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, (the Company"), which comprise the Balance Sheet as at 31^st March 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant 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 prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2024, its profit (including other comprehensive profit), 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe

that the audit evidence obtained by us, 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 receives advance payment from Joint Venture Companies for incurring expenditures on their projects. However, in case of one joint venture company i.e. Krishnapatnam Railway Company Limited (KRCL), the Company is incurring project expenditures on a regular basis but insignificant amount has been received from KRCL during the year and the total amount receivable from KRCL as on 31^st March, 2024 is Rs.1453.39 crore (including accrued interest amounting to Rs. 14.32 crore) which includes Rs. 797.55 crore on account of Interest (refer note nos. 10.1 & 10.6 to the standalone financial statements).

b. In view of the representation made by KRCL for waiver of departmental charges and pending decision by the Board of Directors of the Company, the claim for departmental charges @ 5% of the completion cost of the project has not been raised on KRCL by the Company (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 31^st March, 2024 (refer note no. 52 to the standalone financial statements).

Our opinion is not modified in respect of these matters.

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, and we do not provide a separate opinion on these matters.

Key Audit Matter	Auditors Response
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.
Managements disclosures with regards to provisions and contingent liabilities relating to provisions and contingent liabilities relating to ongoing litigations are presented in note no. 37 to the Companys standalone financial statements.	* 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.
The assessment of whether a 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.	* Inspected the summary of litigation matters and discussed key developments during the year with the Companys Finance personnel.
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 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 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.
Recognition, measurement, estimation, presentation and disclosures in respect of "Revenue from contracts with Customers" under Ind AS 115	We have assessed the Companys internal process for adoption and evaluating the impact of this Ind AS. Our audit approach consisted design and testing of effectiveness of internal controls and procedures as follows:
The application of Ind AS 115 involves certain key judgments, estimation, identification of distinct performance obligations, determination of transaction price, measurement of revenue recognition and disclosures including presentation of balances in the financial statements. Refer note no. 34 to the standalone financial statements.	* Evaluated the process of implementation of this Ind AS on revenue recognition and effectiveness of controls over the preparation of information that are designed to ensure the completeness and accuracy. * Selected a sample of existing continuing contracts and new contracts, and tested the operating effectiveness
The Company engages in Cost Plus contracts and Fixed Price contracts, wherein, revenue is recognised as per the input method based on the Companys estimate of contract cost.	of the internal control, relating to identification of the distinct performance obligations and determination of transaction price.
Since the amounts involved are significant this matter is considered to be a key audit matter for the current year audit.	* Tested the relevant information accounting systems and change relating to contracts and related information used in recording and disclosing revenue and presentation of contract balances and trade receivables in accordance with the Ind AS.
Further explanation why we consider this as a key audit matter is as follows:	* We have performed analytical procedure including comparison of the financial information and other related items considering materiality.
The application of the revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognised at a point in time or over time. Additionally, revenue accounting standard contains disclosures which involves 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.
Assessment and recoverability of Trade Receivables and Contract Assets
The Company have trade receivables outstanding (net of provision) of Rs. 1106.48 crore and contract assets of Rs. 324.71 crore at the end of 31st March, 2024. These balances are related to revenue recognized in line with Ind AS 115"Revenue from contracts with customers" for ongoing contracts and completed contracts. The assessment of its recoverability is a key audit matters in the audit due to its size and high level of management judgment. Refer note nos. 10.1 & 10.6 to the standalone financial statements.	We have assessed the Companys internal process to recognize the revenue and review mechanism of trade receivables and contract assets. Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows:
	* Evaluated the process of invoicing, verification, and reconciliation with customers.
	* Obtained the list of project wise outstanding details and its review mechanism by the management.
	* Discussed the Companys practice on impairment of trade receivables and contract assets.
	* Tested the accuracy of aging of trade receivables and contract assets at the year-end on sample basis.
	* Performed analytical procedures and test of details for reasonableness, recoverability and other related material items.

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 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.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to communicate the fact. We have nothing to report in this regard.

