. Margin 4.87% 3.10% 3.84% 5.70%
EPS (Rs) 13.42 7.07 12.18 7.76Price Earning Ratio 5.11 7.64 13.83 7.09
Gross NPA (as per FLI) 1.64% 1.33% 1.01% 0.93%Net NPA (As per FLI) 1.02% 0.47% 0.28% 0.19%
FY10 FY09 FY08 FY07Return on Average Net worth 15.02% 7.44% 19.12% 18.10%
Srei Infrastructure Finance Limited (Standalone)
e urn on verage sse s . . . .Net Interest. Margin 4.70% 1.20% 4.80% 5.67%
EPS (Rs) 9.60 4.34 9.91 7.27Price Earning Ratio 7.17 12.45 17.01 7.56
3232
. . . .Gross NPA (as per FLI) - - - 0.95%Net NPA (As per FLI) - - - 0.19%
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Thank You
Srei Infrastructure Finance LimitedVISHWAKARMA
Phone: +91 33 3988-7734
Fax: +91 33 2285 7542 / 8501
86C, Topsia Road (South),
Kolkata 700 046, INDIA
corporate@srei.com
www.srei.com
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