Rail Vikas Nigam Ltd Auditor Reports

TO THE MEMBERS OF RAIL VIKAS NIGAM LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of RAIL VIKAS NIGAM LIMITED, (hereinafter referred to as "the Company"), which comprise of the Standalone Balance Sheet as at 31 March 2025, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2025, its profit including other comprehensive income, changes in equity, and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw your attention to the following matters:

a. The Company usually receives advance payment from Joint Venture Companies for incurring expenditure on their projects. However, in the case of one joint venture company i.e. Krishnapatnam Railway Company Limited (KRCL), the Company is incurring project expenditure on a regular basis, but nominal amount has been received from KRCL during the year and the total amount receivable from KRCL as on 31 March 2025 is Rs.1355.72 crore which includes Rs. 889.95 crore on account of Interest on delayed payment. The application of interest has been changed from compound to simple w.e.f 1st October 2024, whereas KRCL requested for application of simple interest w.e.f. 01.04.2020 in lieu of compounding interest. The matter is pending with the Board of Directors of the Company and adjustment if any will be recognized as and when the matter is finalized. (refer note nos. 11.1, 11.6 & 46 to the standalone financial statements).

b. In view of the representation made by one of the Joint Venture Company KRCL for waiver of departmental charges and pending decision by the Board of Directors of the Holding Company, the claim for departmental charges@ 5% of the completion cost of the project has not been raised on KRCL by the Company. Also during the year the methodology of application of interest has been changed from compound to simple we.f. 1st October 2024 in case of KRCL.(refer note no. 46 to the standalone financial statements).

c. Balances of some of the Trade Receivables, Other Assets, Trade and Other Payable accounts are subject to confirmation/ reconciliation from the respective parties. The management does not expect to have any material differences affecting the financial statements for the year ended 31March 2025 (refer note no. 52 to the standalone financial statements).

Our opinion is not modified in respect of the matters mentioned in the above paragraphs.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. Key Audit Matter No.	How our audit addressed the Key Audit Matter
1. Revenue Recognition in terms of Ind AS 115 “Revenue from Contracts with Customers”
Accounting Standard on Revenue which prescribes five steps revenue recognition model.The Company recognizes revenue for a performance obligation satisfied over time after estimating its progress towards complete satisfaction of the performance obligation. There are significant accounting judgements in estimating revenue to be recognised on contracts with customers, including estimation of costs to complete. The Company recognises revenue on the basis of stage of completion in proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract at completion. The recognition of revenue is therefore dependent on estimates in relation to the total estimated costs of each such contract.During order fulfilment, contractual obligations may need to be reassessed. In addition, change orders or cancellations have to be considered. As a result, total estimated project costs may exceed total contract revenues and therefore require immediate recognition ofthe expected loss. Ind AS 115 requires entities to exercise judgement, taking into consideration all the relevant facts and circumstances when applying each step of the model to contracts with their customers. The application of the revenue accounting standard involves certain key judgements relating to -	Our audit procedures included considering the appropriateness of the Companys revenue recognition accounting policies and assessing compliance with the policies in terms of the applicable accounting standards. We evaluated the effectiveness of control over the preparation of information that are designed to ensure completeness and accuracy. We selected a sample of contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and satisfaction of performance obligations. We also examined costs incurred vis a vis the estimated cost to complete the contract and tested their recoverability by comparing the same with the contract revenue.
i. identification of distinct performance obligations.	We performed following substantive procedures over revenue recognition with specific focus on whether there is single performance obligation or multiple performance obligations in the contract and whether the performance obligation is being satisfied over the period of time or at a point in time:
ii. determination of transaction price of the identified performance obligations.	Read, analyzed and identified the distinct performance obligations in these contracts.
iii. the appropriateness of the basis used to measure revenue recognized at a point in time or over time.	Compared these performance obligations with that identified and recorded by the Company.
Additionally, the revenue accounting standard contains disclosures which involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. Revenue recognition from these judgements were identified as a Key Audit Matter and required a higher extent of audit effort.	Considered the terms of the contracts to verify the transaction price used to allocate to separate performance obligations.
Refer Note no. 2.10 to the Standalone Ind AS Financial Statements.	Checked whether the performance obligation is being satisfied over the period of time or at a point in time.
	Performed analytical procedures for reasonableness of revenues disclosed
2. Provisions and Contingent liabilities relating to ongoing litigations	Our audit procedures included, but were not limited to the following:
The Company is subject to a number of legal, arbitration and tax cases for which final outcome cannot be easily predicted and which could potentially result in significant liabilities.	• Obtained understanding of the process of identification and measurement of provisions and contingent liabilities relating to ongoing litigation implemented by the Management, through various discussions held with Companys finance personnel.
The assessment of whether liability is recognised as a provision or disclosed as a contingent liability in the standalone financial statements is inherently subjective and requires significant management judgement in determination of the cash outflows from the business, interpretation of applicable laws and regulations, and careful examination of pending assessments at various levels.	• Tested the design and operating effectiveness of the controls put in place by the management in relation to assessment of the outcome of the pending litigations.
Since the amounts involved are significant and due to the range of possible outcomes leading to high estimation uncertainty that requires significant management and auditor judgement, this matter is considered to be a key audit matter for the current year audit.	• Inspected the summary of litigation matters and discussed key developments during the year with the Companys Finance personnel.
Refer Note no. 38 to the Standalone Ind AS Financial Statements read with accounting policy 2.17 & 2.18.	• Inspected and evaluated, where applicable, external legal and/or regulatory advice sought by the Company.
	• Discussed and challenged the managements assessment of the likelihood, magnitude and accounting of any liability that may arise in certain material cases. Accordingly, we reviewed the amount of provisions recognized and contingent liabilities disclosed in the standalone financial statements and exercised our professional judgement to assess the appropriateness of such conclusions, involving experts as required.
	• Evaluated the adequacy of disclosures made in the Companys standalone financial statements in accordance with the applicable accounting standards.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Directors Report including Annexures to Directors Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the consolidated financial statements, standalone financial statements and our auditors report thereon. The annual report is expected to be made available to us after the date of this auditors report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available to us and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated.