Responsibilities of the management and those charged with governance for the standalone financial statements

The accompanying standalone financial statements have been approved by the Companys Board of Directors. The Companys Management and Board of Directors are 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, other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015. 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 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 Management and Board of Directors are 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also 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 the Standards on Auditing, specified under section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the 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 the Management and Board of Directors.

• 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 a 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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 sub-section (11) of Section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. The Comptroller & Auditor General of India has issued directions indicating the areas to be examined in terms of Sub section (5) of Section 143 of the Act, compliance of which are set out in Annexure B".

3. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 other comprehensive income), the standalone Statement of Changes in Equity and the Standalone Statement of Cash Flow 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 specified under Section 133 of the Act;

(e) As per the notification number G.S.R. 463(E) dated 5^th June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the Company, since it is a Government Company;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C";

(g) With respect to the other matters to be included in the Auditors Report, as per notification number G.S.R. 463 (E) dated 5^th June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial Remuneration is not applicable to the Company, since it is a Government Company.

(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 (as amended), 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 no.37 to the standalone financial statements);

ii) The Company did not have any longterm contracts including derivative contract for which there were any material foreseeable losses;

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

iv) (a) The Management has represented to

us that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity ("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 to us that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("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 such audit procedures that we 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), as provided under (a) and (b) above, contain any material misstatement.

v) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

vi) Based on the information and explanations furnished to us, our examination which included test checks and in accordance with requirements of the Implementation Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (revised 2024 edition) issued by the Institute of Chartered Accountants of India, the Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year. However, as explained a separate log file has not been maintained due to resource constraint for all relevant transactions recorded in the software.

However, as explained to us, editing facility is not available in accounting software except for in the fields of assignments/texts.

We did not come across any instance of the audit trail feature being tampered with.

Our examination of the audit trail was in the context of an audit of financial statements carried out in accordance with the Standard of Auditing and only to the extent required by Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (revised 2024 edition) issued by the Institute of Chartered Accountants of India. We have not carried out any audit or examination of the audit trail beyond the matters required by the aforesaid Rule 11 (g) nor have we carried out any standalone audit or examination of the audit trail.

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under Report on other legal and regulatory requirements section of our report for the year ended 31^st March, 2024 to the members of Rail Vikas Nigam Limited.

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

(i) In respect of the Companys Property, Plant and

Equipment and Intangible Assets:

(a) (A) The Company has maintained proper

records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company has maintained proper

records showing full particulars of intangible assets.

(b) The Property, Plant and Equipment have been physically verified by the management at year end and no material discrepancies were noticed on such verification. In our opinion, periodicity of physical verification is reasonable having regards to size of the Company and the nature of its assets.

(c) The Company does not own any freehold immovable property and hence reporting under clause 3(i)(c) of the Order is not applicable. However, in respect of residential buildings included in Right of use Assets that have been taken on lease, the lease agreements are yet to be executed in favour of the Company.

(d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against the Company as at 31^st March, 2024 for holding any 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 the inventory primarily consists of project work in progress. The inventories were physically verified by the management at year end and no material discrepancies were observed on the aforesaid verification.

(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 not provided guarantee to companies, firms, limited liability partnership or any other parties during the year. The Company has provided security to a banking company on the behalf of a joint venture. The Company has also made investment in companies and granted interest bearing unsecured loan to a subsidiary and interest free unsecured loan to another subsidiary in respect of which the requisite information is as below. The Company has not made any investments in or granted any loans, secured or unsecured, to firms and limited liability partnership.

(a) The Company has given loans to its Subsidiaries and provided security to a bank on behalf of a JV. Particulars of the same are as under:

(Dq in rrnrpQ)

Particulars	Security	Loans
Aggregate amount during the year ended 31st March, 2024
Subsidiaries	-	64.00
Joint Venture	16.52	-
Balance outstanding as at balance sheet date - 31st March 2024
Subsidiaries	-	25.00
Joint Venture	16.52	-

(b) In our opinion the investments made and the terms and condition of the grant of unsecured loans during the year as above are, prima facie, not prejudicial to the Companys interest.

