We have audited the accompanying standalone financialstatements of RAIL VIKAS NIGAM LIMITED, (hereinafterreferred to as "the Company"), which comprise of theStandalone Balance Sheet as at 31st March 2026, the StandaloneStatement of Profit and Loss (including Other ComprehensiveIncome), the Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flows for the year thenended, and notes to the standalone financial statements,including a summary of material accounting policies andother explanatory information (hereinafter referred to as "thestandalone financial statements").
In our opinion and to the best of our information and accordingto the explanations given to us, the aforesaid standalonefinancial statements give the information required by theCompanies Act, 2013 ("the Act") in the manner so requiredand give a true and fair view in conformity with the IndianAccounting Standards ("Ind AS") prescribed under section133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended and accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at 31st March 2026, its profit (including othercomprehensive income), changes in equity, and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statementsin accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditors'Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India ("ICAI") togetherwith the ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisions of theAct and the Rules there under, and we have fulfilled our otherethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.
Emphasis of Matter
We draw your attention to the following matters:
a. The Company usually receives advance payment fromJoint Venture Companies for incurring expenditure ontheir projects. However, in the case of one joint venturecompany i.e., Krishnapatnam Railway Company Limited(KRCL), the Company is incurring project expenditure ona regular basis, some amount has been received fromKRCL during the year and the total amount receivablefrom KRCL as on 31st March 2026 is C1116.26 crore whichincludes C889.95 crore on account of Interest on delayedpayment. The application of interest has been changedfrom compound to simple w.e.f. 151 October 2024, whereasKRCL requested for application of simple interest w.e.f.01.04.2020 in lieu of compounding interest. The matteris pending with the Board of Directors of the Companyand adjustment if any will be recognized as and when thematter is finalized. (refer note nos. 11.1, 11.6 & 48 to thestandalone financial statements).
b. Balances of some of the Trade Receivables, OtherAssets, Trade and Other Payable accounts are subject toconfirmation/reconciliation from the respective parties.The management does not expect any material impacton the financial statements arising from such pendingconfirmations for the year ended 31st March 2026 (refernote no. 56 to the standalone financial statements).
Our opinion is not modified in respect of the matters mentionedin the above paragraphs.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements of the current period. Thesematters were addressed in the context of our audit of thestandalone financial statements as a whole, and in formingour opinion thereon, we do not provide a separate opinionon these matters. We have determined the matters describedbelow to be the key audit matters to be communicated inour report.
Sr.
No.
Key Audit Matter
How our audit addressed the Key Audit Matter
1.
Revenue Recognition in terms of Ind AS 115 "Revenue fromContracts with Customers"
Accounting Standard on Revenue which prescribes five stepsrevenue recognition model.
The Company recognizes revenue for a performance obligation
Our audit procedures included considering theappropriateness of the Company's revenue recognitionaccounting policies and assessing compliance with thepolicies in terms of the applicable accounting standards.We evaluated the effectiveness of control over thepreparation of information that are designed to ensure
satisfied over time after estimating its progress towardscomplete satisfaction of the performance obligation. There are
completeness and accuracy. We selected a sample ofcontracts, and tested the operating effectiveness of the
significant accounting judgements in estimating revenue to be
internal control, relating to identification of the distinct
recognized on contracts with customers, including estimationof costs to complete. The Company recognizes revenue on the
performance obligations and satisfaction of performanceobligations. We also examined costs incurred vis a vis the
basis of stage of completion in proportion of the contract costsincurred at balance sheet date, relative to the total estimated
estimated cost to complete the contract and tested their
costs of the contract at completion. The recognition of revenue
recoverability by comparing the same with the contract
is therefore dependent on estimates in relation to the total
estimated costs of each such contract.
We performed following substantive procedures over
During order fulfilment, contractual obligations may need tobe reassessed. In addition, change orders or cancellations have
revenue recognition with specific focus on whetherthere is single performance obligation or multipleperformance obligations in the contract and whether
to be considered. As a result, total estimated project costs mayexceed total contract revenues and therefore require immediate
the performance obligation is being satisfied over the
recognition of the expected loss. Ind AS 115 requires entities toexercise judgement, taking into consideration all the relevantfacts and circumstances when applying each step of the modelto contracts with their customers. The application of the revenueaccounting standard involves certain key judgements relatingto -
period of time or at a point in time:
• Read, analyzed and identified the distinctperformance obligations in these contracts.
• Compared these performance obligations with thatidentified and recorded by the Company.
i. identification of distinct performance obligations.
• Considered the terms of the contracts to verifythe transaction price used to allocate to separate
ii. determination of transaction price of the identified
performance obligations.
