Rail Vikas Nigam Limited has decided to close its wholly owned subsidiary, RVNL Infra South Africa, marking a strategic shift in its international operations. The Board of Directors approved this decision during a meeting held on July 25, 2026, alongside key administrative appointments for internal and cost auditing functions for the upcoming financial year.

The Board Meeting commenced at 11:00 A.M. and concluded at 12:20 P.M. In accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015, the company disclosed the outcomes to the National Stock Exchange of India Ltd. and BSE Ltd. The disclosures were made pursuant to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Subsidiary Closure

The primary operational decision taken by the Board was the closure of RVNL Infra South Africa. This entity is a wholly owned subsidiary of Rail Vikas Nigam Limited. The filing does not specify the financial impact or the timeline for the winding-up process, but the approval signifies the formal initiation of the closure procedure in South Africa.

Auditor Appointments and Extensions

The Board also addressed critical compliance roles for the company’s audit framework:

• Internal Auditor Extension: The contract of M/s. Ravi Rajan & Co. LLP, Chartered Accountants, as Internal Auditor was extended for another period of six months. This extension covers the period up to September 30, 2026.
• Cost Auditor Appointment: M/s. R.M. Bansal & Co., Cost Accountants, was appointed as the Cost Auditor of the Company for the financial year 2026-27 (FY2026-27). The appointment was effective from July 25, 2026.

Profile of Appointed Cost Auditor

M/s. R.M. Bansal & Co. brings significant experience to the role. The firm has twelve partners and maintains professional offices across twelve major Indian cities, including Kanpur, Lucknow, New Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Thiruvananthapuram, Bhubaneswar, Dehradun, and Bilaspur.

The firm possesses 50 years of total experience, comprising 34 years as a practicing firm of Cost Accountants since July 12, 1990, and 17 years of individual practice from 1974 to 1990. They have previously conducted cost audits for various Maharatna and Miniratna public sector undertakings under Central and State Government companies. No relationships between the directors and the appointed auditor were disclosed.

Strategic Implications

The closure of the South African subsidiary suggests a consolidation of Rail Vikas Nigam Limited’s global footprint or a reassessment of its overseas project pipeline. While the filing provides no explicit reason for the closure, such decisions are often driven by regulatory changes, project completion, or strategic realignment. Simultaneously, the timely appointment of auditors ensures compliance with statutory requirements for FY2026-27, maintaining governance continuity as the company navigates these structural changes.

Rail Vikas Nigam has emerged as the lowest bidder (L1) for a project valued at ₹358.97 crore from East Central Railway. The Engineering, Procurement and Construction (EPC) contract encompasses doubling work along the Sitamarhi-Raxaul section in the Samastipur Division, strengthening the company's infrastructure portfolio.

Project Scope and Execution

The project involves construction activities over a stretch of 41.04 km, extending from Kundawa Chainpur (excl.) to Raxaul (excl.). The scope includes earth work, blanketing, minor and major bridges, station buildings, platform work, level crossing (LC) work, and other miscellaneous works designed for 25T Indian Railway Standard Loading.

Contract Details

The key parameters of the order are summarised below:

The order, awarded by a domestic entity, falls within the normal course of business for the company. There are no related party transactions involved in the award.