When we read such other information as and when made available to us and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure, and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatement that, individually or in aggregate, makes its probable that the economic decisions of a reasonably acknowledgeable user of the statement may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the statement.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

1. The standalone audited financial statements for the year ended 31 March 2024 were audited by the previous auditors and they had expressed an unmodified opinion on standalone audited financial statements vide their report dated 17th May 2024.

Our opinion is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, we give in “Annexure A”, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.

2. As required by Comptroller and Auditor General of India through directions/sub- directions issued under Section 143(5) of the Companies Act 2013, on the basis of written representation received from the management, we give our report on the matter specified in the “Annexure -B” attached.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including the Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;

(e) Pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Act are not applicable to the Company, being a Government Company;

(f) We are enclosing herewith a report in “Annexure - C” for our opinion on adequacy of internal financial controls system in place in the Company and the operating effectiveness of such controls;

(g) Pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of Section 197 of the Companies Act, 2013, are not applicable to the Company, being a Government Company; and

(h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 38 to the standalone financial statements;

ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards for material foreseeable losses, if any, and to the extent ascertained on long-term contracts Refer Note no. 17 to the Standalone Ind AS Financial Statements. The Company did not have any derivative contracts.

iii. There was no amount which was required to be transferred to the Investor Education and Protection Fund by the Company.

iv. a). The Management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub- clause (i) and (ii) of Rule 11(e) contain any material misstatement.

v. a) The final dividend proposed in the previous year, declared and paid by the company during the year is in accordance with Section 123 of the Act to the extent applicable.

b) As stated in Note 30 to the accompanying standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, to the extent applicable

vi. Based on our examination which included test checks, for the financial year ended March 31, 2025, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention.

Annexure - A To The Independent Auditors Report

Referred to in paragraph 1 to “Report on Other legal and regulatory requirements” of the Independent Auditors Report of even date to the members of RAIL VIKAS NIGAM LIMITED on the Standalone Financial Statements for the year ended 31 March 2025.

i) a) A. The Company has generally maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment and Investment property.

B. The Company has generally maintained proper records showing full particulars of Intangible assets.

b) The Company is having a regular program of physical verification of all Property, Plant and Equipment having substantial value, every year, other than held at the residence of employees, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its business. In our opinion and as per information and explanation given by the management, the discrepancies observed were not material and have been appropriately accounted for in the books.

c) According to the information and explanations given to us and on the basis of our examination of records of the company, we report that, the title/ lease deed of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statement included under Property, plant and equipment is executed in the name of the Company as at the balance sheet date except as detailed in Appendix A attached.

d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year. Accordingly, the provisions of clause 3(i)(d) of the Order are not applicable.

