The Comptroller and Auditor General of India (CAG) has appointed M/s rail vikas nigam Limited's Statutory Auditor for the financial year 2023-24. The appointment of M/s V. K. Dhingra & Co., Chartered Accountants, ensures continuity in regulatory oversight for the infrastructure developer, aligning with statutory requirements for central public sector enterprises.

Rail Vikas Nigam Limited made the disclosure on September 29, 2023, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The appointment is mandated under Section 139 of the Companies Act, 2013, which governs the audit framework for listed entities in India. The company notified both the BSE Limited and the National Stock Exchange of India Ltd. of the development.

Auditor Profile

M/s V. K. Dhingra & Co. is a chartered accountancy firm established in 1973 by Vinod Kumar Dhingra in New Delhi. The firm currently comprises thirteen partners and operates with a head office in Delhi and a branch office in Chandigarh. It holds Firm Registration Number (FRN) 000250N.

The firm provides attestation services including statutory audits for central public sector entities with Mahanavratna, Navratna, and Miniratna status. Its clientele includes public sector banks, financial institutions, autonomous bodies under various administrative ministries of the Government of India, and large manufacturing units in the cooperative sector.

Scope of Services

Beyond statutory audits, the firm offers management and operational audits, propriety audits, and Value for Money Audits. It also conducts fraud investigations, EDP audits, and organizational effectiveness audits. Additional services include national and international taxation consultancy, GST audit and consultancy, commercial and legal consultancy, and due diligence for business acquisitions.

The firm is empaneled with several national and international bodies, including:

• Comptroller and Auditor General of India (CAG)
• Reserve Bank of India (RBI)
• United Nations Industrial Development Organization (UNIDO)
• Registrar of Co-Operative Societies, New Delhi
• Ministry of Agriculture, Government of India
• Life Insurance Corporation of India (LIC)
• Industrial Development Bank of India (IDBI)

Regulatory Compliance

The disclosure confirms that Rail Vikas Nigam Limited is adhering to its listing obligations by timely informing stock exchanges of changes in its statutory auditor. The CAG’s appointment underscores the rigorous audit standards applied to government-linked infrastructure projects, ensuring transparency in financial reporting for FY24.

Rail Vikas Nigam has notified the National Stock Exchange of India Ltd. and BSE Ltd. that Shri A. K. Khandelwal ceases to be a director on its Board effective November 1, 2023. The change in directorate stems from his promotion to General Manager at East Central Railway, issued via Railway Board office order dated October 30, 2023. This regulatory disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, updates the composition of the Board following the departure of the Government Nominee Director.

The notification was signed by Kalpana Dubey, Company Secretary and Compliance Officer of Rail Vikas Nigam Limited, on November 1, 2023. The company stated that the Railway Board order was received on November 1, 2023, triggering the immediate cessation of Khandelwal’s tenure. As Principal Executive Director (GS) at the Railway Board and Government Nominee Director on the Rail Vikas Nigam Limited Board, Khandelwal’s exit marks a routine administrative change in the public sector undertaking’s leadership structure.

Updated Board Composition

With the departure of Shri A. K. Khandelwal, the Board of Directors now comprises eight members. The updated list reflects the current designation and roles of the remaining directors as on November 1, 2023.

The Board retains its full complement of executive and non-executive members, with Mr. Pradeep Gaur continuing as Chairman and Managing Director. The remaining directors cover key functional areas including projects, operations, finance, and personnel, ensuring continuity in governance and operational oversight during the transition period.

Regulatory Compliance and Governance Implications

The disclosure adheres strictly to Regulation 30 of the SEBI (LODR) Regulations, 2015, which mandates timely reporting of changes in board composition. The prompt notification on November 1, 2023, demonstrates compliance with listing obligations. For investors, the departure of a government nominee director is a standard procedural event in public sector undertakings, typically driven by internal promotions or transfers within the parent ministry. The promotion of Shri A. K. Khandelwal to General Manager at East Central Railway indicates career progression within the Indian Railways hierarchy rather than any adverse governance issue. The Board remains fully constituted with no vacancies requiring immediate filling, allowing Rail Vikas Nigam Limited to maintain stable strategic direction and operational execution without disruption.