Airfloa Rail Technology Ltd

Order details

• Awarding entity: Furnishing Division, Integral Coach Factory, Chennai.
• Nature and scope: supply and installation of interior panelling and rubber floor cover for Kolkata Metro Tc/Mc coaches.
• Total value: Rs 6.26 crores.
• Domestic entity.
• Delivery deadline: by 30/11/26.
• Payment terms: up to 80% on inspection/provisional receipt; 20% on acceptance with installation charges.
• Contract type: Indian Railways standard/Stores contract conditions with addendum.
• Promoter/Promoter Group interest: N.A.
• Related party transactions: N.A.
• Date/time of receipt: 24/08/2026, 05:45 PM.

Meeting Details

• Date and time: 21 August 2026, 10:00 AM to 7:00 PM (first slot 10:00 AM).
• Type and mode: Group/One-on-One; Physical meeting.
• Venue: Grand Hyatt, Santacruz, Mumbai.

Participants

• Company management participated in the physical meeting.

Purpose

• Purpose: investor/analyst discussions based on publicly available information; UPSI not discussed.

Order details

• Awarding entity: Modern Coach Factory (MCF), Lalganj, Raebareli (domestic)
• Nature and scope: luggage rack modules for L2CC; total value Rs 70.56 Lakhs
• Payment terms: 95% on inspection certificate and dispatch; 5% on acceptance
• Delivery by 09/11/2026
• Domestic order from a domestic entity
• Promoter/Promoter group interest: No
• Date/time of receipt: 18/08/2026 11:36 AM
• Contract terms: Indian Railways Standard Conditions of Contract; GCC; addendum applied

Meeting Details

• Date: August 21, 2026; Time: 10:00 AM to 7:00 PM.
• Type: Group / One-on-One; Physical meeting.
• Venue: Grand Hyatt, Santacruz, Mumbai, Business Centre, Board Room-V.
• Registration link for participation provided.

Participants

• Key participants: Company management representatives will participate.
• Company Secretary and Compliance Officer to coordinate.

Purpose

• Discussions will be based on publicly available information.
• No unpublished price-sensitive information will be discussed.

Additional Notes

• Meeting may be cancelled, rescheduled, or postponed.

Issue Overview

• IPO of equity shares; net proceeds revised downward from the gross issue size.
• Main objectives: capex, debt repayment, working capital, and general corporate purposes.

Utilisation of Proceeds

• Capital expenditure: partial utilisation; delay due to Chinese policy changes and supplier lead times.
• Debt repayment: proceeds fully utilised.
• Funding working capital: proceeds fully utilised.
• General corporate purposes: proceeds fully utilised.
• Unutilised funds total: 1,076.70 lakh; parked in fixed deposits and monitoring/public issue accounts.
• Current unutilised funds include fixed deposits, monitoring, and public issue balances.

Governance and Compliance

• Deviations: none except delay on Object 1.
• Approvals: not explicitly stated as obtained in MA findings.
• No adverse regulatory actions or material events noted.

GCP

• GCP not applicable; no GCP utilization reported.

Fundraising details

• Mode: IPO.
• Offer size: Rs 9,109.80 Lakhs.
• Offer period: 11–15 September 2025.

Deviation and monitoring status

• No deviation or variation in IPO proceeds utilization for quarter ended 30 June 2026.
• Audit Committee reviewed the statement; Board placed on record.

Utilisation and monitoring

• Transferred IPO proceeds to Monitoring Agency: Rs 8,882.21 Lakhs.
• Total IPO proceeds available: Rs 8,884.80 Lakhs.
• Utilised: Rs 7,808.10 Lakhs; Unutilised: Rs 1,076.70 Lakhs.
• Monitoring account balance: Rs 986.97 Lakhs; FDR: Rs 90.00 Lakhs; Public Issue Account: Rs 2.59 Lakhs.
• FDs totaling Rs 90.00 Lakhs mature on 06/07/2026.

Delay in object implementation

• Delay in capex due to China policy changes and supplier lead times.
• Completion expected by end-FY 2027.

Key Decisions

• Formation of a subsidiary to pursue defence, aerospace, homeland security, and allied engineering activities.
• Approved deviation/variation in IPO proceeds utilization for quarter ended 30 June 2026.
• Audit Committee and Board reviewed the deviation/variation in utilization.
• Approved Monitoring Agency Report for the quarter ended 30 June 2026.
• IPO proceeds totaled Rs 8,884.80 lakh; Rs 7,808.10 lakh utilized; Rs 1,076.70 lakh unutilized.
• Transferred IPO proceeds to Monitoring Agency: Rs 8,882.21 lakh; Rs 2.59 lakh in Public Issue Account.
• Unutilized IPO proceeds deployed: fixed deposits totaling Rs 90 lakh; monitoring balance around Rs 987 lakh.
• Delay in capital expenditure objects; completion expected FY2027; reasons include Chinese policy changes and supplier lead times.
• Remaining machinery orders to be placed; completion targeted by end of FY2027.

Eastern Railway orders

• Order 1: Arm Rest for VB Train Set; Rs 15.29 L; domestic; 45 days; 100% on receipt.
• Order 2: Gas Spring for VB Train Set; Rs 22.63 L; domestic; 45 days; 100% on receipt.
• Order 3: Snack Table for VB Train Set; Rs 22.33 L; domestic; 45 days; 100% on receipt.
• Order 4: Executive Revolving 2-Seater Seat for VB Train; Rs 9.61 L; domestic; 45 days; 100% on receipt.
• Order 5: Seat Cushion Assembly for VB Train Set; Rs 18.37 L; domestic; 45 days; 100% on receipt.
• Order 6: Foot Rest for VB Train Set; Rs 19.19 L; domestic; 45 days; 100% on receipt.
• Aggregate value Rs 107.42 L across six orders; domestic; promoter/group interest: No.

CSR penalties

• Four RD Southern Region orders dated 13/07/2026 concern CSR non-compliance for 2019-20 to 2022-23.
• Orders relate to unspent CSR obligations under Section 135(7) of the Companies Act 2013.
• FY2020-21 penalty increased to ₹51,99,262 from ₹25,99,631.
• MD/Director penalties of ₹2,00,000 each confirmed.
• Company will file writ petition; intends High Court of Madras.
• Financial implications under assessment; no explicit cash-flow impact disclosed.
• Communication received on 17.07.2026 regarding four financial-year orders.
• Company to examine order and seek legal remedies as advised.
• Appeals filed against RoC adjudication orders under CA 2013 Section 454.
• Order modifications double the defaulted amount; officers in default unchanged.

CSR adjudication update

• Regional Director dismissed appeals and increased the company's penalty to about ₹1.8 crores.
• Penalty relates to CSR unspent funding timing; underlying CSR obligations discharged; no impact on operations.
• Company evaluating order and legal remedies; will inform exchanges of material developments.

Financial performance

• Q1 FY27 revenue rose to ₹100.7 crores from ₹33.6 crores a year earlier (≈200% YoY).

Outlook and execution

• On track to achieve ₹500 crores revenue target; healthy order pipeline and strong execution.

Governance and compliance

• Governance and compliance monitoring strengthened with enhanced internal controls and statutory reviews.