We have audited the accompanying standalone financial
statements of RAIL VIKAS NIGAM LIMITED, (hereinafter
referred to as "the Company"), which comprise of the
Standalone Balance Sheet as at 31^st March 2026, the Standalone
Statement of Profit and Loss (including Other Comprehensive
Income), the Standalone Statement of Changes in Equity and
the Standalone Statement of Cash Flows 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 "the
standalone financial statements").

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards ("Ind AS") prescribed under section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended and accounting principles
generally accepted in India, of the state of affairs of the
Company as at 31^st March 2026, its profit (including other
comprehensive income), changes in equity, and its cash flows
for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditors'
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India ("ICAI") together
with the ethical requirements that are relevant to our audit of
the standalone financial statements under the provisions of the
Act and the Rules 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 opinion on the standalone financial statements.

Emphasis of Matter

We draw your attention to the following matters:

a. The Company usually receives advance payment from
Joint Venture Companies for incurring expenditure on
their projects. However, in the case of one joint venture
company i.e., Krishnapatnam Railway Company Limited
(KRCL), the Company is incurring project expenditure on
a regular basis, some amount has been received from
KRCL during the year and the total amount receivable
from KRCL as on 31^st March 2026 is C1116.26 crore which
includes C889.95 crore on account of Interest on delayed
payment. The application of interest has been changed
from compound to simple w.e.f. 1⁵¹ October 2024, whereas
KRCL requested for application of simple interest w.e.f.
01.04.2020 in lieu of compounding interest. The matter
is pending with the Board of Directors of the Company
and adjustment if any will be recognized as and when the
matter is finalized. (refer note nos. 11.1, 11.6 & 48 to the
standalone financial statements).

b. Balances of some of the Trade Receivables, Other
Assets, Trade and Other Payable accounts are subject to
confirmation/reconciliation from the respective parties.
The management does not expect any material impact
on the financial statements arising from such pending
confirmations for the year ended 31^st March 2026 (refer
note no. 56 to the standalone financial statements).

Our opinion is not modified in respect of the matters mentioned
in the above paragraphs.

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.

Information Other than the Standalone Financial
Statements and Auditors' Report Thereon

The Company's Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in the
Management Discussion and Analysis, Director's Report,
Business Responsibility and Sustainability Report Corporate
Governance and Shareholder's Information, but does not
include the consolidated financial statements, standalone
financial statements, and our auditor's report thereon. The
annual report is expected to be made available to us after the
date of this auditor's report.

Our opinion on the standalone financial statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available to us and, in
doing so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements or
our knowledge obtained during the course of our audit, or
otherwise appears to be materially misstated. When we read
such other information as and when made available to us and
if we conclude that there is a material misstatement therein,
we are required to communicate the matter to those charged
with governance and take necessary actions as per applicable
laws and regulations.

Responsibilities of Management and Those Charged
with Governance 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, changes
in equity and cash flows 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 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 standalone financial statements, the Board of
Directors 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.

The Board of Directors are responsible for overseeing the
Company's financial reporting process.

Auditors' Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole are
free from material misstatement, whether due to fraud or
error, and to issue an auditors' report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions
of users taken on the basis of these standalone financial
statements.

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

• Identify and assess the risks of material misstatement of
the standalone 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 and
Board of Directors use of the going concern basis of

accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we
conclude that material uncertainty exists, we are required
to draw attention in our auditors' report to the related
disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditors' report. However,
future events or conditions may cause the Company to
cease to continue as a going concern.

• Evaluate the overall presentation, structure, and content
of the standalone financial statements, including the
disclosures, and whether the standalone 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's probable that the economic decisions of a reasonably
acknowledgeable user of the standalone financial statement
may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the statement.

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order,
2020 ("the Order"), issued by the Central Government
of India in terms of Section 143(11) of the Act, and on
the basis of such checks of the books and records of the
Company as we considered appropriate and according
to the information and explanation given to us, we give

in "Annexure A", a statement on the matters specified
in paragraphs 3 and 4 of the said 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 purposes of our audit;

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

(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including the Other
Comprehensive Income), the Standalone Statement
of Changes in Equity and the Standalone Statement
of Cash Flows 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 (Ind AS) prescribed under section 133 of
the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended;

(e) Pursuant to the Notification No. GSR 463(E) dated 5^th
June 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 the
Company, being a Government Company;

(f) We are enclosing herewith a report in
"Annexure - C" for our opinion on adequacy
of internal financial controls system in place in
the Company and the operating effectiveness of
such controls;

(g) Pursuant to the Notification No. GSR 463(E) dated 5^th
June 2015 issued by the Ministry of Corporate Affairs,
Government of India, provisions of Section 197 of
the Companies Act, 2013, are not applicable to the
Company, being a Government Company; and

(h) With respect to the other matters to be included in
the Auditors' Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, 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 40 to the
standalone financial statements;

ii. The Company has made provision, as required under
the applicable law or Indian Accounting Standards for
material foreseeable losses, if any, and to the extent
ascertained on long-term contracts Refer Note no. 19
to the Standalone Ind AS Financial Statements. The
Company did not have any derivative contracts.

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

iv. a). The Management 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 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, 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, 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, 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 the audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us to
believe that the representations under sub¬
clause (i) and (ii) of Rule 11(e) contain any
material misstatement.

v. a) The final dividend proposed in the previous

year, declared and paid by the company during
the year is in accordance with Section 123 of
the Act to the extent applicable.

b) The interim dividend declared and paid by the
Company during the year is in accordance with
section 123 of the Act.

c) As stated in Note 32 to the accompanying
standalone financial statements, the Board of
Directors of the Company has proposed final
dividend for the year which is subject to the
approval of the members at the ensuing Annual
General Meeting. The amount of dividend
proposed is in accordance with section 123 of
the Act, to the extent applicable

vi. Based on our examination which included test
checks, for the financial year ended March 31,2026,
the company has used an accounting software for
maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the

same has been 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. Additionally, the audit trail has been
preserved by the company as per the statutory
requirements for record retention. Further based on
our examination, the company has used an inventory
software WMS which is owned & operated by a third
party software service provider, for maintaining
its inventory and audit trail for the same has not
been made available to us, hence we are unable
to comment whether audit trail feature of the said
software was enabled and operated throughout
the year for all relevant transactions recorded in the
software or whether there were any instances of the
audit trail feature been tampered with.