Airfloa Rail Technology Limited has secured a substantial new order worth ₹6.00 crores from Indian Railways, marking a significant business milestone for the Chennai-based rail technology company. The order was received on January 21, 2026, from the Furnishing Division of Integral Coach Factory, Chennai, Tamil Nadu.

Order Details and Specifications

The comprehensive order encompasses specialized railway equipment for modern coach formations. The contract includes supply of modified wider AC duct systems with zigzag baffle plates specifically designed for VB coaches, along with other essential equipment for a complete 16-car rake formation.

Delivery Timeline and Execution

The order comes with stringent delivery requirements that demonstrate the urgency of Indian Railways' modernization efforts. Airfloa Rail Technology must commence work immediately upon order receipt, with zero days allowed for project initiation.

The Integral Coach Factory retains the right to modify delivery schedules based on production requirements and operational urgency, providing flexibility in the execution timeline while maintaining the 90-day completion framework.

Technical Specifications and Products

The order focuses on advanced air conditioning systems for modern railway coaches. The primary component involves one rake set of modified wider AC ducts featuring zigzag baffle plate technology for VB coaches, representing 16-car formation requirements.

Key technical elements include:

• Modified wider AC duct systems with enhanced airflow design
• Zigzag baffle plate technology for improved air distribution
• Complete equipment set for 16-car rake formation
• Compliance with Indian Railways' technical specifications

Regulatory Compliance and Corporate Governance

Airfloa Rail Technology Limited has fulfilled all regulatory disclosure requirements under SEBI regulations. The company confirmed this order does not involve any related party transactions and maintains arm's length dealing principles. No promoter or group company interests exist in the awarding entity.

The order represents a purely commercial transaction with Indian Railways, ensuring transparent business practices and regulatory compliance. Company Secretary Haraprasad Rout signed the disclosure documents, maintaining proper corporate governance standards.

Strategic Significance

This ₹6.00 crore order reinforces Airfloa Rail Technology's position in India's railway modernization sector. The company, operating under CIN L30204TN1998PLC041571, continues expanding its presence in specialized railway equipment manufacturing, particularly in air conditioning and ventilation systems for modern coach formations.

Airfloa Rail Technology Limited has received an adjudication order from the Registrar of Companies (RoC), Tamil Nadu, imposing significant penalties for delayed compliance with Corporate Social Responsibility (CSR) obligations. The order, dated January 20, 2026, pertains to violations related to financial year 2019-20 and was received by the company on the same date through email.

Penalty Details and Violations

The RoC has imposed penalties under Section 454 of the Companies Act, 2013, for violations of Section 135(5) and Section 135(6) related to CSR obligations. The adjudication order carries Order ID PO/ADJ/12-2025/CN/01243 and addresses the company's failure to timely transfer unspent CSR obligation amounts to funds specified under Schedule-VII of the Companies Act, 2013.

The penalty amount of ₹17.27 lakh imposed on the company is equivalent to the unspent CSR obligation for financial year 2019-20 that was belatedly transferred to the Prime Minister's National Relief Fund.

Directors Penalized

Two directors have been identified as officers in default and penalized ₹1.73 lakh each:

• Dakshinamoorthy Venkatesan (DIN: 00232210)
• Dakshna Moorthy Manikandan (DIN: 00232275)

Company's Response and Legal Action

Airfloa Rail Technology Limited has expressed disagreement with the penalty imposition, stating that the levy of maximum penalty is unjustified. The company argues that it deserves lenient treatment considering it voluntarily filed a suo moto adjudication application with RoC under SRN N30641906 dated May 8, 2025, and had already made good the non-compliance.

The company plans to file an appeal with the Regional Director under Section 454 of the Companies Act, 2013, within the permissible timeline. This appeal will challenge the penalty amount and seek relief based on the voluntary nature of the disclosure and subsequent compliance.

Financial Impact

The company has disclosed that if it is unable to obtain a waiver or reduction of the imposed penalty, the financial implications will affect the company's profitability to the extent of the final penalty amount. The total potential impact includes the company penalty of ₹17.27 lakh plus the director penalties.

Regulatory Compliance Context

The adjudication order stems from the company's initial application that covered multiple financial years including 2019-20, 2020-21, 2021-22, and 2022-23. However, the current penalty specifically addresses violations pertaining to financial year 2019-20. The company has maintained that it voluntarily sought adjudication and subsequently transferred the unspent CSR amount to the designated fund, demonstrating good faith compliance efforts.