Railtel Corporation of India Ltd Auditor Reports

To The Members of

RailTel Corporation of India Limited

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of RailTel Corporation of India Limited which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of material accounting policies and other explanatory information (hereinafter referred to as "the Financial Statements") in which are incorporated the Returns for the year ended on that date for 1 branch audited by us and 3 branches audited by the branch auditors of the company.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by 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 ( India Accounting Standards ) Rule 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2026, and its net profit and other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 -

Key Audit Matters	How our audit addressed the key audit matter
1. Accuracy of recognition, measurement, estimation, presentation and disclosures in respect of "Revenue from contracts with Customers" under Ind AS 115.	Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows:
The application of this revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of identified the appropriateness of the basis used to measure revenue recognized over a period, and disclosures including presentations of balances in the standalone financial statements.	Evaluated the effectiveness of controls over the preparation of information that are designed to ensure the completeness and accuracy.
Revenue recognised but not yet billed to customers (Unbilled Revenue) involves significant management judgment in determining the stage of completion and timing of revenue recognition in accordance with Ind AS 115. The Company recognises revenue over time based on contract progress measured using inputs such as costs incurred or achievement of milestones, which requires estimation of total contract costs, assessment of performance obligations, and evaluation of contractual terms. Additionally, the recoverability of unbilled revenue requires significant judgment, particularly with respect to customer acceptance, contractual enforceability, and potential disputes.	Selected a sample of existing continuing contracts and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price.
We identified this as a key audit matter because estimated efforts is a critical estimate to determine revenue, as it requires consideration of progress of the contract, efforts incurred till date, efforts required to complete the remaining performance obligation.	• Tested the relevant information, accounting systems and change relating to contracts and related information used in recording and disclosing revenue in accordance with Ind AS 115.
(Refer Note No. 54 of the standalone financial statements.)	• Reviewed a sample of contracts to identify possible delays in achieving milestones, which require change in estimated efforts to complete the remaining performance obligations.
	• Performed analytical procedures and test of details for reasonableness and other related material items.

 

Key Audit Matters	How our audit addressed the key audit matter
2. Contingent Liabilities.	We have adopted the following audit procedures
The Company is subject to a number of legal, regulatory, arbitration and tax cases for which final outcome cannot be easily predicted and which could potentially result in significant liabilities.	• Understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases
The assessment of whether a liability is recognised as a provision or disclosed as a contingent liability in the 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 of regulatory authorities.	• Discussed with the management any material developments and latest status of legal matters at the corporate office.
We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias.	• Read various correspondences and related documents pertaining to litigation cases and performed substantive procedures on calculations supporting the disclosure of contingent liabilities Assessed the adequacy and completeness of disclosures.
(Refer item no. b of note no. 51 and Item No. 2A in Part B of the Material Accounting Policy Information to the Standalone Financial Statements).	Based on the above procedure performed, the estimations and disclosure of contingent liabilities are adequate and reasonable.

 

Key Audit Matters	How our audit addressed the key audit matter
3. Assessment of Expected Credit Loss (ECL) for Trade Receivables	We have applied the following audit procedures in this regard:
The company has applied a simplified approach to measure ECL for trade receivables, which allows for lifetime expected credit losses to be recognized from initial recognition of the receivables. The company determines the expected credit losses on trade receivables by using a provision matrix that is based on historical credit loss experience, adjusted for forward looking factors to the debtors and the economic environment. Recognition and measurement of expected credit loss involves significant management judgement. These include:	• We have obtained an understanding of the companys credit policy along with the applications controls associated with the accuracy of the information included in the debtors ageing report.
• Identification of exposures where there is a significant increase in credit risk • Completeness and timing of recognition of default, in accordance with the credit policy of the company	• We evaluated the companys process of ECL calculation. We assessed the reasonableness of the assumptions used in ECL calculation by comparing them with the historic data adjusted for current market condition and forwardlooking information.
• Estimation of Forward-Looking Adjustments.	• We have also considered the disclosures made by the company under the head credit risk.
Due to the significance of trade receivables and the complexity involved in the ECL calculation, this was considered a key audit matter. (Refer Note No. 53 of financial statements and Item No. 2A in Part B of the Material Accounting Policy Information to the financial statements)	Based on the above procedure performed, the management estimations and judgement in ECL were found to be reasonable.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position and financial performance including other comprehensive income ,cash flow and changes in equity 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.