(c) In the case of interest free unsecured loan given, in our opinion, schedule of repayment of principal and payment of interest has not been stipulated in one case. In another case, interest bearing unsecured loan, is repayable on demand.

(d) There is no overdue amount in respect of loans given.

(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 thereunder:

			(Rs. in crores)
Particulars	All Parties	Promoters	Related Parties
Aggregate amount of loans/ advances in nature of loans
- Repayable on demand (A)	-	-	27.00
- Agreement does not specify any terms or period of	-	-	37.00
repayment (B)
Total (A+B)	-	-	64.00
Percentage of loans/ advances in nature of loans to the total loans	-	-	100%

(iv) In our opinion and according to the information and explanations given to us, the Company has not provided guarantees and security as specified under sections 185 and 186 of the Companies Act, 2013. In respect of the investment made and loans given by the company, in our opinion, the provision of section 185 and 186 of the Act have been complied with.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable.

(vi) The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause (vi) of the Order is not applicable to the Company.

(vii) In respect of statutory dues:

(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, Employees State Insurance, 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.

No undisputed amounts payable in respect of aforesaid statutory dues were outstanding as at 31^st March, 2024 for a period of more than six months from the date they became payable except as given below:

Name of the Statute	Nature of the Dues	Amount (Rs. in crore)*	Period to which amount relates	Due Date	Date Of Payment	Remarks, if any
Employees	Provident Fund	0.01	April-22	15.04.22	-
Provident Funds		0.01	May-22	15.05.22	-
and Miscellaneous		0.01	June-22	15.06.22	-
Provisions Act, 195		0.01	July-22	15.07.22	-
		0.01	August-22	15.08.22	-
		0.01	September-22	15.09.22	-
		0.01	October-22	15.10.22	-
		0.01	November-22	15.11.22	-
		0.01	December-22	15.12.22	-
		0.01	January-23	15.01.23	-
		0.01	February-23	15.02.23	-
		0.01	March-23	15.03.23	-
		0.01	April-23	15.05.23	-
		0.02	May-23	15.06.23	-
		0.01	June-23	15.07.23	-
		0.01	July-23	15.08.23	-
		0.01	August-23	15.09.23	-

(b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on 31^st March, 2024 on account of disputes are given below:

Name of the Statute	Nature of the Dues	Amount (Rs. in crores)	Period to which the amount relates	Forum where dispute is pending
Income Tax Act, 1961	Income Tax	0.02	A. Y. 2018-19	CIT (A)
		27.98	A. Y. 2022-23	A.O.
		1213.86	A. Y. 2021-22	ITAT
Finance Act, 1994	Service Tax	148.68	F. Y. 2012-13 to	CESTAT, New Delhi
	Penalty	130.78	F. Y. 2017-18
Goods & Services Tax Act, 2017	CGST	4.26	F.Y.2018-19	Additional Commissioner (Appeal) State Ahmedabad - Gujrat
	SGST	4.26
	Interest	4.73
	Penalty	0.85
Goods & Services Tax Act, 2017	CGST	0.94	F. Y. 2017-18	Additional Commissioner
	SGST	0.94		(Appeal) State Lucknow- UP
	IGST	5.18
	Penalty	0.71
Goods & Services Tax Act, 2017	Interest	0.93	F. Y. 2017-18	Appellate Additional Commissioner States Tax Vijaywada- Andhra Pradesh
Goods & Services Tax Act, 2017	CGST	0.01	F. Y. 2018-19	Appellate Additional Commissioner States Tax Vijaywada- Andhra Pradesh
	SGST	0.01
	Interest	0.02
	Penalty	0.002
Goods & Services Tax Act, 2017	CGST	1.06	F. Y. 2019-20	Appellate Additional Commissioner States Tax Vijaywada- Andhra Pradesh
	SGST	1.06
	IGST	0.01
	Interest	1.41
	Penalty	0.21
Goods & Services Tax Act, 2017	CGST	0.06	F. Y. 2017-18	Additional Commissioner (Appeal) State Jharkhand - Ranchi
	SGST	0.06
	Interest	0.06
	Penalty	0.10
Goods & Services Tax Act, 2017	CGST	0.11	F. Y. 2018-19	Additional Commissioner (Appeal) State Jharkhand - Ranchi
	SGST	0.11
	IGST	0.18
	Penalty	0.04
Goods & Services Tax Act, 2017	CGST	0.67	F. Y. 2017-18	Additional Commissioner (Appeal) State Kota- Rajasthan
	SGST	0.67
	Interest	1.52
	Penalty	0.13
Goods & Services Tax Act, 2017	CGST	0.005	F. Y. 2017-18	Joint Commissioner (State Tax) Begumpet division Hyderabad- Telangana
	SGST	0.005
	IGST	1.58
	Penalty	0.16
Goods & Services Tax Act, 2017	CGST	0.06	F. Y. 2017-18	Additional Commissioner (Appeal) State Uttrakhand - Dehradun (UK)
	SGST	0.06
	Interest	0.13
	Penalty	0.01
Goods & Services Tax Act, 2017	CGST	0.03	F. Y. 2017-18	Additional Commissioner (Appeal) State Patna - Bihar
	SGST	0.03
	Interest	0.07
	Penalty	0.01
Goods & Services Tax Act, 2017	CGST	0.93	F. Y. 2017-18	Additional Commissioner (Appeal) State Lucknow- UP
	SGST	0.93
	IGST	5.18
	Penalty	0.71