e) According to the information and explanations given to us, there are no proceedings which have been initiated or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii) a) The Company is primarily in the business of implementing railway infrastructure projects and as per information and explanation given to us the company is not carrying inventory as per practice and hence reporting under clause 3(ii)(a) of the Order is not applicable.

b) The Company has not been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, at any point of time during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.

iii) The Company has made investments in, provided guarantee and given unsecured loan to subsidiaries, joint venture and associated during the year in respect of

a) A. As per information and explanation given to us, the company has stood guarantee to Joint Venture during the year and has given loans to Subsidiaries as per following details:- Amounts in crores

Particulars	Guarantee	Security	Loans	Advances in the nature of Loans
Aggregate amount granted/ provided during the year
- Subsidiaries	Nil	21.79	0.80	Nil
- Joint Ventures	Nil	Nil	Nil	Nil
- Associates	282.50	Nil	Nil	Nil
-Others	Nil	Nil	Nil	Nil
Balance outstanding as at balance sheet date in respect of above cases
- Subsidiaries	Nil	21.79	.007	-
- Joint Ventures	Nil	16.52	-	-
- Associates	282.50	Nil	-	-
-Others	Nil	Nil	-	-

B. Since the company has not provided any loans or provided advances in the nature of loans, or stood guarantee, or provided security to parties other than subsidiaries, joint ventures and associates, and hence, the relevant clause is not applicable.

b) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that the investments made, guarantees provided and the terms and conditions of loans and guarantees provided by the company are, prima facie, not prejudicial to the companys interest.

c) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that in respect of loans, the schedule of repayment of the principal and payment of interest has been stipulated, and the receipt of interest is regular, where it is due. For repayment of principal, moratorium has been given, and no repayment is due during the year.

d) According to the information and explanations given to us and based on the audit procedures performed by us, no amount of loan is overdue for a period of more than 90 days.

e) There is no loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to same parties.

f) The Company has granted loans or advances in the nature of loan to its two subsidiaries either repayable on demand or without specifying any terms or period of repayment as per the detail there under:

Particular	All	Promoters parties	Related Parties
Aggregate amount of loans/
advances in nature ofloans :-	-	-	-
Repayable on demand (A)	-	-	-
Agreement does not specify any terms or period ofrepayment (B)	-	-	0.80
Total (A+B)	-	-	0.80
Percentage of loans/advances in nature of loans to the total loans	-	-	##

##Majority of the loans have been repaid during the year.

iv) According to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of Companies Act 2013 in respect of loans, investment, guarantee and security granted during the year.

v) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits or the amount which deemed to be deposits. As such, the directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder are not applicable to the Company. No order has been passed with respect to Section 73 to 76, by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, in respect Road & Infrastructure projects of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records with a view to determine whether they are accurate or complete.

vii) a) On the basis of the records of the Company examined by us, in our opinion the Company is generally regular in depositing of undisputed statutory dues including Goods and Service Tax, Provident Fund, Income Tax, Sales Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with appropriate authorities. The provisions of Employees State Insurance Act are not applicable to the company. According to information and explanation given to us , no undisputed amounts payable in respect of aforesaid statutory dues were outstanding as at 31 March 2025 for a period of more than six months from the date they became payable.

b) According to records of the Company and information and explanation given to us by the Companywhere statutory dues referred to in sub-clause (a) have not been deposited on account of any dispute, or deposited under protest then the amounts involved and the forum where dispute is pending are given below:

Name of the Statute	Nature of the Dues	Period to which the amount relates	Forum where dispute is pending	Gross disputed amount (‘incrores) Amount deposited under protest/ appeal	Amount deposited under protest/ appeal (‘incrores)	Amount not deposited (‘incrores)
Income Tax Act, 1961	Income Tax	A. Y. 2018-19	CIT (A)	0.02	0	28.00
		A. Y. 2022-23	A.O.	27.98	0
Finance Act, 1994	Service Tax / Penalty	F. Y. 2012-13 to F. Y. 2017-18	CESTAT, New Delhi	279.46	0	279.46
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Additional Commissioner (Appeal) State Kota- Rajasthan	T>2.99	0.13	2.85
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Joint Commissioner of Commercial taxes - Appeal -1 Bangaluru - Karnataka	44.17	2.01	42.16
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Special Commissioner Dept. Of Trade & Taxes, Delhi State - Delhi.	13.95	0.66	13.28
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Special Commissioner Dept. Of Trade & Taxes, Delhi State - Delhi.	4.86	0.23	4.63
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Joint Commissioner of Commercial taxes-Appeal -1 Bangaluru - Karnataka	6.70	0.20	6.50
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Additional Commissioner (Appeal) State Ambala - Haryana	4.34	0.21	4.13
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Additional Commissioner (Appeal) State Kota- Rajasthan	1.38	0.07	1.32
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Additional Commissioner (Appeal) State Chennai - Tamil Nadu	4.65	0.15	4.50
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Central Appellate Authority, Guwahati, Assam	0.24	0.02	0.22
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	State Appellate Authority, Lucknow, UP	8.61	0.78	7.83
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	State Appellate Authority, Ward 208, Zone 11, Delhi	7.74	0.40	7.34
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	State Appellate Authority Circle-D, Kota, Rajasthan	4.66	0.24	4.41
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	State Appellate Authority Rishikesh - Sector, Dehradun, UK	20.41	1.86	18.55
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	State Appellate Authority, AMBETHAN_502, PUNE_ WEST, Maharashtra	1.45	0.07	1.38
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	State Appellate Authority, Tamilnadan	16.92	0.97	15.95
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	6.06	0.71	5.35
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	Appeal filed on 06/05/2025	17.68	0.94	16.74
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal filed on 02/05/2025	0.08	0	0.08
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal yet to be filed with GSTAT	5.39	0.71	4.69
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal yet to be filed with GSTAT	2.22	0.44	1.77
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	5.58	0.00	5.58
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal Withdrawn& opted for Amnesty.#	0.93	0.00	0.93
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal Withdrawn& opted for Amnesty.#	0.16	0.00	0.16
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	0.04	0.00	0.04
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal Withdrawn& opted for Amnesty.#	0.16	0.00	0.16
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal Withdrawn& opted for Amnesty.#	0.14	0.00	0.14
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2017-18	Appeal Withdrawn& opted for Amnesty.#	0.05	0.00	0.05
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	0.09	0.00	0.09
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	0.38	0.00	0.38
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	0.06	0.00	0.07
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	Appeal Withdrawn& opted for Amnesty.#	0.10	0.00	0.10
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	Appeal Withdrawn& opted for Amnesty.#	1.11	0.00	1.11
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal Withdrawn& opted for Amnesty.#	0.11	0.00	0.11
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	1.14	0.00	1.14
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	0.00	0.00	0.00
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	0.18	0.00	0.18
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	1.49	0.00	1.49
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	0.02	0.00	0.02
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2021-22	Appeal is pending for filing.	0.82	0.00	0.82
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	0.24	0.00	0.24
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	29.67	0.00	29.67
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2020-21	Appeal is pending for filing.	0.26	0.00	0.26
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2019-20	Appeal is pending for filing.	22.63	0.00	22.63
Goods & Services Tax Act, 2017	GST / Interest/ Penalty	2018-19	Appeal is pending for filing.	4.73	0.00	4.73
			Total	552.05	10.8	541.25

# Company has withdrawn appeal and filed for amnesty scheme and the same has not been approved as pertaining to interest and penalty demand & the same has been considered as disputed demand.

viii) In our opinion and according to the information and explanations given to us, the Company has not surrendered or disclosed as income, any transaction not recorded in the books of accounts, during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, the provisions of clause 3(viii) of the Order are not applicable.

ix) a) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the Company has not been declared a willful defaulter by any bank or financial institution or other lender.

c) In our opinion, and according to the information and explanations given to us, the company has not raised/ utilized any term loan during the year and hence reporting under clause 3(ix)(c) of the order is not applicable.

d) According to the information and explanations given to us and an overall examination of the financial statement of the Company, we reported that the company has not raised any short- term funds during the year and hence reporting under clause 3(ix)(d) of the order is not applicable.

e) According to the information and explanations given to us and on an overall examination of the financial statements of the company, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries and joint ventures.

f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries and joint ventures.

x) a) In our opinion, and according to the information and explanations given to us, the Company did not raise money by way of an initial public offer or further public offer (including debt instruments) during the year. Accordingly, the provision of clause 3(x)(a) of the order are not applicable.

b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally). Accordingly, the provisions of clause 3(x)(b) of the order are not applicable.

xi) a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

b) No report under subsection (12) of section 143 of the Companies Act, 2013 has been filed in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this audit report.

c) As represented to us by the management, there are no whistle blower complaints received by the company during the year. Accordingly, provisions of clause 3(xi)(c) of the order are not applicable.

xii) The Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not applicable.

xiii) In our opinion and according to the information and explanations given to us, the Company has complied with provisions of sections 177 and 188 of the Companies Act, 2013 in respect of transactions with the related parties and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.