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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the entitys 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 entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the entitys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 Companies Act, 2013, 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 managements 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 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 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

f

our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Others Matters

We did not audit the financial statements / information of 3 branches i.e. Eastern Region, Western Region and Southern Region included in the standalone financial statements; whose financial statements / information reflect total assets of Rs. 3,69,954 lakhs as at 31st March 2026 and revenue from operation of Rs. 3,11,825 lakhs, total net profit before tax of Rs. 39,327 lakhs for the year ended on that date, as considered in the Financial Statements. The financial statements / information of these branches has been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches is based solely on the reports of other branch auditors.

We draw attention to the fact that the Company has only one Independent Director on its Board as on the date of this report, which is not in compliance with the requirements of Section 149(4) read with Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, which mandates that every listed public company shall have at least one-third of the total number of directors as independent directors.

Our report is not modified in respect of these matters.

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 Companies Act 2013, 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. 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 purpose 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 and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.

(c) The reports on the accounts of the branch offices of the Company audited under Section 143 (8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

(d) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.

(e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014.

(f) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Companies Act 2013, are not applicable to the Company.

(g) With respect to 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";

(h) As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Companies Act 2013, is not applicable to the Government Companies. Accordingly, reporting in accordance with the requirement of provisions of section 197(16) of the Act is not applicable on the Company.

(i) 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:

a. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. - Refer item No. b of Note No. 51 to the Financial Statement

b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

d. (a) The Management has represented that, to the best of its knowledge and belief, other than as

disclosed in the notes to the accounts, 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, whether, 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, other than as disclosed in the notes to the accounts, 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, whether, 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) 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..

e. (a) The final dividend proposed for the previous year, declared and paid by the Company during

the year is in accordance with Section 123 of the Act, as applicable.

(b) Interim dividend declared and paid by the Company during the year is in accordance with Section 123 of the Act.

f. Based on our examination, which included test checks, 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 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 and the audit trail has been preserved by the company as per the statutory requirements for record retention.

Annexure "A" referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our Independent Auditors Report, of even date, to the Members of RailTel Corporation of India Limited on Financial Statements for the year ended 31st March 2026

i. In respect of the Companys Property, Plant and Equipment and Intangible Assets:

a. (A) The Company has maintained proper records showing full particulars with respect to most of its

Property, Plant and Equipment, and is in the process of updating the quantitative, identification marks and situation details with respect to certain Property, Plant and Equipment in the records maintained by the Company.

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

b. The company has a policy to physically verify the Property, Plant & Equipment by which they are verified in a phased manner. During the year as part of the internal audit, the internal auditors have carried out the physical verification of Property, Plant and Equipment of the Company and no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us, we report that the title deeds of all the immovable properties which are included under the head property, plant and equipment (other than properties where the company is the lessee, and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company except the following:-

