Oriental Rail Infrastructure Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, confirming no deviation from approved objects for its Rs 212.20 crore preferential allotment of equity shares and convertible warrants. The report, issued by CARE Ratings Limited, provides insights into the company's fund utilization and implementation progress.

Key Highlights

• No Deviation: The company reported no deviation in the utilization of proceeds raised through the preferential issue.
• Over-Utilization: Working capital funds were over-utilized by Rs 12.15 crore (5.73% of issue size).
• Delayed Deployment: The second tranche of funds experienced delays in deployment.
• Unutilized Funds: Rs 42.00 crore remain deployed in fixed deposits.

Fund Utilization Breakdown

Implementation Progress and Challenges

1. Working Capital Over-Utilization: The company has utilized Rs 24.77 crore towards working capital requirements of its subsidiary, Oriental Foundry Private Limited, for vendor payments. This led to an over-utilization of Rs 12.15 crore, approximately 5.73% of the total funds raised.

2. Delayed Deployment: The second tranche of funds, amounting to Rs 31.69 crore, was scheduled to be deployed by March 27, 2025. However, the company completed the deployment on July 29, 2025, resulting in a delay of 124 days.

3. Unutilized Funds: As of September 30, 2025, Rs 42.00 crore remain unutilized and are primarily deployed in fixed deposits with Bank of Baroda, earning interest rates ranging from 4.25% to 7.55%.

4. General Corporate Purpose: The company has utilized Rs 2.27 crore from the General Corporate Purpose fund for income tax payments.

Monitoring Agency's Observations

CARE Ratings Limited, the appointed monitoring agency, noted that part of the unutilized proceeds were deployed in the subsidiary's current account at the end of the reporting quarter. This deployment is not explicitly allowed as per the Offer Document, and the Board has been advised to take note of this matter.

The monitoring agency report provides a comprehensive overview of Oriental Rail Infrastructure's fund utilization, highlighting both adherence to approved objects and areas requiring attention. While the company has maintained overall compliance, the over-utilization of working capital funds and delays in deployment of the second tranche indicate potential areas for improved financial management.

Investors and stakeholders may want to monitor the company's progress in fully utilizing the remaining funds and addressing the noted delays in implementation to ensure optimal use of the raised capital for the company's growth and operations.

Oriental Rail Infrastructure Limited has issued a corrigendum to rectify typographical errors in its recently released unaudited consolidated financial results for the quarter and half-year ended September 30, 2025. The company clarified that the half-yearly period should be read as September 30, 2024, instead of the previously mentioned June 30, 2024.

Financial Performance

The company reported the following financial results for the quarter ended September 30, 2025:

The company's performance shows a significant decrease in revenue and a decline in net profit compared to the same quarter in the previous year.

Corporate Updates

In addition to the financial results, Oriental Rail Infrastructure Limited made several important announcements:

1. Internal Auditor Change: The Board of Directors approved the appointment of M/s. K.S. Agarwal & Co., Chartered Accountants (FRN: 137644W), as the new Internal Auditors of the Company for the Financial Year 2025-26. This change comes after the resignation of M/s. H.Y. Pancha & Associates due to health issues.

2. Order Book: The company, along with its subsidiary Oriental Foundry Private Ltd., reported an order book of ₹2,101.32.

3. Board Meeting Details: The Board meeting, held on November 12, 2025, commenced at 12:00 p.m. and concluded at 02:20 p.m.

New Internal Auditor Profile

CA Kailashchandra S. Agrawal, the principal of M/s. K.S. Agarwal & Co., brings over 12 years of post-qualification experience to the role. His expertise includes:

• Comprehensive financial and audit solutions since 2012
• Successful handling of statutory audits for more than 40 companies
• Extensive experience in tax audits, internal audits, and income tax advisory
• Specialization in audits of government-registered cooperative housing societies

The appointment of M/s. K.S. Agarwal & Co. is expected to bring strong technical knowledge and a client-first approach to the company's internal audit function.

Oriental Rail Infrastructure Limited's management has emphasized its commitment to transparency by promptly issuing the corrigendum and providing detailed information about the changes in its internal audit function. Investors and stakeholders are advised to take note of these updates and the company's current financial position.

For more detailed information, stakeholders can refer to the company's website at https://www.orientalrail.com/ .