xiv) a) As per information and explanations given to us, the Company has appointed independent firm of Chartered Accountants to conduct Internal Audit. In our opinion, the internal audit system is commensurate with the size and the nature of its business.

b) We have considered the Internal Audit reports of the company issued till date, for the period under audit.

xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with the directors or persons connected with its directors and hence the provisions of Section 192 of the Companies Act are not applicable.

xvi) a) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause (xvi)(a) of the Order are not applicable to the Company.

b) According to the information and explanations provided to us, the Company has not conducted any Non- Banking Financial or Housing Finance activities therefore the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.Accordingly, provisions of clause 3(xvi)(b) of the Order are not applicable

c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, provisions of clause 3(xvi)(c) of the Order are not applicable

d) According to the information and explanations given to us by the Management, in our opinion, there is no core investment company as part of the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016). Accordingly, the provisions of clause 3(xvi)(d) of the Order are not applicable.

xvii) Based on our examination of the books and records of the Company, the Company has not incurred cash losses in the financial year and in the immediately preceding financial year. Accordingly, the provisions of clause 3(xvii) of the order are not applicable.

xviii) There has been no resignation of the statutory auditors during the year. Accordingly, the provisions of clause 3 (xviii) of the order are not applicable.

xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report and that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due .

xx) a) There is no unspent amount towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in schedule VII to the Companies Act in compliance with second proviso to sub section (5) of Section 135 of the said Act. Hence, reporting under clause 3(xx) (a) of the Order is not applicable.

b) There is no unspent amount in respect of ongoing projects, which are required to be transferred into a Special account within a period of 30 days from the end of the financial year in compliance with the provision of section 135(6) of the said Act. Hence, reporting under clause 3(xx)(b) of the order is not applicable.

Reporting as per Companies (Auditors Report) Order 2020 -Immovable Property not held in the name of the Company

Appendix A

Description of Property	Gross Carrying Value (Rs. in crore)	Held in the name of	Whether promoter, director or their relative or employee	Property Held Range (Financial Year)	Reason for not being held in the name of the company
Office Space, World Trade Center, Nauroji Nagar	561.69	Ministry of Housing and Urban Affairs	No	2025	Conveyance deed is yet to be executed
Residential Flats at Safdarjung	102.43	Ministry of Railway	No	2021,2025	Lease Deed is yet to be executed.

Annexure - B to the Independent Auditors Report

Referred to in paragraph 2 under ‘Report on other legal and regulatory requirements section of our report of even date for the year ended 31 March, 2025 to the members of Rail Vikas Nigam Limited.

On the directions issued by the Comptroller and Auditor General of India under Section 143(5) of the Act, indicating the areas to be examined by the Statutory Auditor during the course of audit of annual accounts of Rail Vikas Nigam Limited (Standalone) for the year 2024-25:

Sl. No.	Directions / Sub Directions	Action taken	Impact on standalone financial statement
1	Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated.	The Company has SAP system in place to process all the accounting transactions through IT system. Based on the audit procedures carried out and as per the information and explanations given to us, no accounting transactions have been processed/ carried outside the IT system. Accordingly, there are no implications on the integrity of the accounts.	Nil
2	Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/ interest made by a lender due to Company inability to repay the loan? If yes, the financial impact may be stated?Whether such cases are properly accounted for?	In accordance with the audit procedures carried out and as per the information and explanations given to us by the Company, there was no restructuring of existing loans or cases of waiver/write off of debts/ loans/ interest made by a lender to the Company due to the Companys inability to repay the loan.	Nil
3	Whether funds received/ receivable for specific schemes from central state agencies were properly accounted for/utilized as per its terms and conditions? List the cases of deviation.	In accordance with the audit procedures carried out and as per the information and explanations given to us by the Company, the company has not received grant/subsidy towards any specific scheme from Central/ State Government or its agencies during the financial year 2024-25.	Nil

Annexure - C to the independent Auditors Report

Referred to in paragraph 3(f) to “Report on Other legal and regulatory requirements” of the Independent Auditors Report of even date to the members of RAIL VIKAS NIGAM LIMITED on the standalone financial statements for the year ended 31 March 2025.

