We have audited the accompanying standalonefinancial statements of RAIL VIKAS NIGAM LIMITED,(hereinafter referred to as "the Company"), whichcomprise of the Standalone Balance Sheet as at31 March 2025, the Standalone Statement of Profitand Loss (including Other Comprehensive Income),the Standalone Statement of Changes in Equityand the Standalone Statement of Cash Flows forthe year then ended, and notes to the standalonefinancial statements, including a summary ofmaterial accounting policies and otherexplanatory information (hereinafter referred to as"the standalone financial statements").
In our opinion and to the best of our informationand according to the explanations given to us,the aforesaid standalone financial statements givethe information required by the Companies Act,2013 ("the Act") in the manner so required andgive a true and fair view in conformity with theIndian Accounting Standards ("Ind AS") prescribedunder section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules,2015, as amended and accounting principlesgenerally accepted in India, of the state of affairsof the Company as at 31 March 2025, its profitincluding other comprehensive income, changesin equity, and its cash flows for the year ended onthat date.
Basis for Opinion
We conducted our audit of the standalonefinancial statements in accordance with theStandards on Auditing (SAs) specified under section143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditors'Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We areindependent of the Company in accordance withthe Code of Ethics issued by the Institute ofChartered Accountants of India ("ICAI") togetherwith the ethical requirements that are relevant to
our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with theserequirements and the Code of Ethics. We believethat the audit evidence we have obtained issufficient and appropriate to provide a basis forour opinion on the standalone financialstatements.
Emphasis of Matter
We draw your attention to the following matters:
a. The Company usually receives advancepayment from Joint Venture Companies forincurring expenditure on their projects.However, in the case of one joint venturecompany i.e. Krishnapatnam RailwayCompany Limited (KRCL), the Company isincurring project expenditure on a regularbasis, but nominal amount has been receivedfrom KRCL during the year and the totalamount receivable from KRCL as on 31March 2025 is Rs.1355.72 crore which includesRs. 889.95 crore on account of Interest ondelayed payment. The application of interesthas been changed from compound to simplew.e.f 1st October 2024, whereas KRCLrequested for application of simple interestw.e.f. 01.04.2020 in lieu of compoundinginterest. The matter is pending with the Boardof Directors of the Company and adjustmentif any will be recognized as and when thematter is finalized. (refer note nos. 11.1, 11.6& 46 to the standalone financial statements).
b. In view of the representation made by oneof the Joint Venture Company KRCL forwaiver of departmental charges andpending decision by the Board of Directorsof the Holding Company, the claim fordepartmental charges@ 5% of thecompletion cost of the project has not beenraised on KRCL by the Company. Also duringthe year the methodology of application ofinterest has been changed from compoundto simple we.f. 1st October 2024 in case ofKRCL.(refer note no. 46 to the standalonefinancial statements).
c. Balances of some of the Trade Receivables,Other Assets, Trade and Other Payableaccounts are subject to confirmation/reconciliation from the respective parties. Themanagement does not expect to have anymaterial differences affecting the financialstatements for the year ended 31March 2025(refer note no. 52 to the standalone financialstatements).
Our opinion is not modified in respect of thematters mentioned in the above paragraphs.
Key Audit Matters
Key audit matters are those matters that, in ourprofessional judgment, were of most significancein our audit of the standalone financial statementsof the current period. These matters wereaddressed in the context of our audit of thestandalone financial statements as a whole, andin forming our opinion thereon, we do not providea separate opinion on these matters. We havedetermined the matters described below to bethe key audit matters to be communicated in ourreport.
Sr.
No.
Key Audit Matter
How our audit addressed the KeyAudit Matter
1.
Revenue Recognition in terms of Ind AS 115
Our audit procedures included considering the
“Revenue from Contracts with Customers”
appropriateness of the Company's revenuerecognition accounting policies and assessing
Accounting Standard on Revenue which
compliance with the policies in terms of the
prescribes five steps revenue recognition
applicable accounting standards. We
model.The Company recognizes revenue for a
evaluated the effectiveness of control over the
performance obligation satisfied over time
preparation of information that are designed
after estimating its progress towards complete
to ensure completeness and accuracy. We
satisfaction of the performance obligation.
selected a sample of contracts, and tested the
There are significant accounting judgements in
operating effectiveness of the internal control,
estimating revenue to be recognised on
relating to identification of the distinct
contracts with customers, including estimation
performance obligations and satisfaction of
of costs to complete. The Company recognises
performance obligations. We also examined
revenue on the basis of stage of completion in
costs incurred vis a vis the estimated cost to
proportion of the contract costs incurred at
complete the contract and tested their
balance sheet date, relative to the total
recoverability by comparing the same with the
estimated costs of the contract at completion.The recognition of revenue is therefore
contract revenue.