• Checked whether the performance obligation
iii. the appropriateness of the basis used to measure revenue
is being satisfied over the period of time or at a
recognized at a point in time or over time.
point in time.
Additionally, the revenue accounting standard contains
Performed analytical procedures for reasonableness of
disclosures which involve collation of information inrespect of disaggregated revenue and periods overwhich the remaining performance obligations will besatisfied subsequent to the balance sheet date. Revenuerecognition from these judgements were identified as a KeyAudit Matter and required a higher extent of audit effort.Refer Note no. 2.10.1 to the Standalone Ind AS FinancialStatements.
revenues disclosed
2.
Provisions and Contingent liabilities relating to ongoing
Our audit procedures included, but were not limited to
litigations
the
following:
The Company is subject to a number of legal, arbitration, andtax cases for which final outcome cannot be easily predicted andwhich could potentially result in significant liabilities.
•
Obtained understanding of the process ofidentification and measurement of provisions andcontingent liabilities relating to ongoing litigation
The assessment of whether liability is recognized as a provision
implemented by the Management, through various
or disclosed as a contingent liability in the standalone financial
discussions held with Company's finance personnel.
statements is inherently subjective and requires significantmanagement judgement in determination of the cash outflowsfrom the business, interpretation of applicable laws andregulations, and careful examination of pending assessments atvarious levels.
Tested the design and operating effectiveness of thecontrols put in place by the management in relationto assessment of the outcome of the pendinglitigations.
Since the amounts involved are significant and due to therange of possible outcomes leading to high estimationuncertainty that requires significant management
Inspected the summary of litigation matters anddiscussed key developments during the year withthe Company's Finance personnel.
and auditor judgement, this matter is considered
Inspected and evaluated, where applicable,
to be a key audit matter for the current year audit.
external legal and/or regulatory advice sought by
Refer Note no. 40 to the Standalone Ind AS Financial Statements
the Company.
read with accounting policy 2.17 & 2.18.
Discussed and challenged the management'sassessment of the likelihood, magnitude andaccounting of any liability that may arise in certainmaterial cases. Accordingly, we reviewed the amountof provisions recognized and contingent liabilitiesdisclosed in the standalone financial statementsand exercised our professional judgement to assessthe appropriateness of such conclusions, involvingexperts as required.
Evaluated the adequacy of disclosures made inthe Company's standalone financial statementsin accordance with the applicable accountingstandards.
The Company's Management and Board of Directorsare responsible for the other information. The otherinformation comprises the information included in theManagement Discussion and Analysis, Director's Report,Business Responsibility and Sustainability Report CorporateGovernance and Shareholder's Information, but does notinclude the consolidated financial statements, standalonefinancial statements, and our auditor's report thereon. Theannual report is expected to be made available to us after thedate of this auditor's report.
Our opinion on the standalone financial statements does notcover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationidentified above when it becomes available to us and, indoing so, consider whether the other information is materiallyinconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit, orotherwise appears to be materially misstated. When we readsuch other information as and when made available to us andif we conclude that there is a material misstatement therein,we are required to communicate the matter to those chargedwith governance and take necessary actions as per applicablelaws and regulations.
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect tothe preparation of these standalone financial statements thatgive a true and fair view of the financial position, financialperformance including other comprehensive income, changesin equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India, including theIndian Accounting Standards (Ind AS) prescribed under section133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding ofthe assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application ofappropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design,implementation and maintenance of adequate internalfinancial controls, that were operating effectively for ensuringthe accuracy and completeness of the accounting records,relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board ofDirectors is responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis ofaccounting unless management either intends to liquidate theCompany or to cease operations, or has no realistic alternativebut to do so.
The Board of Directors are responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a whole arefree from material misstatement, whether due to fraud orerror, and to issue an auditors' report that includes our opinion.Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financialstatements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement ofthe standalone financial statements, whether due to fraudor error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the Company has adequate internalfinancial controls system in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management andBoard of Directors use of the going concern basis of
accounting and, based on the audit evidence obtained,whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If weconclude that material uncertainty exists, we are requiredto draw attention in our auditors' report to the relateddisclosures in the standalone financial statements or, ifsuch disclosures are inadequate, to modify our opinion.Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However,future events or conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure, and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that, individually or in aggregate, makesit's probable that the economic decisions of a reasonablyacknowledgeable user of the standalone financial statementmay be influenced. We consider quantitative materiality andqualitative factors in (i) planning the scope of our audit workand in evaluating the results of our work; and (ii) to evaluatethe effect of any identified misstatements in the statement.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.We describe these matters in our auditors' report unless lawor regulation precludes public disclosure about the matteror when, in extremely rare circumstances, we determine thata matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of suchcommunication.
