We have audited the accompanying Standalone Financial
Statements of Indian Railway Catering and Tourism Corporation
Limited (“the Company”), which comprise the Balance Sheet as
at March 31, 2025, 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 Notes
to the Standalone Financial Statements, including a summary of
material accounting policies and other explanatory information
(hereinafter referred to as “Standalone Financial Statements”).

In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Standalone Financial
Statements give the information required by the Companies Act,
2013, as amended, (“the Act”) in the manner so required and
give a true and fair view in conformity with the Indian Accounting
Standards (“Ind AS”) prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standard) Rules,
2015, as amended, and other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2025, its profit (financial performance including 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 of the Standalone Financial
Statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the
financial Statements under the provisions of the Act and the
Rules made there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to:

1. Note No. 37.2(iv) regarding Arbitration award pronounced

in April 2022 amounting to H 7,471.65 Lakhs plus simple
interest @ 6% per annum from January 2018 onwards,

given in favour of certain licensees which represents
principal amount towards claims for supply of welcome
drinks not paid to licensees and recovery of differential
costs for the supply of regular meals to the passengers on
the instructions of Railways whereas the price of combo
meal, which is lower than the price of regular meal, was
reimbursed to these licensees. The Company has filed
objections against the award and the same was listed
before Honourable High Court of Delhi. The Company
contends that the main liability in this matter would be of
Railways and the Company has the right to recovery from
Railways in case ultimately it is made liable to pay.

The hearing before Hon’ble high court was done on
19.07.2023 and as per the order dated 09.10.2023, of
Hon’ble high court, the company has been advised to
deposit bank guarantee amount. The company has filed
objections appeal against the award. In compliance of
Hon’ble Delhi High Court order, Bank Guarantee to the
tune of H 8,471.65 lakhs have been deposited with the court
registry as per the orders of Hon’ble Delhi High Court.

The Hon’ble High Court of Delhi set aside and quashed
the award of H 4200 Lakhs against IRCTC while upholding
the smaller claim of H 3200 lakhs and the aforesaid
bank guarantee(s) has been released IRCTC. Aggrieved
by the said decision, the Corporation and the licensee
both have separately filed petitions u/s 37 of Arbitration
and Conciliation Act, 1996 for challenging the impugned
judgment. The Ld. Divisional Bench by way of judgment
dated 10.02.2025 has restored the Arbitral award qua
the Claimant's claim towards second regular meal and
welcome drinks. IRCTC has filed SLP against thejudgement
dated 10.02.2025 before the Hon'ble Supreme Court.

2. Note No.37.2(v) regarding Notice dated 25.02.2022
issued by the National Anti-Profiteering Authority (GST)
alleging profiteering amounting to H 5,041.44 Lakhs for the
period July 1, 2017 to May 31, 2020 against the Company
under Section 171 of the CGST Act, 2017 for not passing on
the benefit of reduction in rate of tax to the consumers by
way of commensurate reduction in the MRP of Railneer
brand of drinking water manufactured and sold by the
Company even though there was reduction in the tax
rate on the introduction of GST w.e.f. July 1, 2017. The
Company contends that Railneer drinking water falls
under controlled price segment as the MRP is fixed by
Ministry of Railways, Government of India and the MRP
fixed in the year 2012 is still continuing despite substantial
increase in prices of raw-materials, power, HR cost, freight

etc. Legal opinion obtained by the Company justifies the
contention of the Company. Competent Commission of
India (“CCI”) is now vested with powers to adjudicate all
such cases in which benefit of tax reduction not being
passed to consumers by the assesses and the matter is
now pending with CCI.

3. Note No. 49(b) regarding railway share on railneer, railway
board clarified that for Rail Neer plants run departmentally
by the company, the profits between Railway board and
company shall be shared in the ratio of 15:85 and for
plants operated under PPP model/run by DCO, profits
between Railway board and company shall be shared
in the ratio 40:60. Provision for the differential amount
of profit sharing @25% (40%-15%) up to 31^st March, 2023
amounting H 1451.24 Lakhs was shown as an exceptional
item for the year ended 31^st March, 2024, even though
the Company had made representation to the Railway
Board for sharing of profit at uniform ratio of 15:85 for all
Railneer plants till FY 2022-23. However, Railway Board
has advised IRCTC for sharing of profit in the ratio of 40:60
for PPP plants.