 

Name of the Statute	Nature of the Dues	Amount (Rs. in crores)	Period to which the amount relates	Forum where dispute is pending
Goods & Services Tax Act, 2017	CGST	9.96	F. Y. 2017-18	Joint Commissioner of Commercial taxes - Appeal -1 Bengaluru - Karnataka
	SGST	9.96
	IGST	0.17
	Interest	22.07
	Penalty	2.01
Goods & Services Tax Act, 2017	CGST	3.32	F. Y. 2017-18	Special Commissioner Dept. Of Trade & Taxes , Delhi State - Delhi.
	SGST	3.32
	Interest	6.64
	Penalty	0.66
Goods & Services Tax Act, 2017	CGST	1.16	F. Y. 2017-18	Special Commissioner Dept. Of Trade & Taxes , Delhi State - Delhi.
	SGST	1.16
	Interest	2.31
	Penalty	0.23
Goods & Services Tax Act, 2017	CGST	0.01	F. Y. 2017-18	Additional Commissioner (Appeal) Central Guwahati- Assam
	SGST	0.01
	IGST	0.44
	Penalty	0.05
Goods & Services Tax Act, 2017	CGST	0.99	F. Y. 2018-19	Joint Commissioner of Commercial taxes - Appeal -1 Bengaluru - Karnataka
	SGST	0.99
	Interest	4.53
	Penalty	0.20
Goods & Services Tax Act, 2017	CGST	1.06	F. Y. 2018-19	Additional Commissioner (Appeal) State Ambala - Haryana
	SGST	1.06
	Interest	2.01
	Penalty	0.21
Goods & Services Tax Act, 2017	CGST	4.95	F. Y. 2018-19	Additional Commissioner (Appeal) State Lucknow- UP
	SGST	4.95
	IGST	0.44
	Penalty	1.03
Goods & Services Tax Act, 2017	CGST	0.33	F. Y. 2018-19	Additional Commissioner (Appeal) State Kota- Rajasthan
	SGST	0.33
	Interest	0.66
	Penalty	0.07
Goods & Services Tax Act, 2017	CGST	0.43	F. Y. 2018-19	Additional Commissioner (Appeal) State Chennai - Tamil Nadu
	SGST	0.43
	IGST	1.47
	Interest	2.08
	Penalty	0.23

(viii) There were no transaction relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) (a) The Company has not defaulted in repayment of

loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(c) On an overall examination of the financial statements of the Company, term loans were applied for the purpose for which such loans were obtained.

(d) According to the information and explanation to us, the Company has not raised funds on short term basis and hence, reporting under clause 3(ix)(d) of the Order is not applicable.

(e) On an overall examination of the financial statements of the Company, 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 venture entities.