1. As required by the Companies (Auditors' Report) Order,2020 ("the Order"), issued by the Central Governmentof India in terms of Section 143(11) of the Act, and onthe basis of such checks of the books and records of theCompany as we considered appropriate and accordingto the information and explanation given to us, we give
in "Annexure A", a statement on the matters specifiedin paragraphs 3 and 4 of the said Order, to the extentapplicable.
2. As required by Comptroller and Auditor General of Indiathrough directions/sub-directions issued under Section143(5) of the Companies Act 2013, on the basis ofwritten 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 andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books;
(c) The Standalone Balance Sheet, the StandaloneStatement of Profit and Loss (including the OtherComprehensive Income), the Standalone Statementof Changes in Equity and the Standalone Statementof Cash Flows dealt with by this Report are inagreement with the books of account;
(d) In our opinion, the aforesaid standalone financialstatements comply with the Indian AccountingStandards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian AccountingStandards) Rules, 2015 as amended;
(e) Pursuant to the Notification No. GSR 463(E) dated 5thJune 2015 issued by the Ministry of Corporate Affairs,Government of India, provisions of sub-section (2)of Section 164 of the Act are not applicable to theCompany, being a Government Company;
(f) We are enclosing herewith a report in"Annexure - C" for our opinion on adequacyof internal financial controls system in place inthe Company and the operating effectiveness ofsuch controls;
(g) Pursuant to the Notification No. GSR 463(E) dated 5thJune 2015 issued by the Ministry of Corporate Affairs,Government of India, provisions of Section 197 ofthe Companies Act, 2013, are not applicable to theCompany, being a Government Company; and
(h) With respect to the other matters to be included inthe Auditors' Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, inour opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalonefinancial statements - Refer Note 40 to thestandalone financial statements;
ii. The Company has made provision, as required underthe applicable law or Indian Accounting Standards formaterial foreseeable losses, if any, and to the extentascertained on long-term contracts Refer Note no. 19to the Standalone Ind AS Financial Statements. TheCompany did not have any derivative contracts.
iii. There was no amount which was required to betransferred to the Investor Education and ProtectionFund by the Company.
iv. a). The Management has represented that, to the
best of its knowledge and belief, no funds havebeen advanced or loaned or invested (eitherfrom borrowed funds or share premium or anyother sources or kind of funds) by the Companyto or in any other person(s) or entity(ies),including foreign entities ("Intermediaries"),with the understanding, whether recordedin writing or otherwise, that the Intermediaryshall, directly or indirectly lend or invest inother persons or entities identified in anymanner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provideany guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.
(b) The Management has represented, that,to the best of its knowledge and belief, nofunds have been received by the Companyfrom any person(s) or entity(ies), includingforeign entities ("Funding Parties"), with theunderstanding, whether recorded in writingor otherwise, that the Company shall, directlyor indirectly, lend or invest in other persons orentities identified in any manner whatsoeverby or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee,security or the like on behalf of the UltimateBeneficiaries.
(c) Based on the audit procedures performedthat have been considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has caused us tobelieve that the representations under sub¬clause (i) and (ii) of Rule 11(e) contain anymaterial misstatement.
v. a) The final dividend proposed in the previous
year, declared and paid by the company duringthe year is in accordance with Section 123 ofthe Act to the extent applicable.
b) The interim dividend declared and paid by theCompany during the year is in accordance withsection 123 of the Act.
c) As stated in Note 32 to the accompanyingstandalone financial statements, the Board ofDirectors of the Company has proposed finaldividend for the year which is subject to theapproval of the members at the ensuing AnnualGeneral Meeting. The amount of dividendproposed is in accordance with section 123 ofthe Act, to the extent applicable
vi. Based on our examination which included testchecks, for the financial year ended March 31,2026,the company has used an accounting software formaintaining its books of account which has a featureof recording audit trail (edit log) facility and the
same has been operated throughout the year forall relevant transactions recorded in the software.Further, during the course of our audit we did notcome across any instance of audit trail feature beingtampered with. Additionally, the audit trail has beenpreserved by the company as per the statutoryrequirements for record retention. Further based onour examination, the company has used an inventorysoftware WMS which is owned & operated by a thirdparty software service provider, for maintainingits inventory and audit trail for the same has notbeen made available to us, hence we are unableto comment whether audit trail feature of the saidsoftware was enabled and operated throughoutthe year for all relevant transactions recorded in thesoftware or whether there were any instances of theaudit trail feature been tampered with.
For Gandhi Minocha & Co.,
Chartered AccountantsFirm No.: 00458N
Place: New DelhiDated: May 25, 2026
Sd/-
Manoj Bhardwaj
(Partner)
Membership No.: 098606UDIN: 26098606KGNZTU8781