dependent on estimates in relation to the total
We performed following substantive
estimated costs of each such contract.During
procedures over revenue recognition with
order fulfilment, contractual obligations may
specific focus on whether there is single
need to be reassessed. In addition, change
performance obligation or multiple
orders or cancellations have to be considered.
performance obligations in the contract and
As a result, total estimated project costs may
whether the performance obligation is being
exceed total contract revenues and therefore
satisfied over the period of time or at a point
require immediate recognition ofthe expectedloss. Ind AS 115 requires entities to exercise
in time:
judgement, taking into consideration all the
Read, analyzed and identified the distinct
relevant facts and circumstances when
performance obligations in these
applying each step of the model to contracts
contracts.
with their customers. The application of the
Compared these performance
revenue accounting standard involves certain
obligations with that identified and
key judgements relating to -
recorded by the Company.
i. identification of distinct performance
Considered the terms of the contracts to
obligations.
verify the transaction price used to
ii. determination of transaction price of the
allocate to separate performance
identified performance obligations.
iii. the appropriateness of the basis used to
Checked whether the performance
measure revenue recognized at a point in
obligation is being satisfied over the
time or over time.
period of time or at a point in time.
Additionally, the revenue accounting standard
Performed analytical procedures for
contains disclosures which involve collation ofinformation in respect of disaggregatedrevenue and periods over which the remainingperformance obligations will be satisfiedsubsequent to the balance sheet date. Revenuerecognition from these judgements wereidentified as a Key Audit Matter and required ahigher extent of audit effort.
Refer Note no. 2.10 to the Standalone Ind ASFinancial Statements.
reasonableness of revenues disclosed
2.
Provisions and Contingent liabilities relating to
Our audit procedures included, but were not
ongoing litigations
limited to the following:
The Company is subject to a number of legal,
• Obtained understanding of the process
arbitration and tax cases for which final
of identification and measurement of
outcome cannot be easily predicted and which
provisions and contingent liabilities
could potentially result in significant liabilities.
relating to ongoing litigationimplemented by the Management,
The assessment of whether liability is recognised
through various discussions held with
as a provision or disclosed as a contingentliability in the standalone financial statements
Company's finance personnel.
is inherently subjective and requires significant
• Tested the design and operating
management judgement in determination of
effectiveness of the controls put in place
the cash outflows from the business,
by the management in relation to
interpretation of applicable laws and
assessment of the outcome of the
regulations, and careful examination of pendingassessments at various levels.
pending litigations.
• Inspected the summary of litigation
Since the amounts involved are significant and
matters and discussed key developments
due to the range of possible outcomes leading
during the year with the Company's
to high estimation uncertainty that requiressignificant management and auditor
Finance personnel.
judgement, this matter is considered to be a
• Inspected and evaluated, where
key audit matter for the current year audit.Refer Note no. 38 to the Standalone Ind AS
applicable, external legal and/orregulatory advice sought by theCompany.
Financial Statements read with accounting
• Discussed and challenged the
policy 2.17 & 2.18.
management's assessment of the
likelihood, magnitude and accounting ofany liability that may arise in certainmaterial cases. Accordingly, we reviewedthe amount of provisions recognized andcontingent liabilities disclosed in thestandalone financial statements andexercised our professional judgement toassess the appropriateness of suchconclusions, involving experts as required.
• Evaluated the adequacy of disclosuresmade in the Company's standalonefinancial statements in accordance withthe applicable accounting standards.
Information Other than the StandaloneFinancial Statements and Auditors' ReportThereon
The Company's Management and Board ofDirectors are responsible for the other information.The other information comprises the informationincluded in the Management Discussion andAnalysis, Director's Report including Annexures toDirector's Report, Business Responsibility Report,Corporate Governance and Shareholder'sInformation, but does not include theconsolidated financial statements, standalonefinancial statements and our auditor's reportthereon. The annual report is expected to be madeavailable to us after the date of this auditor'sreport.
Our opinion on the standalone financialstatements does not cover the other informationand we do not express any form of assuranceconclusion thereon.
In connection with our audit of the standalonefinancial statements, our responsibility is to readthe other information identified above when itbecomes available to us and, in doing so, considerwhether the other information is materiallyinconsistent with the Standalone FinancialStatements or our knowledge obtained during thecourse of our audit, or otherwise appears to bematerially misstated.
When we read such other information as andwhen made available to us and if we concludethat there is a material misstatement therein, weare required to communicate the matter to thosecharged with governance.