(f) The Company has not raised any loans during the year on the pledge of securities held in its subsidiaries and joint ventures and hence reporting on clause 3(ix)(f) of the Order is not applicable.

(x) (a) The Company has not made any public offer

(including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is 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 sub-section (12) of section 143 of the Companies Act has been filed in ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of the report.

(c) As per the information and explanations given to us, the Company has not received any whistleblower complaint during the year and hence reporting under clause 3(xi)(c) of the Order is not applicable.

(xii) As the Company is not a Nidhi Company, the requirements of reporting under clause (xii) of the Order is not applicable.

(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of Companies Act, 2013 with respect to applicable transactions with the related parties and details thereof 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 for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent ofour audit procedures.

(xv) The Company has not entered into any non-cash transaction with its directors or any other person connected with its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) (a) In our opinion, the Company is not required to

be registered under section 45-1A of Reserve Bank of India Act, 1934. Hence reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(b) In our Opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company during the year.

(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and 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 indicating 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) There is no unspent amount towards Corporate Social Responsibility (CSR) under sub-section (5) of Section 135 of the Act pursuant to any project. Accordingly, reporting under clause 3(xx)(a) and (b) of the Order are not applicable.

(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements. Accordingly, no comment in respect of the said clause has been included in this report.

	For V. K. DHINGRA & CO., Chartered Accountants FRN.: 000250N
Place: New Delhi Date: 17th May, 2024	Sd/- (VIPUL GIROTRA) PARTNER M. No. 084312 UDIN: 24084312BKCTET6512

Corporate Overvie^^s Statutory ReportsFinancial Statements^s

Rail Vikas Nigam Ltd

Annual Report 2023-24

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^st March, 2024 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 2023-24:

Impact on

S.No. Areas Examined Observations/Findings Financial

Statement

1 Whether the company has system in The Company has SAP system in place to process NIL place to process all the accounting all the accounting transactions through IT system. transactions through IT system? If Based on the audit procedures carried out and as

yes, the implications of processing of per the information and explanations given to us, accounting transactions outside IT no accounting transactions have been processed/ system on the integrity of the accounts carried outside the IT system. Accordingly, along with the financial implications, there are no implications on the integrity of the if any, may be stated. accounts.

2 Whether there is any restructuring of Based on our examination of the records of NIL an existing loan or cases of waiver/ the Company and as per the information and

write off of debts /loans/interest etc. explanations given to us, there are no restructuring

made by a lender to the company due of any loan or cases of waiver/write off of debts/

to the companys inability to repay loans/interest etc. made by a lender to Company

the loan? If yes, the financial impact due to the Companys inability to repay the loan.

may be stated. Whether such cases

are properly accounted for? (In case,

lender is a Government Company,

then this direction is also applicable for

statutory auditor of lender company).

3 Whether funds (grants/subsidy Based on the information and explanation NIL etc.) received/receivable for specific furnished to us, the Company has not received schemes from Central/ State grant/subsidy etc. towards any specific scheme Government or its agencies were from Central / State Government or its agencies properly accounted for/ utilized as per during the financial year 2023-24.

its term and conditions? List the cases of deviation.

For V. K. DHINGRA & CO.,

Chartered Accountants FRN.: 000250N

Sd/-

(VIPUL GIROTRA)

PARTNER

Place: New Delhi M. No. 084312

Date: 17^th May, 2024 UDIN: 24084312BKCTET6512

/ 193

ANNEXURE C TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 3(f) under Report on other legal and regulatory requirements section of our report of even date for the year ended 31^st March, 2024 to the members of Rail Vikas Nigam Limited.

Report on the Internal Financial Controls referred 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^st March, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements and Board of Directors responsibilities for internal financial controls

The Companys Management and the Board of Directors are 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 ( ICAI ). 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 was 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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 system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2024 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.

	For V. K. DHINGRA & CO., Chartered Accountants FRN.: 000250N
Place: New Delhi Date: 17th May, 2024	Sd/- (VIPUL GIROTRA) PARTNER M. No. 084312 UDIN: 24084312BKCTET6512