4. Note No. 39 regarding Balance confirmation letters from
parties & banks: Guidelines issued by the Company
for obtaining balance confirmation letters from parties
& banks have been followed. We are informed that
no balance confirmation letters are sent to Railways/
Government Bodies since their books of account are
maintained on cash basis. The third-party balances are
subject to confirmations and reconciliations from the
various parties. The balance confirmation letters have
been sent to private parties but the response from the
parties is not satisfactory. The system and the procedures
of obtaining balance confirmations at periodic intervals
need to be strengthened to ensure better response
from the parties.

5. Note No.51(b) regarding non-sharing of input tax credit
data of GST for certain periods by Developer cum
Operators (“DCO”) of four Rail Neer plants resulting in
non-recognition of these claims receivables in the books
of account of the Company. Amount of such claims are
not ascertainable at this stage. Further, these DCOs are
also disputing these claims including claims of H388.46
Lakhs debited to their accounts for the year 2024-25.

6. Note Nos.10.1 & 58(i) Regarding trade receivables as on March
31, 2025 includes of H 1,672.43 Crores due from Railways and
Government as on March 31, 2025 (As on March 31, 2024
H 1296.18 Crores). Out of dues from Railways and Government,
outstanding for more than 3 years amounts to H120.77 Crores
and defaulted amount of H 35.80 Crores.

7. Note No. 72 regarding Certain applications made by
the Company for advance ruling relating to applicability
of Goods and Services Tax in respect of certain income

/ receipts amounting to H 33,595 Lakhs received mainly
from the Ministry of Railways, Government of India
for which the decision of the Authority for Advance
Ruling is awaited.

8. Note No.73 regarding the Railway Board's Commercial
Circular no. CC60 of 2019 regarding increase in catering
tariff for post and pre-paid trains, the effect of enhancement
of License Fee for the periods from 18^th November, 2019 to
22^nd March, 2020 (for post-paid trains) and 27^th November,
2021 to 31^st March, 2025 (for post and pre-paid trains)
has not been recognized as some of the licensees have
challenged Company’s decision in respective Hon’ble
High Courts of Delhi, Mumbai, Kolkata and Guwahati and
arbitration. As the matter is sub-judice and the occurrence
is dependent on outcome of certain event in future, the
impact of increase in License fees for pre-paid and post¬
paid trains has not been recognized in the financial
statements for the quarter and year ended 31^st March,
2025 and for previous years up to 31^st March, 2024.

9. Note No. 78 regarding: (i) Differences between certain
subsidiary and control ledger balances which are
under process for identification, reconciliation and
adjustments, if any, as on March 31, 2025, (ii) review and
improvement of system of identification and disclosure
of trade payables including MSME suppliers and their
classification into Micro, Small and Medium category
to ensure proper disclosure of their dues in Standalone
Financial Statements as on March 31, 2025 which needs
improvement by way of confirmations from such parties.

10. (a) Note No. 76 regarding enhancement of charges for

operation of two Tejas trains by the Railway Board,
Ministry of Railways with effect from August 13, 2021
vide its letter dated June 05, 2023 as the earlier
instructions for charges were valid till August 12,
2021. During the year ended March 31, 2024, the
Company has made provision for enhanced charges
with effect from August 13, 2021 for the period up to
March 31, 2023 amounting to H 5,126.20 Lakhs and
shown as an “Exceptional Item' in the financial results.
However, the Company has made representation
to the Railway Board All for withdrawal of these
instructions for enhanced charges from retrospective
effect which is pending.

(b) Exceptional items include H 220.72 lakhs towards the
reversal of RU, stabling and other charges waived
off on Golden Chariot train by KTDC for the previous
Financial Year 2022-23 and of H 3,988.09 lakhs
towards net Impact of one-time reconciliation of
Legacy balances.

Our opinion on the Standalone Financial Statement is not
modified in respect of above matters.

Key Audit Matter

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

Assessment of litigation and related disclosure
of contingent liabilities

Refer to Note No. 2 (c) to the Standalone Financial Statements
- Use of estimates and judgements-Provisions, Contingent
liabilities and Contingent assets and Note No. 37.2 to the
Standalone Financial Statements for “Contingent Liabilities”
and other significant litigations stated therein.

As at March 31, 2025, the Company has exposures towards
number of litigations relating to various matters as set out in
the aforesaid Note.

Significant management’s judgement is required to assess such
matters to determine the probability of occurrence of material
outflow of economic resources and whether a provision should
be made. The judgement is also supported with legal advice in
certain material cases as considered appropriate.

As the ultimate outcome of the litigations are uncertain and
the position taken by the management are based on the
application of their best judgement which may be subject to
management bias, related legal advice including those relating
to interpretation of laws/regulations, we have identified this as
a Key Audit Matter.