Responsibilities of Management and ThoseCharged with Governance for theStandalone Financial Statements
The Company's Board of Directors is responsiblefor the matters stated in section 134(5) of the Actwith respect to the preparation of thesestandalone financial statements that give a trueand fair view of the financial position, financialperformance including other comprehensiveincome, changes in equity and cash flows of theCompany in accordance with the accountingprinciples generally accepted in India, includingthe Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards)Rules, 2015 as amended. This responsibility alsoincludes maintenance of adequate accountingrecords in accordance with the provisions of theAct for safeguarding of the assets of the Companyand for preventing and detecting frauds and other
irregularities; selection and application ofappropriate accounting policies; makingjudgments and estimates that are reasonable andprudent; and design, implementation andmaintenance of adequate internal financialcontrols, that were operating effectively forensuring the accuracy and completeness of theaccounting records, relevant to the preparationand presentation of the standalone financialstatements that give a true and fair view and arefree from material misstatement, whether due tofraud or error.
In preparing the standalone financial statements,the Board of Directors is responsible for assessingthe Company's ability to continue as a goingconcern, disclosing, as applicable, matters relatedto going concern and using the going concernbasis of accounting unless management eitherintends to liquidate the Company or to ceaseoperations, or has no realistic alternative but todo so.
The Board of Directors are responsible foroverseeing the Company's financial reportingprocess.
Auditors' Responsibilities for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assuranceabout whether the standalone financialstatements as a whole are free from materialmisstatement, whether due to fraud or error, andto issue an auditors' report that includes ouropinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an auditconducted in accordance with SAs will alwaysdetect a material misstatement when it exists.Misstatements can arise from fraud or error and areconsidered material if, individually or in theaggregate, they could reasonably be expected toinfluence the economic decisions of users taken onthe basis of these standalone financial statements.
As part of an audit in accordance with SAs, weexercise professional judgment and maintainprofessional skepticism throughout the audit. Wealso:
• Identify and assess the risks of materialmisstatement of the standalone financialstatements, whether due to fraud or error,design and perform audit proceduresresponsive to those risks, and obtain auditevidence that is sufficient and appropriateto provide a basis for our opinion. The risk ofnot detecting a material misstatementresulting from fraud is higher than for oneresulting from error, as fraud may involve
collusion, forgery, intentional omissions,misrepresentations, or the override of internalcontrol.
• Obtain an understanding of internal controlrelevant to the audit in order to design auditprocedures that are appropriate in thecircumstances. Under section 143(3)(i) of theAct, we are also responsible for expressing ouropinion on whether the Company hasadequate internal financial controls systemin place and the operating effectiveness ofsuch controls.
• Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmade by management.
• Conclude on the appropriateness ofmanagement and Board of Directors use ofthe going concern basis of accounting and,based on the audit evidence obtained,whether a material uncertainty exists relatedto events or conditions that may castsignificant doubt on the Company's abilityto continue as a going concern. If weconclude that material uncertainty exists, weare required to draw attention in ourauditors' report to the related disclosures inthe standalone financial statements or, if suchdisclosures are inadequate, to modify ouropinion. Our conclusions are based on theaudit evidence obtained up to the date ofour auditors' report. However, future eventsor conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure,and content of the standalone financialstatements, including the disclosures, andwhether the standalone financial statementsrepresent the underlying transactions andevents in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatement that,individually or in aggregate, makes it's probablethat the economic decisions of a reasonablyacknowledgeable user of the statement may beinfluenced. We consider quantitative materialityand qualitative factors in (i) planning the scopeof our audit work and in evaluating the results ofour work; and (ii) to evaluate the effect of anyidentified misstatements in the statement.
We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit andsignificant audit findings, including any significant
deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governancewith a statement that we have complied withrelevant ethical requirements regardingindependence, and to communicate with themall relationships and other matters that mayreasonably be thought to bear on ourindependence, and where applicable, relatedsafeguards.
From the matters communicated with thosecharged with governance, we determine thosematters that were of most significance in the auditof the standalone financial statements of thecurrent period and are therefore the key auditmatters. We describe these matters in our auditors'report unless law or regulation precludes publicdisclosure about the matter or when, in extremelyrare circumstances, we determine that a mattershould not be communicated in our reportbecause the adverse consequences of doing sowould reasonably be expected to outweigh thepublic interest benefits of such communication.
Other Matters
1. The standalone audited financial statementsfor the year ended 31 March 2024 wereaudited by the previous auditors and theyhad expressed an unmodified opinion onstandalone audited financial statements videtheir report dated 17th May 2024.
Our opinion is not modified in respect of the abovematter.
Report on Other Legal and RegulatoryRequirements
1. As required by the Companies (Auditors'Report) Order, 2020 ("the Order"), issued bythe Central Government of India in terms ofSection 143(11) of the Act, and on the basisof such checks of the books and records ofthe Company as we considered appropriateand according to the information andexplanation given to us, we give in“Annexure A”, a statement on the mattersspecified in paragraphs 3 and 4 of the saidOrder, to the extent applicable.