Description of Property	Gross carrying Value (K in lakhs)	Held in the name of	Whether title deed holder is a Promoter, Director or their relative or employee	Period held -indicate range where appropriate	Reason for not being held in the name of the company
Leasehold Building (Right of Use Asset)	Rs. 1,396.00	Ministry of Railways	Yes	3rd June 2024	Lease Deed is Pending from Ministry of Railways.
Description of Property	Gross carrying Value (K in lakhs)	Held in the name of	Whether title deed holder is a Promoter, Director or their relative or employee	Period held -indicate range where appropriate	Reason for not being held in the name of the company
	Rs. 0.65			25th October 2025
	11.38			2nd February 2026
	Rs. 9.80			30th October 2025
	Rs. 0.28			4th July 2025
	Rs. 12.38			1st September 2025
	Rs. 5.80			4th July 2025
	Rs. 0.19			4th July 2025
	Rs. 0.81	The building constructed is not separately registered either in the name of the Company or in the name of Ministry of Railway.		25th December 2025
	Rs. 0.01			10th June 2025	The building constructed is not separately registered either in the name of the Company or in the name of Ministry of Railway.
	Rs. 43.41			20th April 2025
	Rs. 0.19			30th October 2025
Building- RCC Structure (On Railway Land)	Rs. 11.64			12th February 2026
	Rs. 12.95		Not Applicable	20th March 2025
	Rs. 10.93			20th March 2025
	Rs. 0.99			7th August 2025
	Rs. 6.54			8th December 2025
	Rs. 0.01			1st September 2025
	Rs. 16.65			10th July 2025
	Rs. 4.94			4th July 2025
	Rs. 1.73			10th June 2025
	Rs. 10.21			29th July 2025
	Rs. 2.64			4th July 2025
	Rs. 0.94			20th April 2025
	Rs. 10.96			20th March 2025
	Rs. 1.89			4th July 2025
	Rs. 0.46			30th October 2025

d. The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year. Accordingly, the provision of clause 3(i)(d) is 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) Although the company does not have any inventory, as at the end of the year. But during

the year, Inventory was physically verified by the management. In our opinion, the frequency of verification is reasonable. The coverage and procedure of physical verification of inventory followed by the management, in our opinion, is appropriate. No material discrepancies were noticed on the last physical verification.

b) In our opinion, and according to the information and explanations given to us, during the year, the Company has not been sanctioned any working capital loan, hence this clause is not applicable.

iii. According to the information and explanations given to us, the Company has not made any investment, provided guarantee, security and not granted loans and advances in the nature of loans, secured and unsecured, to Companies, Firms, Limited Liability Partnerships or any other parties. In view of this, sub clause

(a) (b) (c) (d) (e) and (f) of clause 3(iii) of the Order is not applicable on the Company.

iv. According to the information and explanations given to us, the Company has not made any loans, investments, guarantees, and security in terms of Section 185 and 186 of Companies Act, 2013. Accordingly, clause 3(iv) of the Order is not applicable.

v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits or 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. We have broadly reviewed the accounts and records maintained by the Company for the year 2025-26 pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act read with Companies (Cost Records & Audit) Rules, 2014, as amended and we are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determining whether they are accurate and complete.

vii. (a) According to the information and explanations given to us, the Company is generally regular in depositing

the undisputed statutory dues including goods and service tax, provident fund, income tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. According to the information and explanations given to us, there are no undisputed statutory dues are outstanding arrears as on 31^st March, 2026 for a period of more than six months from the date they became payable.

(b) According to records of the company and information and explanations given to us by the Company, the gross statutory dues of income tax or sale tax or service tax or duty of custom or duty of excise or value added tax or Cess or Goods and Service Tax and any other statutory dues of the Company which have not been deposited on account of dispute or deposited under protest and the forum where the dispute is pending are given below:-