How our audit addressed the key audit matter

Our audit procedures included the following:

• We understood, assessed and tested the design and
operating effectiveness of key controls surrounding
assessment of litigations relating to the relevant laws
and regulations;

• We read and considered latest orders / awards by various
courts / authorities on these matters;

• We conducted detailed discussions with in-house
legal head, tax consultants and senior management
to understand their assessment on the most likely
outcome of the material litigations and to understand
the basis considered for the provisions made towards
these litigations;

• We performed our assessment on a test basis on the
underlying calculations supporting the contingent

liabilities/other significant litigations disclosed in the
Standalone Financial Statements;

• We considered external legal opinions, where relevant,
obtained by management;

• We evaluated management’s assessments by
understanding precedent set in similar cases and
assessed the reliability of the management’s past
estimates /judgements;

• We evaluated management’s assessment around those
matters that are not disclosed or not considered as
contingent liability, as the probability of material outflow
is considered to be remote by the management; and

• We assessed the adequacy of the Company’s disclosures.

Based on the above work performed, the assessment of
management in respect of litigations and related disclosures
relating to contingent liabilities/other significant litigations
in the Standalone Financial Statements is considered
to be reasonable.

Information Other than the Financial Statements
and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Management Discussion and Analysis,
Board’s Report including Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance and
Shareholder’s Information, but does not include the Standalone
Financial Statements and our auditor’s report thereon.

Our opinion on the Standalone Financial Statements does not
cover the other information and we do not express any form of
assurance / conclusion thereon.

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

When we read the other information, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Such other information is pending as on the date of
our audit report.

Responsibilities of Management for the
Standalone Financial Statements

The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to the
preparation of these Standalone Financial Statements that

give a true and fair view of the financial position, financial
performance including other comprehensive income, and cash
flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended.

This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the Standalone Financial Statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing
the Company’s financial reporting process.

Auditor’s Responsibility for the audit of the
Standalone 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 auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement of
the financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from

fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;

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

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

• Conclude on the appropriateness of management’s 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 Company’s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor’s 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 auditor’s
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.

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act,
we give in the “Annexure 1” a statement on the matters
specified in paragraphs 3 and 4 of the Order to the
extent applicable.

2. As required by Section 143(3) of the Act, based on our
audit we report that:

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

(i) Balance confirmation letters were not received
by us from most of the parties and some of the
banks. Further, balance confirmation letters
were not sent by offices of IRCTC to railways
and Government Departments. Impact of our
observations stated above on Standalone
Financial Statements can’t be quantified.

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

(c) The Balance Sheet, the Statement of Profit and Loss
including other Comprehensive income, the Cash
Flow Statement and Statement of Changes in equity
dealt with by this report are in agreement with the
books of account.

(d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting
Standards specified in the companies (Indian
Accounting Standards) rules, 2015 (as amended)
under Section 133 of the Act.

(e) In terms of Notification No. 463 (E) dated 5^th June,
2015 issued by the Ministry of Corporate affairs,
provisions of Section 164(2) of the Act regarding
disqualifications of the Directors, are not applicable
as it is a Government Company.

(f) With respect to the adequacy of internal financial
controls over financial reporting with reference to the
Standalone Financial Statements of the Company
and the operating effectiveness of such controls, refer
to our separate Report in “Annexure 2”. Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company’s
internal financial controls over financial reporting.

(g) As required by sub-section (5) of section 143 of the
Act, we enclose herewith “Annexure 3”, a Statement
on the Directions issued by the Comptroller and
Auditor General of India.

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

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

i. The Company has disclosed the impact of
pending litigations on its financial position in its
Standalone Financial Statements. Refer Note
No. 37.2 of the Standalone Financial Statements.

ii. The Company has not entered into any long¬
term contracts including derivative contracts.

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

iv. (a) The Company has represented that, to

the best of its knowledge and belief, no
funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Company
to any persons or entities, 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 or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;

(b) The Company has represented that, to the
best of its knowledge and belief, no funds
have been received by the Company

from any persons or entities, including
foreign entities (“intermediaries”), 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) Based on such audit procedures that
we have considered appropriate in the
circumstances; nothing has come to our
notice that has caused us to believe that
the representations made to us under
paragraphs (iv)(a) and (b) contain any
material mis- statement.

v. The final dividend paid by the Company
during the current year in respect of the same
declared for the previous year is in accordance
with section 123 of the Companies Act 2013 to
the extent it applies to payment of dividend.
The interim dividend declared and paid by the
company during the year and until the date
of this report is in compliance with Section
123 of the Act. Further, the board of directors
of the company have proposed final dividend
for the current year which is subject to the