Statement of Deviation & Variation for the Qtr ended June 30, 2026

AIRFLOA RAIL TECHNOLOGY LIMITED. (Formerly known as Airflow Equipments India Pvt. Ltd.) Date: May 30, 2026 The Manager, Department of Corporate Services, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001, Maharashtra, India. Ref: Company Code No. 544516 ISIN: INE0XBS01012 Dear Sir / Madam, Subject: Statement on Deviation or Variation of funds under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations). Pursuant to Regulation 32 of the SEBI Listing Regulations and SEBI Circular No. CIR /CFD/ CMD1/ 162/ 2019 dated December 24, 2019 and SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023, please note that there are no deviation(s) or variation(s) in respect of the utilization of the proceeds of the Initial Public Offer (“IPO”) of the Company during the quarter ended 30th June 2026. A statement in this regard is enclosed as Annexure - 2. The aforesaid statement has been reviewed by the Audit Committee and taken on record by the Board. Kindly acknowledge and take the same on records. Thanking you, For Airfloa Rail Technology Limited. Haraprasad Rout Company Secretary and Compliance Officer No.9, Chelliamman Koll Street, Keelkatalai, Chennai – 600117. CIN: L30204TN1998PLC041571, GST No: 33AACCA9641E1ZY Mobile:- 9384870774, Website:-www.airflow.co.in Annexure – 2 Statement of Deviation from Managing Director Detailed Statement: 1) Issuer Details: Name of the issuer: Airfloa Rail Technology Limited Names of the promoters: Mr. Dakshinamoorthy Venkatesan, Mr. Dakshna Moorthy Manikandan, Mr. Sathishkumar Venkatesan Mrs. Nandhini Manikandan Industry/Sector to which it belongs: Manufacturing of railway products 2) Issue Details: Issue period: 11th September 2025 to 15th September 2025 Type of issue (public/rights): Public Issue Type of specified securities: Equity Share IPO Grading, if any: Issue size (in Lakhs): Rs. 9,109.80 Lakhs 3) Details of the arrangement made to ensure the monitoring of issue proceeds: Reply Particulars (Yes/No Comments of the Auditor /NA) Whether all utilization is as per the Yes All utilization is as per the disclosures in disclosures in the Offer Document? the Offer Document. Whether shareholder approval has been obtained in case of material NA deviations# from expenditures disclosed in the Offer Not Applicable Document? Whether the means of finance for the disclosed objects of the issue has NA changed? Not Applicable Is there any major deviation observed over the earlier monitoring NA Not Applicable agency reports? Whether all Government/statutory approvals related to the object(s) NA Not Applicable have been obtained? Whether all arrangements pertaining to technical NA Not Applicable assistance/collaboration are in operation? Are there any favorable events improving the viability of NA Not Applicable these object(s)? Are there any unfavorable events affecting the viability of NA Not Applicable the object(s)? Is there any other relevant information that may materially affect the No There is no other relevant information that decision making of the investors? may materially affect the decision making of the investors 4) Details of object(s)s to be monitored: (i) Cost of object(s)- Amount in Lakhs Original- Particulars of Reason Proposed Sr. cost as per Revised firm Item Head of cost financing No. offer Cost arrangements revision option document made Repayment of 1 600.00 NIL NA -- -- loan 2 Working Capital 5,927.02 NIL NA -- -- 3 Capex 1,367.78 NIL NA -- -- General Corporate 4 990.00 NIL NA -- -- Funds There has been no revision in the cost of the objects during the reported quarter. (ii) Progress in the object(s) – Amount utilized (Rs in lakh) Reasons Proposed Amount as for idle course of Total proposed in funds action unutilized Sr. the Offer As at At the Item Head# amount No. Document beginning Duri end (Rs in (Rs in lakh) of the ng of the lakh) quarter the quarter quart Remaining amount is Capital expenditure payable on Delivery of towards purchase of 1 1,367.78 291.08 0 291.08 1,076.70 Equipments/ Placing of machinery and new orders. equipment Repayment of a portion of certain ------ N.A.------ 2 outstanding 600.00 600.00 0.00 600.00 0.00 borrowing availed by our company Funding working 3 capital 5,927.02 5,927.02 0.00 5,927.02 0.00 ------ N.A.------ requirements General Corporate 4 990.00 990.00 0.00 990.00 0.00 ------ N.A.------ Purposes Total 8,884.80 7808.10 0.00 7,808.10 1,076.70 - - Note 1: As on 30th June 2026, out of net proceeds Rs. 8,884.80 Lakhs, Rs. 8,882.21 Lakhs was transferred from Public Issue Account to Monitoring Agency Account, and the remaining Rs. 2.59 Lakhs (net proceeds)is held in Public Issue Account. As on 30th June 2026, out of transferred proceeds Rs. 7,808.10 Lakhs is utilised and Rs. 90.00 Lakhsheld in fixed deposit receipts and the company has earned Rs. 2.86 Lakhs during the quarter and the balance Rs. 986.97 Lakhs is lying in monitoring agency account, including Rs. 2.86 Lakhs as earned interest. (iii) Deployment of unutilized IPO proceeds: Market Amount Earnings as Return on value as at S. Type of instrument where invested (in Maturity on June 30, Investment the end of No. amount is invested Rs lakh) date 2026 (in Rs (%) quarter (in lakh) Refer foot Rs lakh) notes Fixed Deposit - Axis Bank - 1 50.00 06/07/2026 6.31 3.00 56.31 925040105382542 Fixed Deposit held in Axis 2 40.00 06/07/2026 6.07 3.00 46.07 Bank - 925040105413413 Balance in Monitoring 3 Account – Axis Bank 984.11** NA NA NA 984.11 925020041866195 Balance in Public Issue 4 Account - Axis Bank 2.59^ NA NA NA 2.59 925020039322902 (Refer note 3) Total 1,076.70 - 1,089.08 **As on 30th June 2026, balance in Monitoring Agency Account is Rs. 986.97 Lakhs, out of which Rs. 984.11 Lakhs towards Issue Proceeds and Rs. 2.86 Lakhs as towards income. ^As on 30 June 2026, balance in Public Issue Account is Rs. 20.51 Lakhs, out of which Rs. 17.92 Lakhs towards issue expenses and Rs. 2.59 Lakhs towards net proceeds. (iv) Delay in implementation of the objects: Comments of the Board of Estimate of Completion Directors Date Delay (no. Actual Object(s) of days/ As per the Completion Proposed months) Offer date (In case Reason of delay course of Document of action Continuing objects, latest / revised estimate of Completion date. Capital expenditure towards purchase Fiscal 2025-26 Refer note 1 Refer note 1 Refer note 1 Refer note 1 of machinery and equipment 1076.70 lakhs Note 1- The company has placed orders for machinery during FY 2025-26; Remaining machinery is expected to be ordered and installed during FY 2026-27;The prospectus specifies that if the Net Proceeds are not completely utilised for the Objects in the stated period, such amounts will be utilised (in part or full) in Financial Year 2027-28, in accordance with applicable law. The delay in completion of certain capital expenditure items was primarily due to recent policy changes made by the Chinese Government, coupled with prevailing market conditions affecting supplier capacity and lead times. Hence the management has decided to defer the orders of new machinery. The company is expecting to complete the purchase by end of Fiscal 2027. 5) Details of utilization of proceeds stated as General Corporate Purpose (GCP) amount in the offer document-Not Applicable. DAKSHINAMOORTHY VENKATESAN Chairman-Cum- Managing Director DIN: 00232210