Period Name Amount Closing

OU	Name of the Statute	Nature of Dues	Opening Amount (In Lacs)	Addition (In Lacs)	Amount Adjusted (In Lacs)	Closing Amount (In Lacs)	Period to which the amount relates	Forums where dispute is pending
SR	GST	Demand as per Notice DIN No.20211255YK0000333C1F Dt. 28-Dec-2021 regarding Mismatch in liability declared against RCM and ITC availed under RCM in GSTR-3B for the period Apr- 21 to Sep-21	11.67	Nil	Nil	11.67	Apr-21 to Sep- 21	Andhra Pradesh
SR	GST	Demand vide Notice No.ZD3611210157004 Dt. 13-Nov-2021 for F.Y 2018- 19, Show Cause Notice under section 73	53.75	Nil	Nil	53.75	FY 2018- 19	Telangana
ER	GST	demand on ground that excess ITC Claimed in GSTR- 3B w.r.t. ITC auto populated in GSTR-2A.	33.71	Nil	Nil	33.71	FY 2018- 19	GST-BIHAR (Appellate Tribunal)
NR	RVAT Act	Levy demand of raised entry under Tax and the act.	5.41	Nil	Nil	5.41	FY 2015- 16	RVAT Department
NR	RVAT Act	Levy demand of raised entry under Tax and the act.	12.46	Nil	Nil	12.46	FY 2016- 17	RVAT Department
NR	RVAT Act	Demand as per Notice u/s 49, 50 of RVAT Act-2003, u/s 9(3) of CST Act-1956 & u/s 174 of RGST Act-2017 of F.Y 2017-18 dt. 01-Oct-2019.	13.40	Nil	Nil	13.40	FY 2017- 18	RVAT Department
NR	HVAT Act	Demand raised on assessment.	7.74	Nil	Nil	7.74	FY 2015- 16	HVAT Department
NR	Income Tax Act 1961	TDS demand due to short deduction of TDS.	0.17	Nil	0.09	0.09	2010-11 to 2012- 13	TDS (Commissioner)
CO	Income Tax Act 1961	Appeal filed against AOs order for AY 2016-17 for making additions on account of disallowance for "Exp booked in FY 2016-17 and claimed in FY 15-16 for avoiding prior period expenses in FY 2016-17" & 10 Lakh u/s 14A rwr 8D, an amount equal to 1% of Annual Avg. of Investments in REL	144.09	Nil	Nil	144.09	AY 2016- 17	CIT-(A), New Delhi
CO	Income Tax Act 1961 Income	Appeal filed against AOs order for AY 2018-19 for additions made u/s 143(3)	331.19	Nil	Nil	331.19	AY 2018- 19	CIT-(A), New Delhi
CO	Tax Act 1961	TDS demand due to short deduction of TDS.	0.13	Nil	Nil	0.13	10-1111-12 19-20	Traces
WR	GST	Appeal Filed against Mismatch of ITC order No. ZD2409230596907 Dt 29- Sep-2023	36.45	Nil	Nil	36.45	FY 2017- 18	Gujrat GST Department
NR	GST	Demand raised on assessment (FY 2017-18)	73.85	Nil	Nil	73.85	FY 2017- 18	Delhi GST
ER	GST	Mismatch of ITC, Order u/s 73 Dt 29-Apr-2024	34.45	Nil	Nil	34.45	FY 2023- 24	Jharkhand GST Commissioner Appeals
WR	GST	Excess ITC claimed in GSTR 3B/9 which is not confirmed in GSTR 2A , 8A of GSTR 9 & RCM tax paid	152.19	Nil	Nil	152.19	FY 2019- 20	MH GST
WR	GST	Excess outward tax in GSTR 1 compared to GSTR 9/ GSTR 3B	68.37	Nil	3.39	64.97	FY 2020- 21	MH GST
		1) INELIGIBLE ITC AS PER PROVISION U/s 17 (5) OF OGST ACT.
ER	GST	2) Non payment of interest liability on account of delayed filing of returns for the month of Oct-19 by 1 day.	0.69	Nil	Nil	0.69	FY 2019- 20	Odisha GST
		3) Short payment of tax liability under IGST.
		4) Short Payment of tax paid against zero rated supplies.
		1) Excess claim of ITC in GSTR-3B in compare to GSTR-2A
ER	GST	2) ITC claimed from cancelled dealers, return defaulters & tax non payers Demand raised on assessment (FY 2019-20)	84.88	Nil	4.48	80.40	FY 2020- 21	Assam GST
NR	GST	Demand raised on assessment (FY 2019-20)	55.75	Nil	Nil	55.75	FY 2019- 20	Chandigarh GST
NR	GST	Demand raised on fake ITC transferred by supplier (FY 17-18 to FY 19-20) - M/s Royal Tech Enterprise	33.45	Nil	1.67	31.77	FY 17-18 to FY 19-20	Haryana GST
NR	GST	Demand raised on assessment (FY 2020-21)	613.04	Nil	32.76	580.	28 FY 2020- 21	Delhi GST
ER	GST	1) Excess ITC claimed in respect of GSTR-2A in GSTR- 3B for the F.Y 2018-19 & 2019-20	-	98.48	4.92	93.56	FY 2018- 19 & 2019-20	Arunachal Pradesh GST
ER	GST	1) Excess ITC claimed in respect of GSTR-2A in GSTR- 3B for the F.Y 2019-20	-	6.00	-	6.00	FY 2019- 20	Arunachal Pradesh GST
NR	GST	Demand raised u/s 74(9), Ref no. ZD071225077435A dt. 29/12/2025	-	699.32	23.10	676.	21 FY 18-19	Delhi GST
NR	GST	Demand raised u/s 74 for ITC Default by Supplier- M/s ITPL. Demand raised u/s 74, Ref no. ZD091225522988V Dt. 29-Dec-2025.	-	12.69	0.40	12.30	FY 18-19	UP GST
NR	GST	Demand raised on assessment u/s 73 vide Ref No. : ZD0912255496038 Date : 30/12/2025.	-	289.26	15.91	273.35	FY 21-22	UP GST
		Total	1,766.84	1,105.76	86.73	2,785.87

