We have audited the standalone financial statements of Airfloa
Rail Technology Limited (Formerly known as Airfloa Rail
Technology Private Limited or Airflow Equipments (India)
Private Limited) ("the Company") which comprise the Balance
Sheet as at March 31, 2026 and the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that
date, and a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid financial
statements give the information required by the Companies
Act, 2013 ('Act') in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India, of the statement of affairs of the Company as
at March 31, 2026 its Profit and cash flows for the year ended
on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on
Auditing specified under section 143(10) of the Companies Act,
2013. Our responsibilities under those Standards are further
described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are
independent of the Company in accordance with the code of
ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our
audit of the financial statements under the provisions of the
Act and the rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements
and the code of ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis
for our opinion.
Information Other than the Financial Statements
and Auditor's Report Thereon
The Company's Management and Board of Directors are
responsible for the Other Information. The Other Information
comprises the information included in the Company's Annual
Report, but does not include the Financial Statements and our
Auditor's Report thereon.
Our opinion on the Financial Statements does not cover the
Other Information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Financial Statements, our
responsibility is to read the Other Information and, in doing
so, consider whether the other information is materially in
consistent with the Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of such other
information, we are required to report that fact. We have
nothing to report in this regard.
Management's Responsibility for the Financial
Statements
The Company's Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the Act
with respect to the preparation of these Financial Statements
that give a true and fair view of the financial position, and
financial performance, and Cash Flows of the Company in
accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under
Section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
implementation and maintenance of accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the Financial Statement that give a true and
fair view and are free from material misstatement, whether due
to fraud or error.
In preparing the Financial Statements, Management and Board
of Directors are responsible for assessing the Company's ability
to continue as a going concern, disclosing, as applicable, matters
related to Going Concern and using the Going Concern basis of
accounting unless Management either intends to liquidate the
Company or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's responsibilities for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an Auditor's Report that includes our opinion.
Reasonable Assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements.
As part of the audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
Ý Identify and assess the risks of material misstatement of
the Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Ý Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)(i) of
the Act, we are also responsible for expressing our opinion
on whether the company has adequate internal financial
controls with reference to financial statements in place and
the operating effectiveness of such controls.
Ý Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the Management.
Ý Conclude on the appropriateness of Management's use of
the Going Concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a
Going Concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our Auditor's
Report to the related disclosures in the Financial Statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our Auditor's Report. However, future
events or conditions may cause the Company to cease to
continue as a Going Concern.
Ý Evaluate the overall presentation, structure and content
of the Financial Statements, including the disclosures, and
whether the Financial Statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
We communicate with Those Charged with Governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide Those Charged with Governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditors' Report) Order,
2020, issued by the Central Government in terms of
Section 143(11) of the Act, we give in the Annexure A, a
Statement on the matters specified in the Order.
a. As required by Section 143(3) of the Act, we
report that:
(a) We have sought and obtained all the
information and explanations which to the best
of our knowledge and belief were necessary for
the purposes of our audit;
(b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid financial statements have been kept
so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit
and Loss, and the Cash Flow Statement, dealt
with by this report are in agreement with the
books of account maintained for the purpose
of preparation of these financial statements;
(d) In our opinion, the financial statements comply
with the Accounting Standards specified under
section 133 of the Act;
(e) On the basis of the written representations
received from the directors as on March 31,
2026 taken on record by the Board of Directors,
none of the directors are disqualified as on
March 31, 2026 from being appointed as a
director in terms of Section 164 (2) of the Act;
(f) With respect to adequacy of Internal Financial
Controls with reference to Financial statements and
the operating effectiveness of such controls, refer
to our separate report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the company's
internal financial controls with reference to financial
statements;
(g) With respect to other matters to be included in
the Auditor's Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rule, 2014,
as amended, in our opinion and to the best of our
information and the explanations given to us;
Ý The Company has disclosed the impact of
pending litigations on its financial statements.
Ý The Company has not entered into long term
contracts including derivative contracts.
Ý There has been no amount, required to be
transferred, to the Investor Education and
Protection Fund by the company.
(i) The Management has represented that,
to the best of its knowledge and belief,
other than as disclosed in the Notes
to the Accounts, no funds have been
advanced or loaned or invested (either
from Borrowed Funds or Share Premium
or any other sources or kind of funds)
by the Company to or in any other
persons or Entities, including Foreign
Entities ("Intermediaries"), with the
understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend
or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.
(ii) The Management has represented, that,
to the best of its knowledge and belief,
other than as disclosed in the Notes
to the Accounts, no funds have been
received by the Company from any
persons or entities, including Foreign
Entities ("Funding Parties"), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, directly or indirectly, lend
or invest in other Persons or Entities
identified in any manner whatsoever by or
on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.
(iii) Based on such audit procedures that
we have considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
above sub-clause (i) and (ii) contain any
material mis-statement.
Ý No Dividends have been declared or paid
during the year by the Company. So, the issue
of reporting compliance with Sec. 123 of the
Companies Act, 2013 does not arise.
Ý Based on our examination which included test
checks, the Company has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software. Further, during the
course of our audit we did not come across
any instance of audit trail feature being
tampered with.
(h) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of Section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the Company
to its directors during the year is in accordance with
the provisions of Section 197 read with Schedule V
of the Act.
For Varadarajan & Co
Chartered Accountants
Firm Regn.No. 004515S
Sd/-
CA V.Sadagopan, FCA
Partner,
Membership No. 022618
UDIN:26022618PPAYSV7607
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