2. As required by Comptroller and AuditorGeneral of India through directions/sub-directions issued under Section 143(5) of theCompanies Act 2013, on the basis of writtenrepresentation received from themanagement, we give our report on thematter specified in the “Annexure -B”attached.
3. As required by Section 143(3) of the Act, wereport that:
(a) We have sought and obtained all theinformation and explanations which to thebest of our knowledge and belief werenecessary for the purposes of our audit;
(b) In our opinion, proper books of account asrequired by law have been kept by theCompany so far as it appears from ourexamination of those books;
(c) The Standalone Balance Sheet, theStandalone Statement of Profit and Loss(including the Other ComprehensiveIncome), the Standalone Statement ofChanges in Equity and the StandaloneStatement of Cash Flows dealt with by thisReport are in agreement with the books ofaccount;
(d) In our opinion, the aforesaid standalonefinancial statements comply with the IndianAccounting Standards (Ind AS) prescribedunder section 133 of the Act read with theCompanies (Indian Accounting Standards)Rules, 2015 as amended;
(e) Pursuant to the Notification No. GSR 463(E)dated 5th June 2015 issued by the Ministry ofCorporate Affairs, Government of India,provisions of sub-section (2) of Section 164 ofthe Act are not applicable to the Company,being a Government Company;
(f) We are enclosing herewith a report in“Annexure - C” for our opinion on adequacyof internal financial controls system in placein the Company and the operatingeffectiveness of such controls;
(g) Pursuant to the Notification No. GSR 463(E)dated 5th June 2015 issued by the Ministry ofCorporate Affairs, Government of India,provisions of Section 197 of the CompaniesAct, 2013, are not applicable to theCompany, being a Government Company;and
(h) With respect to the other matters to beincluded in the Auditors' Report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, in our opinionand to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impactof pending litigations on its financialposition in its standalone financialstatements - Refer Note 38 to the
standalone financial statements;
ii. The Company has made provision, asrequired under the applicable law orIndian Accounting Standards formaterial foreseeable losses, if any, andto the extent ascertained on long-termcontracts Refer Note no. 17 to theStandalone Ind AS Financial Statements.The Company did not have anyderivative contracts.
iii. There was no amount which wasrequired to be transferred to the InvestorEducation and Protection Fund by theCompany.
iv. a). The Management has representedthat, to the best of its knowledge andbelief, no funds have been advancedor loaned or invested (either fromborrowed funds or share premium or anyother sources or kind of funds) by theCompany to or in any other person(s)or entity(ies), including foreign entities("Intermediaries"), with theunderstanding, whether recorded inwriting or otherwise, that theIntermediary shall, directly or indirectlylend or invest in other persons or entitiesidentified in any manner whatsoever byor on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee,security or the like on behalf of theUltimate Beneficiaries.
(b) The Management has represented,that, to the best of its knowledge andbelief, no funds have been received bythe Company from any person(s) orentity(ies), including foreign entities("Funding Parties"), with theunderstanding, whether recorded inwriting or otherwise, that the Companyshall, directly or indirectly, lend or investin other persons or entities identified inany manner whatsoever by or on behalfof the Funding Party ("UltimateBeneficiaries") or provide any guarantee,security or the like on behalf of theUltimate Beneficiaries.
(c) Based on the audit proceduresperformed that have been consideredreasonable and appropriate in thecircumstances, nothing has come to ournotice that has caused us to believethat the representations under sub¬clause (i) and (ii) of Rule 11(e) containany material misstatement.
v. a) The final dividend proposed in theprevious year, declared and paid by thecompany during the year is inaccordance with Section 123 of the Actto the extent applicable.
b) As stated in Note 30 to theaccompanying standalone financialstatements, the Board of Directors of theCompany has proposed final dividendfor the year which is subject to theapproval of the members at the ensuingAnnual General Meeting. The amount ofdividend proposed is in accordancewith section 123 of the Act, to theextent applicable
vi. Based on our examination whichincluded test checks, for the financialyear ended March 31, 2025, thecompany has used an accountingsoftware for maintaining its books ofaccount which has a feature ofrecording audit trail (edit log) facilityand the same has been operatedthroughout the year for all relevanttransactions recorded in the software.Further, during the course of our auditwe did not come across any instanceof audit trail feature being tamperedwith. Additionally, the audit trail hasbeen preserved by the company as perthe statutory requirements for recordretention.
For Gandhi Minocha & Co.,Chartered AccountantsFirm No.: 00458N
Place: New DelhiDated: 21 stMay 2025
Manoj Bhardwaj
(Partner)
Membership No.: 098606UDIN:25098606BMHWKX2120