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 account, during the year in the income 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. According to the information and explanations given to us, the Company has not taken any loan or other borrowings. Hence, sub-clauses (a) (b) (c) (d) (e) and (f) of clause 3(ix) of the Order are not applicable to the Company.

x. According to the information and explanations given to us, the Company has not raised any money by way of initial offer or further public offer (including debt instruments) during the year. Hence, sub clause (a) and (b) of clause 3(x) are not applicable.

xi. (a) According to the information and explanations given to us and as represented by the management

based on examination of the books and records of the Company, no case of material fraud by the Company or on the Company has been noticed or reported during the year.

(b) We have not submitted any report under sub section (12) of Section 143 of the Companies Act, 2013 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, 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, all transactions with related parties are in compliance with section 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements as required by the applicable Indian accounting Standards. (Refer Note No. 48 of the Financial Statements)

xiv. (a) In our opinion and based on our examination, the Company has an internal audit system commensurate

with the size and nature of its business.

(b) We have considered the reports of the Internal Auditors issued to the Company during the year in determining the nature, timing and extent of our audit procedures.

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 them covered under section 192 of the Act. Accordingly, the provision of clause 3(xv) of the Order is 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, the 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 NonBanking 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) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016). Accordingly, 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 any cash losses in the financial year and the immediately preceding financial year. Accordingly, paragraph 3(xvii) of the Order is not applicable.

xviii. There has been no resignation of the statutory auditors during the year. Accordingly, 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 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 will get discharged by the Company as and when they fall due.

xx. (a) In our opinion and according to the information and explanations given to us, there is no such case other than ongoing projects. Therefore, the second proviso to sub-section (5) of section 135 of the said Act is not applicable.

(b) In our opinion and according to the information and explanations given to us, the company has incurred expenditure under Corporate Social Responsibility as required by the provisions of Section 135 of the Act and the unspent amount of Rs.550 Lakhs, as required, has been transferred to the respective CSR bank account as per the guidelines.

Annexure "B" referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements section of our Independent Auditors Report, of even date of RailTel Corporation of India Limited on the Financial Statements for the year ended 31st March 2026

As required by section 143(5) of the Act and in pursuance of directions issued by the Office of the Comptroller and Auditor General of India for the year ended 31st March 2026, we report that:

