Airfloa Rail Technology Limited disclosed that the Regional Director (RD), Southern Region, Chennai, has dismissed its appeals and enhanced penalties for delays in transferring unspent Corporate Social Responsibility (CSR) funds. The orders dated July 13, 2026 increase the financial liability on the company to an aggregate amount of approximately ₹1.8 crores for the financial years 2019-20, 2020-21, 2021-22, and 2022-23. The company stated that the underlying matter is procedural and compliance-related, with no impact on its business operations, execution capabilities, or long-term growth outlook.

The RD disposed of the appeals filed by airfloa rail technology and its Directors under Section 454(5) of the Companies Act, 2013. The authority modified the previous orders passed by the Registrar of Companies (ROC), Chennai, by enhancing the penalty on the company to twice the unspent CSR amount for the respective financial years. The violations relate to delays in transferring unspent CSR amounts to funds specified under Schedule VII of the Act.

The revised penalties imposed on the company and its directors are detailed below:

The company is currently evaluating the legal remedies available under the applicable provisions of law to mitigate the effect of the orders passed by the RD. Management indicated that a financial impact would arise only upon the conclusion of such proceedings and only if the enhanced penalty is ultimately upheld. The company reaffirmed that it remains on track to achieve its stated ₹500 crores revenue target, supported by a healthy order pipeline and robust execution capabilities. The disclosure was submitted to BSE Limited on July 20, 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Airfloa Rail Technology Limited has secured a new order worth Rs 85.07 Lakhs from the Furnishing Division of Integral Coach Factory, Chennai. The contract, received on July 18, 2026, involves the domestic supply and installation of 7 sets of pre-assembled dismantlable FRP modular toilets complying to HL3 as per EN-45545-2 for LWFAC coaches. This order strengthens the company's order book within the railway infrastructure segment.

The project is subject to Indian Railways Standard Conditions of Contract and General Conditions of Contract for the Stores Department of Indian Railways. Inspection will be conducted by a third-party agency. The execution timeline requires completion within a period of eight months from the order date.

Payment terms for the contract are structured around the supply and installation phases. Up to 80% of the supply portion will be paid against the inspection certificate and Provisional Physical Receipt Certificate. The remaining 20% of the supply portion, along with 100% of installation charges, will be released after receipt and acceptance of stores by the consignee based on the installation certificate.

The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the order does not involve any related party transactions and that neither the promoters nor group companies hold any interest in the entity awarding the contract.

Order Details