Report on the Internal Financial Controls under Clause (i) of Sub section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of RAIL VIKAS NIGAM LIMITED ("the Company") as of 31 March 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

ManagementsResponsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects,an adequate internal financial controls with reference tostandalone financial statements, except control over monitoring of the estimated cost of completion of projectand such internal financial controls withreference to standalone financial statements were operating effectively as at March 31,2025, based on thecriteria for internal financial control with reference to standalone financial statements established by theCompany considering the essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

We have considered the areas of improvement identified which needs further strengthening as reported in determining the nature, timing, and extent of audit tests applied in our audit of standalone financial statements of the Company. However, these areas of improvement do not affect our opinion on the standalone financial statements of the Company.

Management Reply to the Emphasis of Matter of Statutory Auditor on the Standalone Financial Statements of the Company for the F.Y.2024-25

S. No.	Emphasis of Matter	Management Reply
1.	The Company usually receives advance payment from Joint Venture Companies for incurring expenditure on their projects. However, in the case of one joint venture company i.e. Krishnapatnam Railway Company Limited (KRCL), the Company is incurring project expenditure on a regular basis, but nominal amount has been received from KRCL during the year and the total amount receivable from KRCL as on 31st March 2025 is Rs.1355.72 crore which includes Rs. 889.95 crore on account of Interest on delayed payment. The application of interest has been changed from compound to simple w.e.f 1st October 2024, whereas KRCL requested for application of simple interest w.e.f. 01.04.2020 in lieu of compounding interest. The matter is pending with the Board of Directors of the Company and adjustment if any will be recognized as and when the matter is finalized. (refer note nos. 11.1, 11.6 & 46 to the standalone financial statements).	M/s Krishnapatnam Railways Company Limited (KRCL) is a Special Purpose Vehicle created especially for providing rail connectivity to Krishnapatnam Port in Andhra Pradesh. As on 31st March 2025 Rail Vikas Nigam Limited holds 49.76% equity shares in KPRCL. The work was executed in three phases. The execution of the construction work was undertaken by RVNL. As per the construction agreement, KPRCL was to pay quarterly advances to RVNL for execution of the work. but due to dispute between MoR and KRCL regarding apportionment of revenue from traffic receipts, KRCL have not able to generate enough revenue to finance the construction work through RVNL. But as the contracts had already been awarded by RVNL, commitments had to be met out of its own source. Also, as per the terms and conditions of the concession agreement stopping of works would have resulted into bigger loss to RVNL.The pace of payment by KRCL has been improving as the movement on this project has been increasing continuously. It is expected that sufficient revenue will be generated and KRCL will be paying back the balance due to RVNL along with interest as per the construction agreement. During the financial year 2024-25, the application of interest has been changed from compound to simple w.e.f 1st October 2024, whereas KRCL requested for application of simple interest w.e.f. 01.04.2020 in lieu of compounding interest. The matter is pending with the Board of Directors of the Company and adjustment if any will be recognized as and when the matter is finalized. Further, during the year 2024- 25, Rs. 219.74 crore were received.Authorities of KRCL are being pursued for arranging payments to RVNL.
2.	In view of the representation made by one of the Joint Venture Company KRCL for waiver of departmental charges and pending decision by the Board of Directors of the Holding Company, the claim for departmental charges @ 5% of the completion cost of the project has not been raised on KRCL by the Company. Also during the year the methodology of application of interest has been changed from compound to simple w.e.f 1st October 2024 in case of KRCL. (refer note no. 46 to the standalone financial statements).	As per the construction agreement between RVNL and KRCL, it has been decided to charge departmental charges (5%) on completion of project i.e. on the basis of completion report finalization. As per para 1705 of Engineering code of Indian Railway "the completion Report of a project should be submitted to Railway Board within 18 months after the end of financial half year in which completion estimate is submitted. It is submitted that this project is not yet completed in full respect and hence charging of departmental charges is not yet due.
3.	Balances of some of the Trade Receivables, Other Assets, Trade and Other Payable accounts are subject to confirmation/reconciliation from the respective parties. The management does not expect to have any material differences affecting the financial statements for the year ended 31st March 2025 (refer note no. 52 to the standalone financial statements).	These are mainly advances to Zonal Railways given either for execution of works on behalf of RVNL or supply of sleepers and rails for utilization in RVNL projects, which is a regular process. Zonal Railways are advised to give accountal of the advance given but confirmations of outstanding balances from some Zonal Railways were not received in spite of repeated requests. The advance was given to Electricity Companies for either power supplies or for shifting of cables in connection with the projects against which the accountal is received on completion of the work. Payables mainly include funds received from MoR pending adjustment and security deposits/retention monies.Management does not expect to have any material financial impact of such pending confirmations/reconciliations.