Directions / Sub-Directions Issued by Comptroller and Auditor General of India	Auditors reply on action taken on the directions	Impact on financial Statement
Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements.	The investments relating to postretirement employee benefits have been made by the Trust and not directly by the Company. Such funds are managed under group policy arrangements with Life Insurance Corporation of India, and the Trust does not undertake any independent valuation of the underlying investments. The valuation of these investments is based on the statements provided by LIC, which reflect the fund value as determined in accordance with applicable regulatory norms. Accordingly, the Company has relied on such statements for the purpose of recognition and measurement in the financial statements. Hence, no separate valuation note is required, as the valuation is derived from LIC statements.	NIL
	In regard to Investment made by the company, the company makes short term investments in debt-based schemes of SEBI regulated mutual funds as per investment policy of the company. As on 31.03.2026, balance in investment in liquid funds is Nil.
Whether the Company has a system in place to process all the accounting transactions through IT systemRs. If yes, whether review of this system and controls that are significant to the Companies financial reporting process as well as cyber security has been done and material discrepancies found, if any, have been suitably reportedRs. The implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications may also be reported.	Yes, as per the explanation and information provided to us that the company has implemented Oracle- ERP system which is processing all the accounting transactions. Based on the audit procedures performed by us, reports of reviews conducted by the management, reports of reviews conducted by specialists engaged by the management, there is no material weakness in the IT systems and controls, which may result in material misstatement of the financial statements of the entity	NIL
	As per the explanation and information given to us no deficiencies has been reported in cyber security report.
Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/ State Government or its agencies were properly accounted for/utilized as per its term and conditionsRs. List the cases of deviation	a. During the year, amount received as Viability Gap Funding from GFGNL-Desh and ITMS works amounting to Rs 1.25 Cr and Rs 1.78 Cr respectively has been accounted as other operating income during the year as required by the accounting policy and has been utilised as per the terms and conditions. There are no cases of deviation.	NIL
	b. No Govt grant has been received during FY 2025-26 under Rural wifi project and NE-1 & NE-2 projects.
Whether the Company has identified the key Risk areasRs. If yes, whether the Company has formulated any Risk Management Policy to mitigate these risksRs. If yes, (a) whether the Risk Management Policy has been formulated considering global best practicesRs. (b) whether the Company has identified its data assets and whether it has been valued appropriatelyRs.	The company has identified the key risk areas and has formulated a risk management policy to mitigate these risks. It incorporates principles considered appropriate to the companys operations and risk profile. The Risk Management Policy has been formulated in accordance with SEBI LODR Regulations. The company has not identified any customer data for commercial use and consequently these data assets are not subject to valuation.	NIL
Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERTIN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicableRs. If not, the cases of deviation may be highlighted.	Based on the information and explanations given to us and audit procedures carried out by us, the company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable and RBI regulations is not applicable on the Company not being NBFC except as mentioned below:	NIL
	a. Notice received from SEBI for Non-compliance of minimum independent director as per section 149(4) of the Companies Act 2013.

Annexure "C" referred to in paragraph 3 (g) under Report on Other Legal and Regulatory Requirements section of our Independent Auditors Report, of even date, to the members of RailTel Corporation of India Limited on Standalone Financial Statements for the year ended 31st March 2026

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to the Standalone Financial Statements of RailTel Corporation of India Limited ("the Company") as of March 31, 2026 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility 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 respective regions 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 internal financial controls over financial reporting of the Company 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 with reference to the Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to the Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to the Standalone Financial Statements, 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 judgement, including the assessment of the risks of material misstatement of the standalone 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 with reference to the Standalone Financial Statements.

Meaning of Internal Financial Controls over Financial Reporting

A Companys internal financial control with reference to the Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A

Companys internal financial control with reference to the Standalone Financial Statements 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 the preparation of standalone 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls with reference to the Standalone Financial Statements, 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 with reference to the Standalone Financial Statements to future periods are subject to the risk that the internal financial control with reference to the Standalone Financial Statements 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls with reference to the Standalone Financial Statements in place and such internal financial controls with reference to the Standalone Financial Statements were operating effectively as at 31 March 2026, based on the internal controls over financial reporting criteria established by the Company considering the components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.

For Lunawat & Co.

Chartered Accountants

F.R. No. 000629N

Sd/-

CA. Ramesh k Bhatia

Partner

M. No. 080160

W-2/3A, DLF Phase 3

Sector 24 Gurgaon - 122002 Place: New Delhi

Date: 30th April, 2026

UDIN: 26080160TDUFEV7038